House Financial Services Committee Chairman Patrick McHenry (R-NC) and U.S. Representative Brittany Pettersen (D-CO) have reintroduced the bipartisan Ransomware and Financial Stability Act, aimed at protecting America's critical financial infrastructure from ransomware attacks. The legislation seeks to deter hackers and establish guidelines for financial institutions to respond to such cyber threats effectively.
Chairman McHenry emphasized the importance of the bill, stating, "Ransomware attacks pose a serious threat to the stability of our financial system." He highlighted that the Ransomware and Financial Stability Act will aid in deterring, denying, and tracking down cybercriminals who target the financial infrastructure essential for daily economic activities. McHenry expressed pride in collaborating with Congresswoman Pettersen to reintroduce the bill and hold bad actors accountable.
Rep. Pettersen, a member of the House Financial Services Committee, echoed the concerns around ransomware attacks, noting, "For years, criminals have been utilizing ransomware to scramble organization’s data and then blackmail them into paying ransoms before releasing the information." She emphasized the potential devastating impacts of such attacks on the financial system and underscored the need for intervention to safeguard the economy and American consumers.
The Ransomware and Financial Stability Act focuses on key aspects to enhance cybersecurity measures within critical financial institutions. It specifically targets Financial Market Utilities, large securities exchanges, and certain technology service providers essential for banks’ core processing services. Additionally, the bill mandates covered entities to notify the Treasury Department before making any ransomware payments. It also sets a deterrence mechanism by prohibiting large ransomware payments exceeding $100,000 without proper authorization.
Moreover, the legislation ensures legal clarity for institutions responding to cyberattacks by keeping reports confidential and providing a safe harbor for financial institutions in assessing cybersecurity incidents or complying with ransomware payment authorizations.
The reintroduction of the Ransomware and Financial Stability Act reflects a bipartisan effort to address the growing threat of ransomware attacks on America's critical financial infrastructure. The bill aims to strengthen cybersecurity measures, deter hackers, and protect the economy and consumers from the potentially devastating consequences of cyber threats.