Oct. 1, 2012 – Reports last week of the latest spate of cyber attacks on the largest U.S. banks included references to an executive order that the White House is circulating and may issue in the absence of legislation.
Reports Friday said the recent attacks have breached “some of the nation’s most advanced defenses” (Bloomberg, Sept. 28). JPMorgan Chase and Wells Fargo are among the affected institutions, report said.
The Senate, having failed a procedural hurdle this summer, has yet to act on a package of reforms for cyber security, and reports have intimated for weeks that the president is looking at issuing an order to protect vital computer networks. Congress could still act during the lame-duck session. However, Sen. Joe Lieberman, I-Conn., chairman of the Senate Homeland Security and Governmental Affairs Committee, indicated no expectation that will happen in a letter sent last week urging President Obama to issue an order.
NAFCU follows developments in Congress and the marketplace related to the issue of data breaches and exposure of financial institution account holders, particularly credit union members, to financial losses and identity theft.
The association has long sought legislation that would, among other things, require national standards for data security, impose liability if such standards are not met and require immediate breach notification to financial institutions and their account holders.