Project Fortress: Treasury Department and Wall Street Unite to Combat Cyber Attacks

In a bid to curb the rising threat of cyber attacks on the U.S. financial system, the Treasury Department has teamed up with major Wall Street banks to form a public-private alliance known as Project Fortress. This initiative aims to bolster the security and resilience of the financial services sector amidst escalating threats from cybercriminals and other malicious actors.

The Purpose of Project Fortress

Project Fortress is the latest measure in the Treasury's ongoing efforts to safeguard the nation's financial infrastructure. According to a letter sent by Deputy Treasury Secretary Wally Adeyemo to several banking groups (as seen by Quartz), Project Fortress will employ a mix of defensive and offensive strategies to counter cybersecurity threats. This includes the Treasury's national security team and law enforcement working together to "make clear to our adversaries that they will face consequences for their attacks."

Key Features of Project Fortress

Public-Private Collaboration:

The Treasury Department and Wall Street banks are working in close partnership, emphasizing the importance of information sharing.
Deputy Secretary Adeyemo highlighted, "The more information we share with each other, the stronger our tools—both defensive and offensive—will be."

Cyber Hygiene Tool:

Financial institutions will have the option to enroll in a "cyber hygiene" tool that automatically scans firms for cybersecurity vulnerabilities.

Automated Threat Feed:

An automated threat feed will aggregate indicators from federal agencies, international partners, and other financial institutions, providing real-time data to strengthen defenses.

Free Tools:

The project will offer the financial services sector free tools developed by the Treasury to combat cyber threats effectively.

Strengthening Financial Security

The American Bankers Association is hosting a webinar on June 6 for banks and other members to provide more insights into Project Fortress and its implementation. The Treasury Department's objective is to convey a strong message to potential cyber attackers. One U.S. official told CNN:

"The message to bad actors who want to use cyberspace to go after U.S. financial institutions is: We are watching, we are protecting the system, and we will come after you if you go after the U.S. financial system."

Addressing Growing Cyber Threats

The urgency of Project Fortress cannot be overstated. In early 2021, the International Monetary Fund warned that cybercriminals pose an increasing threat to the global financial system, threatening its stability and integrity. The financial services sector worldwide faced the second-highest number of data breaches in 2022, according to cybersecurity firm SentinelOne.

Rising Attacks: Ransomware attacks on financial services rose to 64% in 2023, nearly double the 34% reported in 2021.
Significant Losses: Positive Technologies estimated that financial organizations faced losses amounting to approximately $5.9 million per cyber incident in 2022.

Conclusion

Project Fortress represents a proactive and unified approach by the Treasury Department and Wall Street banks to safeguard the U.S. financial system. By combining defensive and offensive measures, enhancing information sharing, and providing free tools to combat threats, the partnership aims to create a more secure financial sector. Ultimately, this alliance sends a strong signal to cybercriminals: the U.S. financial system is protected and ready to respond to any attack.