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04/25/2024 04:44:53 am

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China Behind FDIC Hack Attacks: US Officials

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(Photo : Getty Images) Banking regulator FDIC believed it is being targeted by Chinese military-sponsored hacks.

The FBI is probing how hackers managed to infiltrate computers at the Federal Deposit Insurance Corporation (FDIC) since 2010 in a security breach that senior FDIC officials believe was funded by China's military, sources familiar about the matter told Reuters.

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Hackers were able to gain access to dozens of computers, including the work station of former FDIC Chairwoman Sheila Bair. 

Last month, the agency allowed congressional staff to access international communications among senior FDIC officials related to the security breach. The officials pinned that the hacking attacks were the works of Chinese military-backed individuals. However, the congressional staff was barred from retaining copies of the exchanges, which did not explain why they were convinced that China was behind the hacks.

FDIC spokeswoman Barbara Hagenbaugh refused to comment on the previously unreported FBI probe but said that the regulator "took immediate steps" to root out the hackers once they discovered the breach.

The breach is one of several security lapses at the FDIC in recent years. This year, the regulator has informed the Congress of at least seven cyber security incidents, which occurred between 2015 and 2016.

The FDIC said that there were 159 incidents of illegal computer access during the 2015 fiscal year, according to a redacted copy of its annual report obtained by the media under a Freedom of Information Act request.

The regulator said that it is beefing up information security standards, including a ban on thumb drives. Coordination with the Department of Homeland Security is also being emphasized to prevent future attacks.

"We are continuing to take steps to enhance our cybersecurity program," Hagenbaugh said.

The FDIC is one of the three federal agencies that regulate commercial banks in the United States. It oversees confidential blueprints on how big banks would handle bankruptcy. It also has access to records on millions of individual American deposits.

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