Fed keeping an eye on banks for impact of Equifax breach

The central bank is ensuring that banks take appropriate measures in cases of fraudulent transactions and contaminated data

Fed keeping an eye on banks for impact of Equifax breach
Although the Federal Reserve does not supervise credit reporting agencies, the central bank is now keeping an eye on banks to look out for the effects of the recent data breach at Equifax, according to a report by Bloomberg.
According to Fed Chair Janet Yellen, the Fed is working with banks under its supervision to prevent fraudulent transactions and other possible negative impacts of the “very serious” breach. Among the Fed’s efforts is making sure that banks act appropriately in case they discover fraudulent transactions or contaminated data.
Speaking at a news conference, Yellen advised consumers to monitor their credit reports and personal finances. Equifax had announced that the breach could impact as many as 143 million US consumers. As a result of the breach, hackers accessed names, Social Security numbers, birth dates, addresses, and, in some instances, driver’s licenses information.
“It points to the importance of strong cyber security controls and attention to cyber security risks, which we do see as one of the most significant risks to the financial sector,” Yellen said of the hack.

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