JPMorgan, BNY Mellon Halt Data Sharing with OCC After Major Security Breach

Two prominent financial institutions, JPMorgan Chase and Bank of New York Mellon (BNY Mellon), have abruptly halted electronic data sharing with the Office of the Comptroller of the Currency (OCC), a leading bank regulator in the US. This decision follows a severe security breach that compromised the OCC's email system, exposing highly sensitive information related to the financial condition of federally regulated financial institutions.

The OCC has confirmed the incident, classifying it as a "major information security incident" and informing Congress. The breach involved unauthorized access to the emails of several OCC executives and employees, revealing confidential details about terrorism, espionage, and other investigations. In consultation with the Department of the Treasury, the OCC determined that the incident met the criteria for a "major incident," necessitating immediate and comprehensive action.

JPMorgan Chase and BNY Mellon have not issued any comments on the matter. However, an OCC spokesperson stated that the agency is actively collaborating with cybersecurity experts to analyze the breach and assess its IT systems. The OCC is dedicated to keeping its supervised institutions informed as investigations proceed, ensuring that onsite examiners retain access to necessary bank information while maintaining data security.

This incident underscores critical concerns about the security measures in place at regulatory bodies and the potential vulnerabilities that could be exploited by malicious actors. The OCC's prompt response and collaboration with cybersecurity experts are crucial steps in mitigating the damage and preventing future breaches. As investigations continue, the financial industry will closely monitor developments to understand the full extent of the breach and its implications for regulatory oversight and data security.