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FEDERALhearing transcript
High Impact

Congressional Hearing on FDIC Cybersecurity Breaches

Original title: EVALUATING FDIC'S RESPONSE. TO MAJOR DATA BREACHES:. IS THE FDIC SAFEGUARDING. CONSUMERS' BANKING INFORMATION?

January 1, 2017

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The Frame

What this does

The hearing addresses the security of sensitive consumer banking information and the effectiveness of federal oversight regarding the FDIC's management of data breaches and internal threats.

Who is mentioned in the record

Potentially affected actors named in the source documents. Mention is not a position.

FDIC

The agency is the subject of the investigation regarding its cybersecurity practices and internal management.

Bank Consumers

Consumers are affected by the security of their banking information held by the FDIC.

What changed

Last recorded activity January 1, 2017.

What's next

Next step not available in the current record.

Summary

This hearing transcript documents a 2016 House Committee on Science, Space, and Technology investigation into cybersecurity failures at the Federal Deposit Insurance Corporation (FDIC). The committee examined reports of major data breaches, allegations of a toxic work environment, and claims that the agency misled Congress and retaliated against whistleblowers.

Key Facts

  • The FDIC experienced at least eight major data breaches meeting Office of Management and Budget reporting guidelines.
  • A September 2015 breach in New York involved a disgruntled employee downloading sensitive 'living wills' (resolution plans) without authorization.
  • The Inspector General determined the September 2015 breach required law enforcement involvement.
  • The Committee's investigation alleged the FDIC Chief Information Officer created a toxic work environment and retaliated against whistleblowers.
  • The Committee report alleges the FDIC deliberately evaded Congressional oversight.
  • The Inspector General found that a formal insider threat program could have potentially prevented the 2015 breach.
  • The hearing took place on July 14, 2016, in the Rayburn House Office Building.

Frequently Asked Questions

What was the nature of the data breaches at the FDIC?
The FDIC experienced at least eight major breaches, including one in September 2015 where an employee unauthorizedly downloaded sensitive resolution plans, also known as ''.
What were the primary concerns raised by the Committee?
The Committee raised concerns regarding persistent cybersecurity weaknesses, the evasion of Congressional oversight, and allegations that the Chief Information Officer fostered a toxic work environment and retaliated against whistleblowers.

Why It Matters

The hearing addresses the security of sensitive consumer banking information and the effectiveness of federal oversight regarding the FDIC's management of data breaches and internal threats.

News Coverage

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Sponsors

Discoveries

Patterns POLISCOPE noticed across the record. These are observations to investigate, not conclusions.

policy shift90% confidence

Insider Threat Program Deficiency

The hearing highlights a critical failure to implement a formal insider threat program, which was identified as a preventative measure for data breaches.

Connected Entities

personLamar S. SmithChairman of the Committee on Science, Space, and TechnologyMap →
organizationCommittee on Science, Space, and TechnologyHouse of Representatives committee conducting the hearingMap →
personEddie Bernice JohnsonRanking Member of the CommitteeMap →
organizationFDICFederal Deposit Insurance CorporationMap →
personFred W. GibsonActing Inspector General of the FDICMap →
personMartin J. GruenbergChairman of the FDICMap →

Sources

Open source document

www.govinfo.gov

Analysis Score

0–100
  • Significance85
    How much this matters to a regular citizen
  • Controversy80
    Intensity of disagreement among stakeholders
  • Entertainment60
    Compellingness for a non-policy-wonk reader
  • Buzz40
    Current news / social attention level

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