(Bloomberg) — Some brokerages aren't doing enough to protect themselves from cyberattacks while other firms don't share information that could reduce future threats, according to U.S. securities regulators.
The Financial Industry Regulatory Authority said its examiners found wide variation in the way brokers defend against the risk of hackers. While large brokers have sophisticated systems for monitoring threats and sharing information, some smaller firms haven't taken basic steps such as assessing their vulnerabilities, Finra said in a report released Tuesday.
Finra's findings follow hacks on large banks such as JPMorgan Chase & Co. that led to the theft of customer data and a breach of web-based systems operated by the Federal Reserve. Brokerages could bolster their defenses by tightening relationships with vendors and improving employee training, the report said.
"Finra expects firms to consider the principles and effective practices presented in this report as they develop or enhance their cybersecurity programs," the regulator, which is funded by the brokerage industry, wrote in its report. "Finra will assess the adequacy of firms' cybersecurity programs in light of the risks they face."
Complete your profile to continue reading and get FREE access to BenefitsPRO, part of your ALM digital membership.
Your access to unlimited BenefitsPRO content isn’t changing.
Once you are an ALM digital member, you’ll receive:
- Critical BenefitsPRO information including cutting edge post-reform success strategies, access to educational webcasts and videos, resources from industry leaders, and informative Newsletters.
- Exclusive discounts on ALM, BenefitsPRO magazine and BenefitsPRO.com events
- Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com
Already have an account? Sign In
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
