{"id":37288,"date":"2020-09-23T14:54:33","date_gmt":"2020-09-23T14:54:33","guid":{"rendered":"https:\/\/packetstormsecurity.com\/news\/view\/31603\/Leaked-FinCEN-Files-Expose-Poor-Data-Security.html"},"modified":"2020-09-23T14:54:33","modified_gmt":"2020-09-23T14:54:33","slug":"leaked-fincen-files-expose-poor-data-security","status":"publish","type":"post","link":"https:\/\/www.threatshub.org\/blog\/leaked-fincen-files-expose-poor-data-security\/","title":{"rendered":"Leaked FinCEN Files Expose Poor Data Security"},"content":{"rendered":"<div><img decoding=\"async\" src=\"https:\/\/www.scmagazine.com\/wp-content\/uploads\/sites\/2\/2018\/07\/jpmorgan9_666755-e1600869079786.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<div class=\"wysiwyg\">\n<p>Leaked documents, dubbed the \u201cFinCEN Files,\u201d describe global money laundering of $2 trillion processed by many of the world\u2019s biggest banks between 2000 and 2017. The reveal &nbsp;illuminates the struggle for the financial industry and government to provide ironclad data protection.<\/p>\n<p>\u201cThis sensational and unprecedented leak clearly demonstrates a wide spectrum of data protection weaknesses in the governmental sector, affecting even the most developed Western countries,\u201d Ilia&nbsp;Kolochenko, founder and CEO of &nbsp;ImmuniWeb, said of the files.<\/p>\n<p>\u201cFrom a cybersecurity standpoint, we may expect a growing lack of trust to governmental agencies, which on one side have quasi-unlimited access to the most sensitive data of the largest organizations, while cannot duly safeguard this data on the other side,\u201d he said.<\/p>\n<p>The latest disclosure exposing apparently insufficient attempts by the public and private sectors to curb corruption came to light in a BuzzFeed News <a href=\"https:\/\/www.buzzfeednews.com\/article\/jasonleopold\/fincen-files-financial-scandal-criminal-networks?ref=hpsplash&amp;origin=spl\">report<\/a> which detailed more than 2,500 reported cases, including 2,100 Suspicious Activity Reports (SAR) filed by financial institutions with the U.S. Treasury Department\u2019s Financial Crimes Enforcement Network (FinCEN).<\/p>\n<p>JPMorgan Chase, Citigroup, Bank of America, Deutsche Bank, HSBC and Standard Chartered are among the financial institutions cited in the leaked files as processing dirty money around the world. The documents may have come from a whistleblower or insider at FinCEN. The International Consortium of Investigative Journalists (ICIJ), which represents 108 news organizations in 88 countries, is conducting a<a href=\"https:\/\/www.icij.org\/investigations\/fincen-files\/global-banks-defy-u-s-crackdowns-by-serving-oligarchs-criminals-and-terrorists\/\"> probe<\/a> of the matter.<\/p>\n<p>Other similar investigative reports on similar wrongdoing focused single financial, tax or legal institutions, such as the 2017 <a href=\"https:\/\/www.scmagazine.com\/?s=Panama+papers&amp;orderby=date&amp;order=desc\">Panama Papers<\/a> emanating from clients of the law firm Mossack Fonseca. But the FinCEN docs reveal that a wide array of people from oligarchs and corrupt politicians to drug dealers and organized crime throughout the world know how to circumvent the system\u2019s supposed checks and balances.<\/p>\n<p>To restore confidence, Kolochenko said, calling for a transparent investigation to restore confidence.<\/p>\n<p>FinCEN on Sept. 16 solicited comments solicit public comments due in 60 days on a wide range of questions pertaining to potential regulatory amendments under the Bank Secrecy Act, including FinCEN\u2019s&nbsp;Strategic Anti-Money Laundering Priorities.<\/p>\n<p>\u201cWhile this event will further erode the public\u2019s trust in both financial institutions and the government entities tasked with overseeing them, it\u2019s likely to just become something that generates noise, but no real changes that will cause any lasting impact,\u201d commented Erich Kron, security awareness advocate with&nbsp;KnowBe4.<\/p>\n<p>The most obvious ramification for the government is the loss of trust from the citizens in the ability to protect sensitive information, he added.<\/p>\n<p>As privacy concerns and the individual\u2019s knowledge of the digital footprint everyone generates increases, Kron believes it will become even more difficult for government to pass further laws requiring the use of personal information.<\/p>\n<p>Corporations are also likely to suffer.<\/p>\n<p>\u201cLooking at the current headlines related to these leaked documents, you can clearly see how just the fact that they allowed transfers of suspect funds, even though it was reported, is now being used to show them in a negative light,\u201d Kron said.<\/p>\n<p>With respect to organizations, getting them to report suspected activities will only become more difficult when these sensitive documents that they are supposed to protect are made public, reflecting on the reputation and image of the organization,\u201d he added.<\/p>\n<p>\u201cInternal actors exist in many of these organizations who are willing to continually look the other way,\u201d commented Thomas Hatch, CTO and Co-Founder at&nbsp;SaltStack. \u201cOften, it\u2019s the level of financial reliance on the inflow of funds that enables the level of widespread abuse seen in these cases,\u201d he added.<\/p>\n<p>When large sums of money are flowing, it is easy to allow the abuse to continue \u2013 the flow of these funds can have a positive impact on legitimate business. \u201cIt\u2019s very Machiavellian \u2013 less than ethical leaders are willing to allow these abuses to continue,\u201d Hatch said.<\/p>\n<p>What is most concerning to him is that when funds at this scale are being moved around, the nature of potential security issues becomes exponentially more complicated, he added.<\/p>\n<p>From a legal standpoint, Kolochenko said the organizations and other entities cited in the Buzzfeed research, may have a cause of action against many parties potentially accountable for negligent data protection and possible non-compliance with the enacted data protection laws.<\/p>\n<p>\u201cHowever, the chances to prevail in a court of law are fairly small,\u201d Kolochenko admitted. \u201cMoreover, given the extremely delicate and toxic nature of the exposed documents, they are better to discreetly settle the matter,\u201d he said, predicting a further hardening of data protection laws that could \u201cdramatically exacerbate the situation if implemented too rapidly or overbroadly.\u201d<\/p>\n<p>On Sept. 1, in response to expected media reports resulting from the BuzzFeed story, FinCEN issued a press release that stated&nbsp;the \u201cunauthorized disclosure of SARs is a crime that can impact the national security of the United States, compromise law enforcement investigations, and threaten the safety and security of the institutions and individuals who file such reports.\u201d FinCEN said it referred this matter to the U.S. Department of Justice and the U.S. Department of the Treasury\u2019s Office of Inspector General. Buzzfeed did not make available the actual SARs in Wikileaks style, but rather described their contents.<\/p>\n<p>In a case related to the Panama Papers, the Justice Department on Sept. 21 reported a former U.S. resident and taxpayer was sentenced in the Southern District of New York to four years in prison for wire fraud, tax fraud, money laundering, false statements, and other charges.&nbsp;<\/p>\n<\/p><\/div>\n<p> READ MORE <a href=\"https:\/\/packetstormsecurity.com\/news\/view\/31603\/Leaked-FinCEN-Files-Expose-Poor-Data-Security.html\">HERE<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>READ MORE HERE&#8230;<\/p>\n","protected":false},"author":2,"featured_media":37289,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","footnotes":""},"categories":[60],"tags":[4792],"class_list":["post-37288","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-packet-storm","tag-headlineprivacybankcybercrimedata-lossfraud"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.7 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Leaked FinCEN Files Expose Poor Data Security 2026 | ThreatsHub Cybersecurity News<\/title>\n<meta name=\"description\" content=\"ThreatsHub Cybersecurity News | ThreatsHub.org | Cloud Security &amp; Cyber Threats Analysis Hub. 100% Free OSINT Threat Intelligent and Cybersecurity News.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" 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