Indonesia's Neighbour on High Alert, Preparing for Major Digital Catastrophe

The surge in AI usage is bringing new consequences to the digital world. The technology is not only being used for innovation but is also increasingly employed in sophisticated cybercrime, including online fraud. Evolving cybersecurity threats as AI advances are now a global concern and could significantly impact Indonesia. In Hong Kong, for instance, authorities are already on high alert. The territory near Indonesia has issued warnings to licensed companies to strengthen their cybersecurity defences. The local securities regulator explained this is due to increasingly sophisticated and targeted AI-based cyber threats. Reported cyberattack incidents have also increased within just one year. Data from the Hong Kong Computer Emergency Response Team Coordination Centre revealed a 27% increase in incidents, from 12,536 cases in 2024 to 15,877 in 2025. Most recently, the Hong Kong Securities and Futures Commission reminded licensed firms, particularly internet brokers and virtual asset trading platforms, to adopt the latest safeguards. It is hoped this will prevent unauthorised access to client data and protect against asset misuse. According to the local regulator, AI helps perpetrators identify and exploit vulnerabilities more quickly. It also allows them to launch large-scale attacks and lowers the barriers for phishing and social engineering schemes. The regulator has also identified areas for strengthening cybersecurity, including locations for firms to conduct patching and vulnerability management, detection and monitoring, as well as incident response and recovery. SFC Executive Director of Intermediaries, Eric Yip, spoke about the responsibility of senior management regarding cyber resilience and protecting client assets. Meanwhile, security vulnerabilities caused by AI have also become a focus for global regulators due to the risks posed by the AI model Mythos from Anthropic. Australia’s watchdog and Japan’s banking authority are among those issuing similar warnings. The newly launched Mythos has reportedly been able to reveal thousands of security flaws in major operating systems and web browsers. Its creator, Anthropic, has stated the model could pose risks to the economy, public safety, and national security if misused. Concerns over these risks prompted US Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell to meet with major bank bosses to discuss the potential risks. Similarly, UK authorities have held talks with major banks and cybersecurity officials. In Germany, the President of the German Banking Association and CEO of Deutsche Bank, Christian Sewing, revealed that local banks have been in close contact with European regulators.