By Pete Schroeder

WASHINGTON (Reuters] – The top U.S. regulator for banking is warning firms to make sure they have strong cybersecurity policies. According to a Monday report, the regulator said it has seen an increase in ransomware attack.

According to the Office of the Comptroller of the Currency, banks should have “robust systems” to detect threats and weaknesses in their technology and backup key records to protect against hackers trying to take down systems in order to make it pay.

OCC issued a semi-annual risk assessment and warned banks to watch out for third parties. Bad actors are using outside vulnerabilities more often to engage in “malicious” cyber activities.

OCC stated that banks are still at moderate credit risk due to their loan portfolios having weathered the crisis thanks to prudent risk management practices by banks and assistance programs from government. OCC did note that banks have some difficulties helping clients with the completion of certain programs such as the Paycheck Protection Program. Banks are now subject to increased compliance obligations.

Concerning climate change, OCC indicated that they were continuing to develop a climate risk framework for the banks under its supervision. The OCC plans to roll it out first with some of the most complex and large firms.