http://www.hstoday.us/single-article/despite-progress-in-securing-key-fdic-financial-systems-weaknesses-remain-audit-finds/01788f2cf606f9c2585979bb585f8153.html



Despite Progress in Securing Key FDIC Financial Systems, Weaknesses Remain,
Audit Finds

By: Homeland Security Today Staff

07/22/2014 ( 7:46am)

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The Federal Deposit Insurance Corporation (FDIC) has implemented numerous
information security controls that are intended to secure its key financial
systems, but “weaknesses place the confidentiality, integrity and
availability of financial systems and information at unnecessary
risk,” concluded
a recent audit by the Government Accountability Office
<http://www.gao.gov/assets/670/664840.pdf> (GAO).



“During 2013, the corporation implemented 28 of the 39 open GAO
recommendations pertaining to previously-reported security weaknesses that
were unaddressed as of December 31, 2012,” GAO’s audit report to Congress
stated.



According to GAO, “FDIC had not fully implemented controls for identifying
and authenticating the identity of users, restricting access to sensitive
systems and data, encrypting sensitive data, completing background
reinvestigations for employees and auditing and monitoring system access.”



GAO said “An underlying reason for many of these weaknesses is that FDIC
did not fully or consistently implement aspects of its information security
program.”



Specifically, GAO found that FDIC did not:

   - Fully document and implement information security controls;
   - Ensure that employees and contractors received security awareness
   training;
   - Conduct ongoing assessments of security controls for all systems; and
   - Remediate agency identified weaknesses in a timely manner.





“These weaknesses individually or collectively do not constitute either a
material weakness or a significant deficiency for financial reporting
purposes,” GAO reported. “Nevertheless, unless FDIC takes further steps to
mitigate these weaknesses, the corporation's sensitive financial
information and resources will remain exposed to unnecessary risk of
inadvertent or deliberate misuse, improper modification, unauthorized
disclosure or destruction.



Because FDIC has responsibility for enforcing banking laws, regulating FDIC
insured financial institutions and protecting depositors, “the importance
of FDIC's work [and] effective information security controls are essential
to ensure that the corporation's systems and information are adequately
protected from inadvertent or deliberate misuse, improper modification,
unauthorized disclosure or destruction,” GAO stressed.



GAO “recommended four actions for FDIC to enhance its information security
management program.”



FDIC concurred with GAO's recommendations.



In a separate report with limited distribution, GAO recommended FDIC take
21 specific actions to address weaknesses in its identified security
controls.




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