Bank vendors' consolidation creates systemic cyber risk, OCC says

18 December 2018 11:17pm
Concentration among third-party firms that banks use for key business functions exposes the financial sector to cyberattacks that could threaten financial stability, the US Office of the Comptroller of the Currency said.

These outside vendors that perform critical functions, such as transaction processing and payments, have been subject to a growing number of cyber threats, the banking regulator said this month in a risk report.

“Increased reliance on a limited number of entities creates concentrations that increase systemic risk to the financial services sector,” the report said. “Cybercrime and espionage increasingly target third-party service providers to gain access to bank information or systems.”