The new Complex Investigations and Intelligence (CII) team and Cyber and Analytics Unit (CAU) are driving a shift in terms of how Member Supervision’s National Cause and Financial Crimes Detection Program comes at its work and leverages intelligence and analytics to drive decision making and operations. On this episode, we hear how these changes will help FINRA better deliver on its mission of investor protection, market integrity.
Given the evolving nature, increasing frequency, and mounting sophistication of cybersecurity attacks – as well as the potential for harm to investors, firms, and the markets – cybersecurity practices are a key focus for firms and FINRA.
FINRA evaluates firms’ approaches to cybersecurity risk management through reviews of their controls in areas including: technology governance, risk assessment, technical controls, access management, incident response, vendor management, data loss prevention, system change management, branch controls and staff training. Through these reviews, FINRA also assesses a firm’s ability to protect the confidentiality, integrity, and availability of sensitive customer information.
These pages are designed to assist a firm in building out its cybersecurity program by addressing the individual risks and discussing related controls needed to protect customer and firm confidential data. FINRA has updated this Cybersecurity page to include the following resources:
- In case of a Disruptive Attack or Breach
- Common Cybersecurity Threats
- Events
- Reports
- Compliance Tools
- FINRA Cybersecurity Contact
In Case of a Disruptive Attack or Breach
Firms should get to know their local Federal Bureau of Investigation (FBI) and proactively plan for a cybersecurity attack or breach.
In case your firm is the victim of a disruptive attack or breach, for instance your data has been accessed or your customers cannot do business, you should immediately report the incident to your:
If you need RANSOMWARE assistance, one helpful resource is CISA’s Stop Ransomware!
Unsuccessful and successful cyber-related incidents could require that a SAR be filed, for more information visit The Financial Crimes Enforcement Network (FinCEN)’s guidance.
Common Cybersecurity Threats
This section highlights some of the common cybersecurity threats faced by broker-dealers. In a number of cases, FINRA has observed that different types of attacks were coordinated and overlapped.
- Phishing
- Imposter Websites
- Malware
- Customer Account Takeover (ATO)
- Firm Account Compromise or Takeover
- Fraudulent Wires or ACH Transactions
- Ransomware
- Distributed Denial-of-Service (“DDoS”) Attacks
- Vendor Breaches
Learn more about common cybersecurity threats
Events
Upcoming Events
2022 FINRA Annual Conference - May 16-18
Washington, DC| Hybrid Event
FINRA's premier event—the Annual Conference provides the opportunity for practitioners, peers and regulators to exchange ideas on today's most timely compliance and regulatory topics.
Past Events
2022 Cloud Computing Conference
March 30
This one-day conference brings together regulators, thought leaders and industry practitioners to discuss the use of Cloud Computing, and related opportunities and challenges.
2022 Cybersecurity Conference
March 29
FINRA’s Cybersecurity Conference helps you stay current on today’s cybersecurity challenges and the ways in which organizations can understand vulnerabilities and threats, and create resilience against cyber attacks.
FINRA Small Firm Conference: Cybersecurity Straight Talk
It is crucial that small financial firms take proper cybersecurity measures to protect their clients and firm. Join FINRA staff and industry panelists as they discuss the “why” behind threat-informed effective practices applicable to small firms, and how they can fit cybersecurity into their already overloaded schedule.
Moderator: David (Dave) Kelley, FINRA Member Supervision
Panelists: Peter Falco, Financial Services Information Sharing and Analysis Center (FS-ISAC) Jennifer Szaro, CRCP®, XML Securities, LLC
2021 FINRA Virtual Technology Conference
June 23, 2021
Join FINRA cybersecurity leaders as they discuss the current state of cybersecurity and the ever-changing threat landscape. The conversation will focus on three facets of FINRA’s cybersecurity initiatives: how FINRA secures its own systems, unique security features of the Consolidated Audit Trail (CAT) system, and how FINRA supports member firms’ cybersecurity programs.
2021 Report on FINRA’s Examination and Risk Monitoring Program
The Cybersecurity and Technology Governance section of the 2021 Report on FINRA’s Risk Monitoring and Examination Activities (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) relevant regulatory obligations and related considerations, (2) exam findings and effective practices, and (3) additional resources.
Compliance Tools
Small Firm Cybersecurity Checklist
FINRA has created a Checklist for a Small Firm's Cybersecurity Program to assist small firms in establishing a cybersecurity program.
Compliance Vendor Directory (CVD)
In an effort to provide enhanced compliance tools and resources, FINRA has developed the Compliance Vendor Directory (CVD). The FINRA CVD is designed to give firms more options in locating vendors that provide compliance-related offerings, including cybersecurity vendors and services.
Core Cybersecurity Threats and Effective Controls for Small Firms
This tool helps small firms enhance their customer information protection, and cybersecurity written supervisory programs and related controls by (1) highlighting the most common and recent categories of cybersecurity threats; (2) providing a summary of effective core controls; and (3) listing relevant terms and additional resources.
Report on Selected Cybersecurity Practices
The Report on Selected Cybersecurity Practices – 2018 is a detailed review of effective information-security controls at securities firms. The report is designed to help broker-dealers – including small firms – further develop their cybersecurity programs. The report addresses areas that firms tend to find most challenging: cybersecurity controls in branch offices; methods of limiting phishing attacks; identifying and mitigating insider threats; elements of a strong penetration-testing program; and establishing and maintaining controls on mobile devices.
Report on Cybersecurity Practices
In 2014 and 2011, FINRA reviewed firms' cybersecurity practices to better understand the types of cybersecurity threats firms face and how they counter these threats. This report highlights effective practices in the industry and discusses a risk management-based approach to cybersecurity.
Non-FINRA Resources
FINRA has assembled a list of industry and governmental cybersecurity resources that firms may use to manage their cybersecurity risk.
FINRA Rules Related to Cybersecurity
- 3110. Supervision
- 3120. Supervisory Control System
- 4530(b). Reporting Requirements
- Supplementary Material 4530.01. Reporting of Firms' Conclusions of Violations
SEC Rules Related to Cybersecurity
- 248.201-202. Regulation S-ID: Identity Theft Red Flags
- 248.1-100. Regulation S-P: Privacy of Consumer Financial Information and Safeguarding Personal Information
- 240.17a-4(f). The Securities Exchange Act of 1933 (17 CFR §240.17a-4(f)) requires firms to preserve electronically stored records in a non-rewriteable, non-erasable format.
- FINRA Alerts Firms to “Log4Shell” Vulnerability in Apache Log4j Software
- FINRA Alerts Firms to a Phishing Email Campaign Using Multiple Imposter FINRA Domain Names
- FINRA Reminds Firms of their Supervisory Obligations Related to Outsourcing to Third-Party Vendors
- FINRA Alerts Firms to Phishing Email From “FINRA Support” From the Domain Name “westour.org”
- FINRA Alerts Firms to Phishing Email Using “gateway-finra.org” Domain Name
- FINRA Shares Practices Firms Use to Protect Customers From Online Account Takeover Attempts
- FINRA Alerts Firms to Recent Increase in ACH “Instant Funds” Abuse
- FINRA Alerts Firms to Phishing Email Using “finra-online.com” Domain Name
- FINRA Alerts Firms to Phishing Email Using Invest-FINRA.org Domain Name
- Cybersecurity Background: Authentication Methods
- FINRA Alerts Firms to Phishing Email Requesting Them to Respond to Fraudulent FINRA Survey
- FINRA Reminds Firms to Be Aware of Fraudulent Options Trading in Connection With Potential Account Takeovers and New Account Fraud
- Fraudsters Using Registered Representatives Names to Establish Imposter Websites
- FINRA Alerts Firms to Use of Fake FINRA Domain Name
- FINRA Reminds Firms to Beware of Fraud During the Coronavirus (COVID-19) Pandemic
- FINRA Warns of Fraudulent Phishing Emails Purporting to be from FINRA
- Cybersecurity Alert: Measures to Consider as Firms Respond to the Coronavirus Pandemic (COVID-19)
- Cybersecurity Alert: Cloud-Based Email Account Takeovers
- Imposter Websites Impacting Member Firms
- FINRA Warns of Fraudulent Phishing Emails Targeting Member Firms
- Distributed Denial of Service (DDoS) Attacks on Member Firms
- FINRA Warns Firms of Hoax Emails That Purport to Be From Regulators
- Verification of Emailed Instructions to Transmit or Withdraw Assets From Customer Accounts
- Members' Responsibilities When Outsourcing Activities to Third-Party Service Providers
- Media CenterAugust 09, 2022
- GuidanceThis email is to warn member firms of an ongoing phishing campaign that involves fraudulent emails purporting to be from FINRA and using either the domain name “@firms-finra.org” or “@firms-sipc.org”. Neither of these domains is connected to FINRA and firms should delete all emails originating from these domain names.June 16, 2022
- Guidance
FINRA’s National Cause and Financial Crimes Detection (NCFC) Cyber and Analytics Unit (CAU) has noted a recent alert issued by Microsoft on May 30, 2022.
June 03, 2022 - GuidanceThe Cyber and Analytics Unit (CAU) within FINRA’s National Cause and Financial Crimes Detection (NCFC) program would like to highlight an alert issued by the Cybersecurity & Infrastructure Security Agency (CISA) on April 20, 2022.May 02, 2022
- GuidanceOn April 25, FINRA issued an alert to member firms which highlighted a phishing attack using the domain name “@claims-finra.org”. This alert is to warn you about a new, potentially related, phishing attack also purporting to be from FINRA.April 27, 2022
- GuidanceThis email is to warn member firms of an ongoing phishing campaign that involves fraudulent emails purporting to be from FINRA and using the domain name “@claims-finra.org.” The domain of “claims-finra.org” is not connected to FINRA and firms should delete all emails originating from this domain name.April 25, 2022
- Technical NoticeFINRA is aware of the critical Spring4Shell vulnerability and has taken immediate steps to neutralize the risk.April 04, 2022
- Guidance
The Cyber and Analytics Unit (CAU) within FINRA’s National Cause and Financial Crimes Detection (NCFC) program is highlighting a statement released today by President Biden regarding possible threats to our nation’s cyber security, urging private sector companies to remain vigilant and harden their cyber defenses "immediately" based on "evolving intelligence that the Russian Government is exploring options for potential cyberattacks." The President
March 21, 2022 - Guidance
The Cyber and Analytics Unit (CAU) within FINRA’s National Cause and Financial Crimes Detection (NCFC) program would like to bring an important cyber-related development to your attention. The Cybersecurity & Infrastructure Security Agency (CISA) and the FBI issued a “Shields Up” warning this week regarding potential Russian cyberattacks to target U.S. organizations related to Russia’s potential destabilizing actions against Ukraine. CISA advised that while there are not currently any specific credible threats to the U.S., they recommend that all organizations, namely U.S.
February 15, 2022 - 2022 Report on FINRAs Examination and Risk Monitoring ProgramThe Anti-Money Laundering section of the 2022 Report on FINRA’s Risk Monitoring and Examination Activities (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) relevant regulatory obligations and related considerations, (2) exam findings and effective practices, and (3) additional resources.February 09, 2022
- 2022 Report on FINRAs Examination and Risk Monitoring ProgramThe Cybersecurity and Technology Governance section of the 2022 Report on FINRA’s Risk Monitoring and Examination Activities (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) relevant regulatory obligations and related considerations, (2) exam findings and effective practices, and (3) additional resources.February 09, 2022
- Report / Study
Cloud computing is transforming how broker-dealers operate by providing opportunities to enhance agility, efficiency, resiliency and security within firms’ technology and business operations while potentially reducing costs. As a result, cloud computing is increasingly seen by many firms as an important architectural component to their infrastructure.
August 16, 2021 - Compliance Tools
Protecting investors means protecting their data, too. Our Small Firm Cybersecurity Checklist supports small firms in establishing a cybersecurity program to:
July 12, 2021 - 2021 Report on FINRAs Examination and Risk Monitoring ProgramThe Anti-Money Laundering (AML) section of the 2021 Report on FINRA’s Risk Monitoring and Examination Activities (the Report) informs member firms’ compliance programs by providing annual insights from FINRA’s ongoing regulatory operations, including (1) relevant regulatory obligations and related considerations, (2) exam findings and effective practices, and (3) additional resources.February 01, 2021
- PodcastFirm regulatory risks and priorities don't exist in a vacuum. And that is perhaps nowhere clearer than when it comes to a firm's anti-money laundering responsibilities. A firm's AML risks can overlap with any number of other priorities. On this episode, the first of a two-part series, we look at the overlapping risks of AML and cybersecurity.October 27, 2020
- PodcastBetween the level of interconnectedness on the web and the sheer about of data available, we’re living in an era ripe for the perpetration of financial fraud. That makes it more important than ever for FINRA to have a holistic view of emerging trends and risks—and the ability to coordinate closely with other regulators and law enforcement. FINRA’s new National Cause and Financial Crimes Detection Programs (NCFC) will be the nerve center to do just that.May 26, 2020
- Virtual Conference PanelJoin FINRA staff and industry panelists as they provide examples of effective controls and tools their firms have put into place to monitor and address cybersecurity risks.May 19, 2020
- 2019 Exam Findings ReportThe Observations on Cybersecurity section of the 2019 Report on Exam Findings informs member firms’ compliance programs by describing recent findings and observations from FINRA’s examinations, and, in certain cases, also providing a summary of effective practices.October 16, 2019
- Guidance
This article highlights some of the common cybersecurity threats faced by broker-dealers. In a number of cases, FINRA has observed that different types of attacks were coordinated and overlapped.
July 09, 2019 - A Few Minutes With FINRAFINRA’s Senior Vice President of Member Relations and Education Chip Jones, leads a discussion with Chief Information Security Officer John Brady, Senior Director Steve Polansky and Kansas City Surveillance Director Dave Kelley, on FINRA’s 2018 report on selected cybersecurity practices. The discussion includes an overview of the report, which highlights effective practices in five challenging areas that firms should consider to strengthen and further develop their cybersecurity programs—as well as core cybersecurity controls for small firms. (30 min. 17 sec.)December 20, 2018
- PodcastCybersecurity is a major challenge for everyone – but it can be a particularly big challenge for those in the financial industry. That’s why FINRA released a new report highlighting effective cybersecurity practices for FINRA member firms. Learn more in this episode of FINRA Unscripted.December 20, 2018
- Report / Study
This report continues FINRA’s efforts to share information that can help brokerdealer firms further develop their cybersecurity programs. Firms routinely identify cybersecurity as one of their primary operational risks. Similarly, FINRA continues to see problematic cybersecurity practices in its examination and risk monitoring program. This report presents FINRA’s observations regarding effective practices that firms have implemented to address selected cybersecurity risks while recognizing that there is no one-size-fits-all approach to cybersecurity.
December 01, 2018 - PodcastIn an era when much of our lives happen online, cybersecurity is more important than ever. But what do you do to protect your personal information? We all have a role to play in keeping ourselves secure. This National Cybersecurity Awareness Month, tune in to learn more about how you can keep yourself, your family and your clients safe online.October 23, 2018
- PodcastFrom banking and investing to social media and shopping, the internet is an essential part of our daily lives. That means cybersecurity is more important than ever. That is particularly true for FINRA, which can process up to 99 billion records in a single day. Here, John Brady explains how FINRA stays cyber secure.February 27, 2018
- VideoCybersecurity experts and regulators gathered in New York City on February 22, 2018 to focus on key ways the financial services industry can maintain cybersecurity.February 26, 2018
- 2017 Exam Findings ReportThe Cybersecurity section of the 2017 Report on Exam Findings informs member firms’ compliance programs by describing recent findings and observations from FINRA’s examinations, and, in certain cases, also providing a summary of effective practices.December 06, 2017
- Compliance ToolsFINRA has assembled a list of resources that firms may use to manage their cybersecurity risk. These resources include: news and analysis; effective practices and guidance; and free diagnostic tools...October 25, 2016
- Compliance ToolsFINRA has created a checklist to assist small firms in establishing a cybersecurity program.May 23, 2016
- GuidanceFINRA is conducting an assessment of firms’ approaches to managing cyber-security threats. FINRA is conducting this assessment in light of the critical role information technology (IT) plays in the securities industry, the increasing threat to firms’ IT systems from a variety of sources, and the potential harm to investors, firms, and the financial system as a whole that these threats pose.January 01, 2014
- Compliance Tools
Overview – The following tool identifies key cybersecurity risks currently facing small firms and helps them enhance their customer information protection, and cybersecurity written supervisory programs (WSPs) and related controls, including:
- Compliance ToolsWhat should your firm do after it discovers that customers’ accounts have been compromised?
- February 09, 2022
- August 16, 2021
- December 20, 2018
- December 21, 2016
- November 16, 2015
- February 03, 2015
- January 26, 2012
- October 05, 2009
- April 28, 2009
- May 12, 2008
- Investor EducationWhile impersonation scams are not new, surprising new variants arise every day. Regulators have observed an increase in cyber-related incidents, including fraudsters creating fake websites using the names and professional details of actual industry professionals (who have no connection to the imposter sites).
- Investor AlertYour brokerage firm has an obligation to safeguard your personal financial information. And every investor should take time to understand their firm’s cybersecurity procedures. But even the best procedures cannot prevent all instances of identity theft—especially if the vulnerability lies with you, the customer. Here are critical steps you can take to safeguard your financial accounts and help prevent identity theft.
- Investor AlertFINRA is updating this Alert to tell you about some of the latest online identify theft scams targeting financial sector customers and to provide tips for spotting and avoiding these scams.
- Investor EducationUse this checklist to safeguard your sensitive information and help keep identity thieves at bay.