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Cyber-Crime Warning from Goldman Sachs Group and Citigroup

Posted in Markets2 years ago • Written by Jenny LambNo Comments

Cyber-Crime Warning from Goldman Sachs Group and Citigroup

As cyber-attack becomes common and frightful; and US banks and agencies try to strengthen their defenses, Goldman Sachs Group Inc. and Citigroup Inc. steps up to warm their shareholders.

Last week in their yearly regulatory filings, these two New York grounded organizations said that to seal the vulnerability to public access, their online and cell phone banking options give points of entry to disrupt the operation process. They accept that the online options are open to various public accesses which mostly result in disruption of nation’s latest banks last year.

According to the speculations of US banks, these cyber-attacks are done by foreign nations with planned crime and terrorists to cripple down the websites. With help of entry point warning at time of online access, people will be able to keep stalkers at bay successfully. On Feb 12th, Obama had directed the government to design proper security standards for organizations that deal in vital information and infrastructure, and is on the process of setting it as a formal rule at the earliest.

“We are aware that these hackers can steal the personal information of people; we know that they can swipe in our national secrets also. But now these cyber-hackers are trying to damage our financial network” Obama said in his speech.

Chairman of Ponemon Institute LLC, , Lawrence Ponemon states that more cyber-crimes will be seen in coming days. With more disclosures, it’s a warning indication that things are getting more adverse in coming days. According to their report, it is revealed that there will be an elevation of 30 percent expense in cybercrime this year.

According to two executives of security companies, the cyber attacks in December had hit the Bank of America Corp. (BAC), JPMorgan Chase & Co. (JPM), U.S. Bancorp, Wells Fargo & Co. (WFC) and SunTrust Banks Inc. (STI) badly. On the other hand, representative from PNC Financial Services Group Inc, one of the biggest regional banks, accepts that these cyber-attacks are quite harmful in damaging the confidences of customers, which also increases the cost in turn.

Cyber-attacks are not only limited to financial organizations; on Feb 22nd, Microsoft revealed that some of its computers also got hacked by harmful viruses in a cyber-attack which is similar to that of Facebook Inc. and Apple Inc. In the last few years, cyber-crime has gained new attention after the revelation of breach in a U.S Federal Reserve security website. It was anticipated that this security breach was organized by Chinese hackers which had the whole market of US banks and financial networks disrupted.

The cybercrime tactic floods a website with traffic, thus disrupting it by blocking access to cash and personal data. Banks and institutes were warned in December that these attackers might use this process to block customer’s usage, sharing of information and divert attention of account staffs.

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