Cybersecurity Agency I4C Warns Banks & Fintechs Against AI-Led Cyberattacks

The Indian Cyber Crime Coordination Centre (I4C) has cautioned banks, non-banking financial companies (NBFCs) and fintech startups about the rising threat of AI-powered cyberattacks. The National Cybercrime Threat Analysis Unit (NCTAU) issued an advisory on November 3, highlighting that malicious AI systems are exploiting unpatched software and insecure servers to infiltrate financial infrastructure.

These attackers are targeting automated fund disbursement systems and payment APIs to carry out unauthorized transactions, potentially running into millions of Rupees. The I4C warned that attackers rapidly transfer funds through intermediary accounts and withdraw the proceeds using IMPS and NEFT, making investigation challenging.

To mitigate these risks, financial institutions are advised to promptly install critical software updates, report incidents within six hours, and strengthen customer-facing systems. Other recommendations include setting transaction limits, verifying beneficiary information, monitoring transaction patterns, and improving coordination among security, transaction monitoring, and IT teams.

The warning underscores how AI is accelerating the threat of financial fraud in the financial services sector.