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Sheltered Harbor, or US bank readiness for a cyberattack

Categories : Cash is a contingency and fall-back solution, Cash is trust
December 11, 2017
Tags : ATM, ATM forecasting, Cybercriminality, Data breach, Disaster, US
A consortium of banks and credit unions in the US have joined forces creating Sheltered Harbor - a project to better prepare in the event of a cyberattack. It might be time to look into the management of cash supplies in the event of a disaster.
Communication Team / Equipo de Comunicación

A country-wide cyber-attack or a natural disaster is real threat to any government – and financial institutions are aware of this. Indeed, to avoid being taken by surprise, a consortium of US banks and credit unions have joined forces launching a project this year called Sheltered Harbor.

Members of the consortium have committed to backing up customer data on a regular basis to be ready in the event of an attack. Unfortunately, the initiative’s post-disaster solutions do not include ensuring that the cash supply chain is also disaster-resilient, and wrongly so. Indeed, even the most recent hurricane disasters have proven how important it is to have access to cash. Each citizen could of course make sure to store a stack of cash, but disasters are often the least of our worries.

Fortunately, the US Federal Reserve Bank encourages commercial banks to maintain a stockpile of cash in case of a disaster, but there is no generalised strategy applied by financial institutions. The logistics – as well as the risks of having an ATM with too much cash – can of course be complicated to manage, but this can be a legitimate topic for discussion in the framework of overall bank disaster preparedness, especially in the United States where the 2017 string of hurricanes resulted in an important shortage of liquidity.   

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