Federal Reserve Warned Over Security Lapses After Suspected Data Breach

The Federal Reserve's Office of Inspector General has identified 'breakdowns and deficiencies' in security controls following a suspected data breach. The incident centered around a departing employee in July 2024, who was accused of removing sensitive information from the institution.

In the 90 days leading up to their departure, 279 data loss prevention alerts were logged, with 111 potentially involving information related to the Federal Open Market Committee and 40 containing central bank material.

The inspector general's report urges immediate improvements to information security controls at the Fed, prompting agreed procedural upgrades but no formal misconduct investigation.