Reserve Bank Taking Action To Respond To Data Breach Reports | Scoop News – Scoop.co.nz

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Monday, 31 May 2021, 2: 03 pm


Press Release: The Reserve Bank of New Zealand

The Reserve Bank of New Zealand – Te Pūtea Matua –
has released the findings of independent reports on an
illegal data breach and its handling of sensitive
information.

“The Bank accepts the findings and has,
and will continue to, implement the recommendations,”
Reserve Bank Governor Adrian Orr says.

“As signalled
in our Statements of Intent, we are well advanced on
multiyear investment initiatives related to our digital
systems and data management. We have prioritised these
initiatives consistent with the recommendations outlined in
the reports,” Mr Orr says.

On December 25 2020, the
Reserve Bank was the victim of a cyber-attack on the
third-party file sharing application it used to share and
store information. KPMG was subsequently engaged to complete
an independent review of the Bank’s immediate response to
the breach, and identify areas for improvements in the
Bank’s systems and processes.

“While we were the
victim of a widespread illegal attack on the file sharing
system, the Reserve Bank takes full responsibility for our
shortfalls identified in the KPMG report,” Mr Orr
says.

“We were over reliant on Accellion – the
supplier of the file transfer application (FTA) – to alert
us to any vulnerabilities in their system. In this instance,
their notifications to us did not leave their system and
hence did not reach the Reserve Bank in advance of the
breach. We received no advance warning.

KPMG outline
that there are controls and practices within the Bank that
needed to be, and are being, improved. If these practices
were in place at the time of the illegal beach the impact
would have been less,” says Mr Orr.

“I am
disappointed about the incident and the impact it has had on
people, including our own team. I am confident, however,
that we have responded with urgency, precision, and
care.

From the outset of the breach we have operated
transparently and benefitted from the support of very
capable domestic and international public sector cyber
experts, and other private sector experts. I again extend my
thanks to these people.”

“I also again extend my
apologies to all individuals and institutions that were
affected by this illegal breach. I especially thank the
Office of the Privacy Commissioner who have worked closely
with us throughout the
incident.”

Background

  • In January 2021,
    the Reserve Bank reported a data breach of a third-party
    file sharing software application – Accellion FTA – that
    was used to share and store information.
  • As part of
    the investigation into the breach the Bank engaged KPMG to
    undertake an independent review of its systems and
    processes.
  • The Bank estimates that the final cost of
    the breach response, including internal resources, will be
    around $3.5 million. All costs associated with the breach
    were covered under the Bank’s baseline budgets.
  • In
    late 2020, the Bank engaged Deloitte to undertake an
    independent investigation to help improve our handling of
    sensitive information. This followed two incidents where
    sensitive information was incorrectly stored in a draft
    internal report, and information accidentally was disclosed
    to a small group of financial services firms a short time
    before it was made public. Initiatives are also underway to
    address the recommendations in that
    report.

More information

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