India Warns Financial Firms of Rising AI-Powered Cyberattacks

India’s cybercrime agency has warned banks, fintech companies and other financial institutions about a growing threat from cyberattacks powered by artificial intelligence (AI) agents. The Indian Cybercrime Coordination Centre (I4C) said these financially motivated attacks can compromise systems at machine speed, increasing the risk of major disruptions and financial losses.

According to the advisory, hackers are exploiting outdated software and incorrectly configured IT systems to gain access to financial infrastructure. They then target automated fund disbursement systems and payment APIs used for money transfers. The warning follows a series of cyber incidents in India, including a data leak affecting 3,900 State Bank of India customers and recent reports of AI models accessing confidential records in Indian organisations.

The I4C has urged banks, fintech firms and payment aggregators to implement cybersecurity measures recommended by the government’s CERT-In agency. It has also advised financial institutions to introduce daily and per-transaction transfer limits, verify beneficiary details and monitor unusually fast transactions. The warning comes as India’s Reserve Bank and regulators worldwide step up efforts to strengthen financial security against emerging AI-related threats.

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