Fed Watchdog Warns of Potential Security Risks After Classified File Breach

The Federal Reserve's internal watchdog has issued a warning to the central bank about potential security risks after a departing employee possibly removed classified information. This warning came in a management alert as part of an audit into the off-boarding process for employees who are leaving the Fed.

An example cited by the Office of Inspector General was an employee in the Division of International Finance, who announced their retirement plans and desire to remove files before leaving in February 2024. The employee's name was not disclosed in the alert.