In what way does the FDIC assist banks against potential cyberattacks?

The FDIC assists banks against potential cyberattacks primarily by recommending best cybersecurity practices. This role is essential because it enables financial institutions to enhance their security frameworks and defenses against cyber threats. The FDIC provides guidelines, resources, and frameworks to help banks assess their vulnerabilities and implement effective security measures to safeguard customer data and banking operations.

By offering best practices, the FDIC facilitates a proactive approach to cybersecurity, encouraging a culture of awareness and education within banks. This enables institutions to adapt to the ever-evolving landscape of cyber threats and remain vigilant. Promoting robust cybersecurity practices helps banks improve their resilience against potential attacks, thus ensuring the stability of the financial system.

Other options, while they may suggest various forms of support, do not accurately reflect the primary role of the FDIC in this context. The FDIC does not offer specific insurance against cyber losses; instead, it focuses on preventative measures. Monitoring all bank transactions is not feasible or within the FDIC’s scope, and limiting internet access may not effectively address the complexities involved in cybersecurity. Therefore, recommending best practices stands out as the most relevant and substantial way the FDIC supports banks in combatting cyber threats.