Pearce Chairs Hearing on Cyber-attacks, Breach of Personal Information

Press Release

Congressman Steve Pearce today led the Terrorism and Illicit Finance Subcommittee hearing entitled "After the Breach: the Monetization and Illicit Use of Stolen Data." An increasing amount of cyber-attacks have led to electronic identity theft along with credit card and other types of fraud. This hearing examined the economics of cybercrime, the monetization of stolen data from cyber-attacks, the role that dark web marketplaces play in helping criminals profit from their theft, and how illicit proceeds are laundered into our financial system.

"Cybertheft is particularly damaging because the sensitive information being stolen, including Social Security Numbers, is difficult or sometimes impossible to change. The victim of a breach can become a victim repeatedly as their identity can be used to apply for credit cards, mortgages, and other financial products over and over again. Unfortunately, this activity is only becoming more widespread as criminal organizations realize the low cost of entry, the ease of using hacking tools, and the difficulty law enforcement faces trying to apprehend hackers. I thank the witnesses and my colleagues for discussing how we can combat these cyber-attacks and protect Americans' sensitive information. I look forward to continuing this work so we can strengthen our financial system to better predict and prevent future breaches," stated Rep. Pearce.

Background
The monetization of stolen data, which has historically been a hurdle for cybercriminals, has become less difficult because of improvements in dark web black markets and the spread of digital currencies. Last month the Council of Economic Advisors released a report estimating that malicious cyber activity cost the U.S. economy between $57 and $109 billion in 2016, and this cost is expected to climb as more devices become internet connected. It is estimated that in 2017 there were 610 public and private breaches in the United States, triggering the exposure of 1.9 billion records.

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