Cybersecurity

Firms including Betterment, Coinbase and TransferWise have told customers that despite a bug affecting the content delivery network Cloudflare, their data is safe.

Banks are woefully unprepared to face potential cybersecurity threats stemming from third-party technology providers, according to a report issued Wednesday by the Federal Deposit Insurance Corp.’s independent watchdog.

In the years ahead, banks will have to fend off better organized and increasingly advanced cybercrime rings. "We're seeing levels of sophistication that we haven't seen before," says Pat Phelan, senior vice president of identity at TransUnion.

The latest cyberattacks on banks (and others including the Democratic National Committee) can no longer be found by traditional means, as they lurk in memory and necessary computing tools.

Quickly keeping customers informed about an attack is among the principles banks must adopt to mitigate the fallout.