FROM THE OFFICE OF PUBLIC AFFAIRS

I am extremely honored to be part of this event today.  The United States Secret Service generally, and the Electronic Crimes Task Forces specifically, have become important partners with Treasury in enhancing the resiliency of the financial system.  We have developed a productive working relationship with several task forces, including those in New York, Chicago, San Francisco, and Charlotte.  And we welcome the addition of such a unit here in Cleveland, which will be under the capable leadership of Tom Lynch.

Among other things, Treasury is charged with protecting financial institutions and their customers.  We take this responsibility very seriously because of the extreme importance of the financial system.  As Secretary Snow has observed, U.S. financial institutions constitute the engine of our free enterprise system, our economy.  It takes more than dreams and hard work to start a business or build a great company.  It takes capital.  Nowhere is that more evident than in a city like Cleveland, where world-class financial institutions help fuel a robust housing market, a vibrant small business community, cutting edge information technology firms, international trade, and some of the greatest and oldest names in America's industrial history.  In a very direct way, we depend on the financial system to build our economy and create jobs. 

In addition, our workers depend on the financial system not only to help create jobs, but also to help pay for daily needs, to help finance the dream of home ownership, to help pay for their children's education, and to help plan for retirement.  This system only functions if the public places its trust and confidence in financial institutions.  In a very real way, therefore, the “currency” of the financial system, if you will, is public trust.  We must protect the financial system so as to maintain that trust.

The United States Secret Service understands this very well.  In fact, they have earned a reputation as guardians of public trust by protecting Presidents and other leaders.  But they are also well known for their expertise in criminal financial investigations.

 I have seen their work first hand at the Treasury Department, as the Secret Service has worked to help track down associates of the 9/11 hijackers, as the Secret Service works to fight the growing scourge of identity theft, and as the Secret Service works through task forces like this one to protect companies, employees, and customers from financial crimes.   No one is better at this than the United States Secret Service, because they work directly with financial institutions, they understand the business, and they maintain confidentiality.  They seek results, not headlines.

Unfortunately, many of you in this room will be a victim of an electronic crime.  It is almost a matter of time, because these crimes are growing.  Take identity theft, for example.  A recent study by the Federal Trade Commission reports that identity theft affected 27 million Americans within the last five years, and as many as 10 million in the past 12 months.  The crime costs businesses nearly $50 billion a year.  It costs victims countless hours and an estimated $5 billion a year. 

As another example, consider the growing number of viruses that have been launched against our computer systems in recent months.  Within just the last two months, two major viruses have been launched against computer systems around the world, the Blaster series of viruses and SoBIG.F, the sixth in the SoBIG family.  It is estimated that damages caused by these viruses, and other released throughout the year (like Slammer) have caused billions of dollars in damages. 

Based on my experience, I know that many affected financial institutions will call their local task force for assistance.  I also know from experience that they will be satisfied with the results.  Starting today, financial institutions in Cleveland will experience this first hand.

Thank you, Director Basham for your vigilance in protecting the U.S. financial system.  Thank you, SAC Michael Bilinovich for your leadership in creating this task force.  I am confident it will be an important component of ensuring that the U.S. financial system— including the important components of that system here in Cleveland—remain the most resilient in the world.