Banks Coming Together To Fight Hackers, Prevent Attacks

Major banks like Morgan Stanley, Goldman Sachs Group and Bank of America are putting together plans to help identify new security threats before they happen, according to a report from the Wall Street Journal this week.

Major banks like Morgan Stanley, Goldman Sachs Group and Bank of America are putting together plans to help identify new security threats before they happen, according to a report from the Wall Street Journal this week.

The financial services firms will team up with the Polytechnic Institute of New York University to develop a new center that will sort through databases to systematically uncover potential attacks, the Journal reports.

Meanwhile, Bank of America has begun to hold “quarterly informal roundtables” where knowledgeable guests from other major banks gather to discuss future cybersecurity problems.

“We realized that just as the fraudsters collaborate with each other, we as an industry must collaborate,” said Keith Gordon, Bank of America’s senior vice president of security, in the piece.

While two or more banks collaborating against hackers may seem harmless, the concept has its share of detractors, especially those who argue banks should do this sort of data research internally, behind closed doors.
Gartner Research data predicts that banks and financial companies will spend up to $1 billion on fraud detection over the next two years alone. One of last year’s bigger data breaches occurred when Citigroup, one of the largest financial service networks, discovered that hackers made off with account information from 200,000 of its customers.

Read the full story, head to the Wall Street Journal.

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