Treasury report warns cloud financial services need more cybersecurity and transparency

February 8 (UPI) — The U.S. Treasury Department released a report Wednesday warning that more work is needed to mitigate the risks associated with moving financial services to the cloud.

While the report does not include any requirements for cloud financial services, nor does it endorse or encourage the use of any particular provider or service, the department said it believes more proactive response to cybersecurity incidents is needed, most likely , more staff support and more transparency will be needed.

“There is no doubt that providing consumers with safe and secure financial services means increasing demand for cloud computing,” said Deputy Treasury Secretary Wally Adeyemo. in a statement. “The Treasury is committed to working with financial regulators, industry partners and cloud service providers to ensure greater collaboration and transparency. By building trust, collaboration and collaboration from the start, we can facilitate safe and efficient migration for financial institutions that choose to adopt cloud services.”

The Ministry of Finance also announced the formation of a Cloud Services Steering Group next year to strengthen collaboration between regulators and the private sector in cloud financial services.

The Steering Group will work to implement the recommendations, including greater internal collaboration among US cloud regulators, additional tabletop exercises with the private sector, and the development of best practices for the Cloud Adoption Framework and Cloud Contracts.

The report noted “a lack of transparency to ensure due diligence and monitoring by financial institutions” and “gaps in the human capital and tools needed to securely deploy cloud services.”

He also highlighted concerns about cyber vulnerabilities as financial institutions raised concerns that a security incident at one cloud service provider could spread to the wider financial sector.

“While cloud services may have potential resiliency and security benefits, financial institutions are still exposed to risks associated with technical vulnerabilities in CSP and face practical challenges in mitigating such risks or outsourcing their operations,” the statement said. Ministry of Finance. .

The report notes that the current cloud financial services market is concentrated around a small number of CSPs, and if an incident occurs, it could “affect many financial sector customers simultaneously.”

According to the report, a patchwork of global regulatory approaches “may make it nearly impossible for U.S. financial institutions to consistently adopt cloud computing globally, reducing the use of CSPs in the market and increasing the costs of cloud adoption strategies, ultimately impacting consumers.”

The Ministry of Finance report on the benefits and challenges of cloud financial services was developed with the participation of members of the Financial and Banking Information Infrastructure Committee.

According to the Treasury Department, it was developed with the active participation of US financial regulators, trade associations, think tanks and private sector stakeholders.

Content Source

News Press Ohio – Latest News:
Columbus Local News || Cleveland Local News || Ohio State News || National News || Money and Economy News || Entertainment News || Tech News || Environment News

Related Articles

Back to top button