New York Fed creates cyber squad

The Federal Reserve Bank of New York has formed a unit exclusively dedicated to thwarting cybersecurity threats.

“Suffice it to say that as I think about the kinds of risks that might cause the next crisis, cybersecurity is the one that worries me the most,” said Sarah Dahlgren, the New York Fed’s top regulator, according to prepared remarks made Wednesday at an industry conference.

{mosads}In an attempt to stave off the next crisis, the bank is forming “a dedicated team focused on further strengthening our overall supervisory approach to cybersecurity,” Dahlgren added.

The team will establish a new cybersecurity assessment framework for bank examinations. It could also create “additional standards that might be set out for supervised institutions,” Dahlgren added.

Pressure has risen on the banking industry to staunch the rising tide of cyberattacks.

Despite the reputation as a leading industry when it comes to cyber defense, banks have been repeatedly breached by digital hits in the last year. A data breach at JPMorgan Chase exposed 76 million households information in 2014.

The U.S. central banking system has become more aggressive in its cyber oversight in recent months. The head of the Federal Reserve Bank of Boston has urged banks to adopt defense grade cybersecurity levels.

Dahlgren acknowledged that cybersecurity is “at the top” of the list of “things that keep me awake at night.”

“I’m sure it is for many of you in this room,” she said to the audience of bankers.