Congressional Investigation Finds Major Cyber Lapses at FDIC

The FDIC has seen major cybersecurity lapses and needs significant improvements, according to a preliminary investigation by the House Committee on Science, Space and Technology. The committee released its preliminary findings prior to today’s hearing on FDIC information security with Chairman Martin Gruenberg called to testify.

The investigation included information about eight FDIC data breaches in which current or former FDIC employees had removed — allegedly inadvertently — data storage devices containing the personal information of more than 160,000 people and sensitive and confidential bank supervisory information.

The report faulted the agency for “evading congressional oversight” as the Science Committee investigated these breaches under the auspices of a law governing federal agency cyber practices. It also found that the FDIC’s chief information officer “created a toxic work environment, misled Congress and retaliated against whistleblowers.”