A Federal Reserve Board employee in the Division of International Finance repeatedly removed sensitive files before planned retirement, according to the Federal Reserve’s inspector general (OIG). The issue came to light during an audit of the Fed’s offboarding process that began in March 2025, when auditors learned of the staffer’s stated intention to retire in July 2024 and a “desire to remove files” prior to that date.
The OIG says the discovery prompted further scrutiny, uncovering additional instances linked to the same individual and suggesting an “apparent lack of diligence” on the Fed’s part in addressing the risk.
The watchdog’s investigation identified hundreds of data loss prevention alerts triggered by the employee’s handling of sensitive materials in the run-up to retirement. While the article does not detail the specific methods used to remove or mishandle the files, it notes the scope of the issue and the ongoing concerns about governance and containment during the offboarding process.
The report underscores the need for robust controls around offboarding and data handling for personnel with access to sensitive information. Readers are directed to FedScoop for the full reporting.