Officials accused of cover-up over likely China hack of FDIC

Officials accused of cover-up over likely China hack of FDIC

China likely hacked computers at the Federal Deposit Insurance Corporation (FDIC) between 2010 and 2013 and the attacks were covered up by staffers at the regulator, according to a Congressional report.

The House of Representative's Science, Space and Technology Committee's report says that in 2010, 2011 and 2013 the Chinese government is believed to have hacked a dozen FDIC computers, including those used by high level officials such as the former chairman.

When an internal FDIC investigation identified China as the likely force behind the attacks, it was covered up to protect chairman Martin Gruenberg, suggests the congressional report.

"The committee's interim report sheds light on the FDIC's lax cyber security efforts," says Lamar Smith, the Republican representative from Texas who chairs the committee. "The FDIC's intent to evade congressional oversight is a serious offense."

The investigation uncovered other security breaches at the regulator, including two instances in the last year when employees copied sensitive data on thousands of people onto portable storage devices.

The report says FIDC was unwilling "to be open and transparent with the committee’s investigation,” adding that this raises "serious concerns about whether the agency is still attempting to shield information from production to Congress."

Gruenberg is slated to testify at a committee hearing on Thursday.

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