Why is cybersecurity a high priority for the Federal Reserve? The numbers speak for themselves, with more than 75 percent of banking executives reporting an increase in the number of cyberattacks on their institutions in the past year.
To keep customers’ sensitive information and money safe, it’s important for financial institutions to be ready before an event occurs. The Federal Reserve provides toolkits and other free resources that may help.
As part of our work in the Third District, the Federal Reserve Bank of Philadelphia has been hosting events focused on cybersecurity and fraud prevention for over a decade — bringing together experts from financial institutions, law enforcement, and more to share information, make connections, and discuss the latest trends.
Preparation Is Key
When it comes to cybersecurity, timing is everything. Instances of fraud and cybercrime take place every day, and organizations need to have trained staff and effective plans in place so they can respond quickly when an attack occurs.
This is true for financial institutions of all sizes, but it’s often more difficult for community banks, which may face staffing challenges, lack access to the latest information, and rely more on third-party providers — the latter over which they have limited control and that criminals can potentially exploit.
Our Supervision, Regulation, and Credit Department hosts events designed to help bankers in the region set themselves up for success.
The most recent of these was the Hamilton Regional Series Tabletop Exercise. Held in the fall in collaboration with the Federal Reserve Board and Department of the Treasury, it gave participants a chance to strengthen their cybersecurity incident response plans in a safe, collaborative environment.
“We ask them to work through three fictional yet realistic scenarios,” explained Jonathan Brown, vice president of safety and soundness at the Philadelphia Fed. “Each one is geared toward helping attendees identify gaps in their current response plans and procedures — gaps they can close before they’re faced with a real threat.”
The Power of Information and Collaboration
The speed at which technology is evolving means that cyberthreats are constantly evolving as well.
In order to effectively prepare, institutions need to stay up to date on the latest information and trends. That’s where our Information Security (IS) team comes in.
The team has been hosting cybersecurity events for well over a decade. Many of these — including this year’s 15th Annual Financial Institutions and Law Enforcement Cybersecurity Conference — act as venues for attendees to hear directly from government representatives, security experts, and law enforcement professionals.
While these events are open to participants from a range of institutions, they often focus on providing information and resources to community bankers in the region. Community banks are a key part of the Third District’s economy, providing important services to the residents and small businesses they serve.
“The Philadelphia Fed has been an excellent partner in promoting cybersecurity in the region,” said Chris Nardo, chief retail officer at Asian Bank. “Chances to hear directly from information security experts and representatives from government agencies are so valuable for community bankers — especially now, with technologies like AI and quantum computing presenting a host of new challenges and opportunities.”
But information is only half of the equation. The relationships attendees gain are just as important.
Meeting face to face allows cybersecurity professionals from the region to share insights and best practices and form bonds that will extend well into the future. That’s part of why our IS team decided to host an in-person roundtable once per year.
“Our hope is that people will make connections and strengthen their networks. We also want it to be a chance for them to get to know the Federal Reserve a little more — who we are, what we do, and how we might be able to help them,” said Philadelphia Fed Senior Information Security Analyst Molly Dodge.
And it’s a two-way street: The stories attendees share inform the Philadelphia Fed’s work in the Third District.
“The roundtables are a way for us to hear about specific fraud and cyber concerns taking place in the region from the bankers and experts on the front lines,” said Philadelphia Fed Information Security Officer Chase Hudson. “We can then take that information and use it to tailor our future programming and events to the topics that are most pertinent to them.”
The bottom line? We’re stronger together than any institution is alone.