Banks on High Alert for AI-Driven Cyber Threats, ATM and Mobile Banking Could Be Suspended

The global banking industry is currently on high alert. A new threat, driven by the rapid advancement of generative artificial intelligence (AI) technology, has bankers worried. The sophistication of this technology is such that it could force the temporary closure of operational services such as ATMs and mobile banking.

Following Hong Kong, banking authorities in Japan have now issued a stark warning about the potential for this cyber ‘catastrophe’. The Japanese Bankers Association has outlined a worst-case scenario in which the country’s financial institutions are forced to suddenly deactivate their critical infrastructure. Such an extreme measure could be taken to protect customer funds from a massive-scale cyberattack.

The source of the turmoil is the emergence of a new, super-sophisticated AI model, one of which is named Mythos, developed by Anthropic. This cutting-edge technology possesses the alarming ability to detect security vulnerabilities in software systems almost instantaneously. Should this capability fall into the hands of hackers, even the most tightly secured banking systems could be breached in seconds.

‘There is a real concern about a surge in high-level cyberattacks that far exceed our current predictions and preparations,’ said Masahiko Kato, Chairman of the Japanese Bankers Association and President of Mizuho Bank, as quoted by Reuters. Kato stressed that aggressive preventive measures are unavoidable in an emergency. ‘Certain services, such as ATM networks, may have to be proactively suspended. This is purely an emergency measure to mitigate risk and protect customer assets,’ he added.

The financial industry’s fears are not unfounded. Upon launching the Mythos model, Anthropic itself warned that its new AI had successfully identified thousands of bugs and vulnerabilities in major operating systems and browsers worldwide. The developer acknowledged that if these exploits were to spread uncontrollably, the destructive impact on the global financial system would be severe.

In response to this alarm, the international banking sector has begun tightening oversight and restricting the internal use of AI-powered tools. The United States government had previously ordered Anthropic to block access to the advanced AI model for foreign nationals, citing national security and stability concerns. However, that order was later rescinded and access was reopened for certain organisations.