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Third-Party Processors Increasingly At Risk

FINANCIAL PRIVACY

June 6, 2012

Following a report criticizing its risk practices, a Florida company that helps 14,000 financial institutions process transactions and track customer accounts is increasing its security. The letter to Fidelity National Information Services (FIS) from the Federal Deposit Insurance Corp. (FDIC) followed an examination by the FDIC, the Federal Reserve Bank of Atlanta and the Office of the Comptroller of Currency on oversight issues at FIS after a 2011 breach that resulted in at least $12.7 million in fraud. FIS says since then it has hired three executives to handle security. Hackers are increasingly targeting third-party service providers such as FIS, reports The Wall Street Journal. (Registration may be required to access this story.)
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