02.08.23

Treasury Says Cloud Computing Poses Risks to Financial Sector

by: Andrew Duehren

The U.S. Treasury Department is warning about potential vulnerabilities caused by financial institutions relying on a small number of providers for cloud-computing services. The Treasury said in a report released Wednesday that banks and other financial institutions are increasingly using cloud services as part of a broader shift in how businesses manage their technology needs. Many are using these services for software such as email, and a smaller number are relying on it for more sensitive infrastructure such as data storage. “A large system failure or data breach at one of these [cloud-service providers] could impact multiple financial institutions or U.S. consumers, though there are open questions about the extent of that impact,” the report authors wrote.

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