Fed Watchdog Sounds Alarm Over Potential Classified File Breach
The Federal Reserve's internal watchdog has sounded an alarm over potential security breaches involving classified information. According to a management alert issued by the Office of Inspector General, a departing employee in the Division of International Finance may have removed sensitive files before leaving the bank.
The audit found that the employee had announced their retirement plans and desire to remove files in February 2024, raising concerns about the central bank's oversight of classified information. The employee was not named in the alert.
The management alert is part of an ongoing audit into the off-boarding process for departing employees at the Federal Reserve. The watchdog is warning that the central bank needs to tighten its controls on classified information to prevent similar breaches in the future.