Pub. 10 2019 Issue 2

www.wvbankers.org 8 West Virginia Banker Vendor Management Events Over the Past Year Continues to Emphasize Its Importance By Chris Joseph, CPA, CISA, CRISC, CITP, Arnett Carbis Toothman LLP I t has been several years since vendor management became a point of emphasis for regulators, auditors, senior financial institution management, board of directors and most importantly, customers. The introduction of new products and ser- vices has resulted in increasing reliance on third parties in order for a financial institution to effectively deliver these products and services to their custom- ers. However, events over the past year (and in prior years) have illustrated the continued need to have a robust vendor management program. Events over the past year. There have been many events that have occurred within and outside the financial insti- tutions industry including: • First American Financial Corp. KrebsOnSecurity recently report- ed (May 24, 2019) that the website of First American Financial Corp. leaked hundreds of millions of documents related to mortgage deals (title insurance records) as far back as 2003. Significant infor- mation was leaked (i.e. available) including bank account numbers, bank statements, mortgage and tax records, social security num- bers, wire transaction receipts and driver license images. All of this information was available without authentication to anyone who had access to a web browser. KrebsOnSecurity was contacted by a real estate developer about the issue. Anyone who knew the URL for a valid document could view other documents just by changing a single digit in the link. KrebsOnSecurity confirmed the findings where approximately 885 million files were exposed.