U.S. Banks Warned to Guard Against Y2K Fraud

Updated 4:29 PM ET November 19, 1999

WASHINGTON (Reuters) - Federal regulators on Friday warned banks to increase their guard against fraud artists and malicious computer hackers who may try to take advantage of the Year 2000 date rollover.

"Hackers and developers of malicious software may step up their activities at a time when it may be difficult...to detect or distinguish among a routine software or operations problem, a Year 2000-related problem and fraudulent or malicious activity," regulators advised banks and examiners.

The warning was issued by the Federal Financial Institutions Examination Council, made up of five regulators agencies including the Federal Reserve, Federal Deposit Insurance Corp, National Credit Union Administration, Office of the Comptroller of the Currency, and the Office of Thrift Supervision.

The letter reflected official concern that computer hackers might try to create mayhem around year-end by introducing "viruses" into computer networks that could spread and cause havoc while attention is diverted by the Year 2000 changeover.

It said regulators "strongly encourage financial institutions to review their security procedures" and to caution their staff to be suspicious of malicious activity or fraud.

It suggested letting only key personnel into data centers during the rollover period and similarly restricting access to telecommunications equipment and key computer workstations that might be able to gain access to critical systems.

Regulators said banks need to make sure they check their logs -- electronic or paper sign-in and sign-out books -- before and during the rollover on Dec. 31 and to be especially cautious about remote access service and computer links.

"These logs should be analyzed frequently for signs of intrusion attempts," the letter said, adding banks should quickly notify police of known or suspected criminal attempt to crack security precautions.

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Ray

-- Ray (ray@totacc.com), November 19, 1999

Answers

So the Federal Regulators want to encourage banks to follow (for the rollover period...) good standard security practices! They should be doing all of these anyway! Next thing you know, they'll be suggesting backups and contingency planning.

-- Mad Monk (madmonk@hawaiian.net), November 19, 1999.

LIBERTYVILLE (MyOwnNewsService) - Federal dissenters on Friday warned the public to increase their guard against fraud artists and malicious computer hackers who may try to take advantage of the Year 2000 date rollover -- i.e., banks.

"Banksters, users of malicious software, may step up their activities at a time when it may be difficult for the public...to detect or distinguish among a routine software or operations problem, a Year 2000-related problem and fraudulent or malicious activity," dissenters advised the public ..."

:-)

-- A (A@AisA.com), November 19, 1999.