With regulators paying close attention to how third-party vendors manage data, financial firms must do a better job of evaluating their vendor's information security, experts said.
Security weaknesses at third-party vendors came to the fore last week when the Wall Street Journal reported that the Federal Deposit Insurance Corporation sent Fidelity National Information Services Inc. (FIS) a critical letter about its internal practices.
FIS, which bills itself as the world's largest provider of banking and payments technologies, drew the concern of regulators after it suffered a breach in 2011, which cost the company $12.7 million in fraud related losses. It followed high profile breaches at Citigroup Inc, and credit card processor Global Payments Inc.
The FDIC letter did not cite specific technology lapses at FIS, the Journal said. FIS has been reported as saying it was fully committed to resolving security issues.
Financial institutions should conduct background checks on
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