Dark Reading is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them.Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

Risk

1/16/2020
12:15 PM
50%
50%

NY Fed Reveals Implications of Cyberattack on US Financial System

A "pre-mortem analysis" sheds light on the potential destruction of a cyberattack against major US banks.

A cyberattack compromising the integrity of US financial systems could lead to an "unprecedented" reconciliation and recuperation process, bank analysts predict in new research published this week from the Federal Reserve Bank of New York.

As part of a "pre-mortem analysis," Thomas Eisenback, Anna Kovner, and Michael Junho Lee analyzed the potential consequences if a cyberattack harmed banks' ability to send payments between one another. They estimate the impairment of any of the five most active US banks could lead to "significant spillovers" to other banks and affect 38% of the network on average. These top banks account for close to half of total payments, the top 10 for more than 60%.

"A cyber attack on any of the most active U.S. banks that impairs any of those banks' ability to send payments would likely be amplified to affect the liquidity of many other banks in the system," the analysts write. If banks respond strategically — which is likely, if there is uncertainty surrounding the incident — the extent of amplification would be even greater, they explain.

To arrive at these findings, the analysts considered how an attack on multiple banks may interfere with payment activity in the Fedwire Funds Service, which represents the majority of wholesale payments between financial institutions in the US. They chose to analyze Fedwire given how high-value payment systems could appeal to an attacker who is eager to cause widespread economic damage.

Read more details here.

Check out The Edge, Dark Reading's new section for features, threat data, and in-depth perspectives. Today's top story: "How to Keep Security on Life Support After Software End-of-Life."

Dark Reading's Quick Hits delivers a brief synopsis and summary of the significance of breaking news events. For more information from the original source of the news item, please follow the link provided in this article. View Full Bio

Comment  | 
Print  | 
More Insights
Comments
Newest First  |  Oldest First  |  Threaded View
Register for Dark Reading Newsletters
White Papers
Video
Cartoon Contest
Current Issue
6 Emerging Cyber Threats That Enterprises Face in 2020
This Tech Digest gives an in-depth look at six emerging cyber threats that enterprises could face in 2020. Download your copy today!
Flash Poll
State of Cybersecurity Incident Response
State of Cybersecurity Incident Response
Data breaches and regulations have forced organizations to pay closer attention to the security incident response function. However, security leaders may be overestimating their ability to detect and respond to security incidents. Read this report to find out more.
Twitter Feed
Dark Reading - Bug Report
Bug Report
Enterprise Vulnerabilities
From DHS/US-CERT's National Vulnerability Database
CVE-2020-8423
PUBLISHED: 2020-04-02
A buffer overflow in the httpd daemon on TP-Link TL-WR841N V10 (firmware version 3.16.9) devices allows an authenticated remote attacker to execute arbitrary code via a GET request to the page for the configuration of the Wi-Fi network.
CVE-2019-14868
PUBLISHED: 2020-04-02
In ksh version 20120801, a flaw was found in the way it evaluates certain environment variables. An attacker could use this flaw to override or bypass environment restrictions to execute shell commands. Services and applications that allow remote unauthenticated attackers to provide one of those env...
CVE-2019-20635
PUBLISHED: 2020-04-02
codeBeamer before 9.5.0-RC3 does not properly restrict the ability to execute custom Java code and access the Java class loader via computed fields.
CVE-2020-11452
PUBLISHED: 2020-04-02
Microstrategy Web 10.4 includes functionality to allow users to import files or data from external resources such as URLs or databases. By providing an external URL under attacker control, it's possible to send requests to external resources (aka SSRF) or leak files from the local system using the f...
CVE-2020-11453
PUBLISHED: 2020-04-02
Microstrategy Web 10.4 is vulnerable to Server-Side Request Forgery in the Test Web Service functionality exposed through the path /MicroStrategyWS/. The functionality requires no authentication and, while it is not possible to pass parameters in the SSRF request, it is still possible to exploit it ...