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Senator Urges New Cybersecurity Regulations for Banks

Senator Urges New Cybersecurity Regulations for Banks - top government contractors - best government contracting event
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Senator Urges New Cybersecurity Regulations for Banks - top government contractors - best government contracting event
Robert Menendez

Customers are ill-served by current regulations, which do not go far enough in alerting them about breaches at financial institutions, according to a senator.

During a Senate Banking, Housing and Urban Affairs Committee hearing, Sen. Robert Menendez (D-N.J.) questioned why Citigroup took nearly a month to report a breach affecting more than 360,000 credit card holders in North America.

Citigroup, which confirmed the breach earlier this month, never notified Menendez’s chief of staff that his account was compromised, the senator said.

“It seems to me there is a fiduciary responsibility by the [financial] entity to proactively tell their customer that has happened,” he said during the hearing, according to PCWorld.

In a June 15 letter to the acting head of the Office of the Comptroller of the Currency, Menendez stressed the importance of investigating the Citi breach given the implications it has for the security of the financial industry in general, as well as the company“™s failure to notify customers immediately.

“As you know, over the last six years, there have been 288 publicly disclosed breaches at financial services companies that exposed at least 83 million customer records,” he wrote. “And just this weekend, the International Monetary Fund was hit by cyber hackers.  This problem is widespread and must be properly addressed by all parties.“

During this week’s hearing, Menendez called for a national law requiring breached businesses to notify affected customers, as well as for the Senate to pass his Cybersecurity Enhancement Act. Among other things, the act would allocate new money for cybersecurity research and scholarships.

 

 

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