Bangladesh Bank Heist
In March of 2016, $81 million was stolen from the Bangladesh central bank’s account at the Federal Reserve Bank of New York. Congresswoman Maloney, then Ranking Member of the House Financial Services Subcommittee on Capital Markets and GSEs, as well as a senior member of the House Oversight and Government Reform Committee, demanded answers from the New York Fed as the world tried to make sense of what happened and how.
The New York Fed responded to the Congresswoman’s inquiries and stated that it was reviewing its security protocols. Following this review, the New York Fed made a number of reforms to prevent similar cyber-heists from occurring in the future, such as the creation of a 24-hour hotline for foreign central banks.
In May of 2016, the Congresswoman kept up the pressure for reforms by requesting that the three U.S. bank regulators — the Federal Reserve, the Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corporation (FDIC) — review the Bangladesh Bank heist and take steps to ensure that both U.S. banks and SWIFT (the international money-transferring system) have cybersecurity controls in place to guard against similar cyber-attacks.
In response to the Congresswoman’s efforts, SWIFT made a series of sweeping reforms to the international money transferring system. SWIFT has completely overhauled their security system, and now requires its members to have a comprehensive, 16-point security system in place — and they inspect their members annually to ensure they’re complying with the new security program. SWIFT has also started using 2-factor authentication, which is the gold standard among security professionals.
More on Bangladesh Bank Heist
NEW YORK – Congresswoman Carolyn B. Maloney (NY-12) outlined priorities for cybersecurity of the financial system today at Symphony’s “Innovate 2016” conference. During her remarks, the Congresswoman noted that the risks posed by cyberattacks “have grown significantly in the past few years” and that in order to address these new dangers, we, as a country, must recognize that they go beyond businesses issues, but must be addressed as a policy issue due to operational risk, disruption of financial activity and threats to customer privacy. Rep.
U.S. banking regulators are ramping up oversight around financial messaging system Swift, a key intermediary in global payments that faces greater scrutiny following a rash of cyberattacks on its users.
It has been a busy time in both Washington, D.C. and New York and I wanted to keep you updated on the work I’ve been doing and on issues that may concern you.
Recent hacks of international banks through the SWIFT messaging system raise serious questions about cyber-related risks to U.S. firms, Representative Carolyn Maloney wrote on Monday in a letter to the country's top banking regulators that asked about measures to strengthen systems' security.
The Federal Reserve Bank of New York defended fund-transfer procedures that have come under scrutiny after the theft of tens of millions of dollars from Bangladesh’s account at the New York Fed, in a letter released by a lawmaker Friday.
Thomas Baxter, the head lawyer and executive vice president at the New York Fed, was responding in an April 14 letter to enquiries from Rep. Carolyn B. Maloney (D., N.Y.), who asked the Fed for information about its procedures for recalling transfers that turn out to be fraudulent.
A U.S. lawmaker is seeking answers from the Federal Reserve Bank of New York over the theft by cyber criminals of $81 million from the Bangladesh central bank's account at the New York Fed.
Rep. Carolyn Maloney of New York, the senior Democrat on a key subcommittee of the House Financial Services panel, asked the New York Fed in a letter why it blocked 30 of the 35 fraudulent orders to transfer funds out of the account but failed to block the first five orders.
U.S. Congresswoman Carolyn Maloney, a New York Democrat, said on Tuesday that she wants a probe of last month's cyber heist from a Bangladesh Central Bank account at the New York Fed.
"We need a thorough investigation to determine how these criminals were able to manipulate the system so that banks and financial institutions can institute standards that will prevent hackers and cyber criminals from siphoning money out of accounts like those held at the New York Fed again," she said in a press statement.
WASHINGTON, DC. – Today, Congresswoman Carolyn B. Maloney (NY-12) sent a letter to Federal Reserve Bank of New York President William Dudley pressing him for answers on the New York Fed’s actions in the recent heist of $81 million from the Bangladesh central bank’s account at the New York Fed. Rep. Maloney is the Ranking Member of the House Financial Services Subcommittee on Capital Markets and GSEs, as well as a senior member of the House Oversight and Government Reform Committee. A copy Rep.