The House Financial Services Committee advanced legislation this week seeking to strengthen cybersecurity efforts of the financial services industry.
The Strengthening Cybersecurity for the Financial Sector Act of 2022, introduced by U.S. Rep. Bill Foster (D-IL), would empower the National Credit Union Administration (NCUA) and the Federal Housing Finance Agency (FHFA) to oversee third party vendors employed by the entities under their purview.
“Hard-working Americans deserve peace of mind that their money and their data are safe with their credit union or mortgage servicer,” Foster said. “Federal regulators should have the power to thoroughly scrutinize financial institutions’ third-party vendors’ technology systems to ensure they are secure against the growing threat of cyberattacks. The damage that can result from supply-chain cyberattacks like “Solar Winds,” and third-party vendors in our financial system represent alluring targets.”
Foster said the legislation would make the entire banking system safer and will go a long way to protect sensitive consumer information.
The authority was previously temporarily granted to the NCUA and FHFA but has since expired. The circumstance leaves a regulatory gap while leaving consumers and families at risk.
Foster said the legislation would provide parity amongst the nation’s regulators, ensuring financial services and housing industries are protected against cyberattacks.