The report, published Tuesday, outlines measures the Fed has taken to improve its own cybersecurity controls, how the agency is supervising the activities of covered institutions in the space, and what global developments and technologies pose increased risk of presenting cyber threats.
This year, the Fed noted generative AI “may … provide threat actors with improved methods for performing social engineering, email phishing, and text messaging smishing attacks compromising access into firms’ systems, emails, databases, and technology services.”
The agency also noted quantum computing and increased reliance on partnerships with financial technology (fintech) firms as emerging risks.
“Of particular potential risk is the rapid adoption by financial institutions of application programming interfaces, which provide accessible gateways into firms’ information (often relied on by fintech platforms for information sharing) and may increase the risk of data breaches, especially of customers’ personal or sensitive information, if not effectively secured and permissioned,” the agency said.
Other risk areas cited included geopolitical tensions regarding the Russia-Ukraine…
