Fed watchdog urges stronger travel security for staff

Investing.com -- The Federal Reserve needs to improve how it protects employees and information during international travel, according to a report from the central bank's Inspector General.

The Fed currently does not have a formal program to prepare staff for international trips or conduct post-travel checks to identify suspicious incidents, the IG said. The central bank also lacks a system to track employee foreign travel or share risk assessments, and does not have tools to ensure workers follow foreign travel regulations.

The report noted that current international travel reporting requirements only apply to employees with security clearances, even though many other staff members have access to confidential central bank information.

The IG said international travel helps the Board collaborate with other central banks and foreign governmental and nongovernmental entities, but such trips create information security and physical risks for Fed employees.

"It is common for foreign adversaries to target U.S. government employees to acquire nonpublic information," the IG said in its report.

The report highlighted China and said the country "has targeted and obtained information from the System, as evidenced by an insider risk incident." Common foreign collection methods include targeting government personnel during international visits and at conferences, as well as using academic solicitation to obtain sensitive or national security information, the authors said.

A spokesperson for the IG said the report was self-initiated and part of a broader review on how the Fed manages risks around information and operations. The Fed is responding to the concerns and recommended reforms and is working on improving its approach to staff international travel, the IG report said.

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