Committee Releases Interim Report on FDIC Cybersecurity

July 13, 2016

U.S. House Science, Space, and Technology Committee today released an interim staff report with preliminary findings from the committee’s investigation of major data breaches at the Federal Deposit Insurance Corporation (FDIC).

Chairman Lamar Smith (R-Texas): “The committee’s interim report sheds light on the FDIC’s lax cybersecurity efforts. The FDIC’s intent to evade congressional oversight is a serious offense. Major improvements need to be made to the FDIC’s cybersecurity mechanisms.

“The committee’s investigation is ongoing. We will continue to work towards increasing transparency at the agency and hold the FDIC accountable. Americans should be able to trust the agency with their sensitive banking information. The committee looks forward to hearing explanations from the FDIC Chairman tomorrow and what changes he plans to make.”

The committee found that Chief Information Officer (CIO) Larry Gross has engaged in mismanagement, misled Congress, and retaliated against whistleblowers. He has fostered a hostile work environment. It is also clear that the FDIC deliberately evaded congressional oversight. In addition, the committee found the FDIC has historically experienced deficiencies related to its cybersecurity posture, and those deficiencies continue to the present.

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