Bank contractors offer ‘back door’ to cyber thieves – NY regulator

Too many banks are vulnerable to cyber-security breaches through their third-party vendors, a New York regulator announced. They have promised swift action to beef up security at financial institutions.

During a survey of 40 banks, the New York Department of Financial Services (NYDFS) discovered that thirty percent do not require their third-party vendors to notify them of any cyber security breaches that they have taken place.

To make matters worse, fewer than half conduct on-site security assessments of their vendors, while twenty-one percent do not even require their vendors to abide by minimum information security requirements.

“A bank’s cyber security is often only as good as the cyber security of its vendors,” NYDFS superintended Benjamin M. Lawsky said in a statement. “Unfortunately, those third-party firms can provide a backdoor entrance to hackers who are seeking to steal sensitive bank customer data.”

Read the Full Article: Source – Russia Today

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