World Braces for Major Catastrophe, Indonesia's Neighbour on High Alert

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 being exploited in increasingly sophisticated cybercrimes, including online fraud. The evolving cyber security threat, driven by advances in AI, is now a global concern and could have a significant impact on Indonesia, particularly its banking industry.

Cyber threats based on the latest generation of artificial intelligence are becoming so real that governments and financial regulators in various countries are issuing stark warnings to banks. The source of this turmoil is the arrival of a new, super-sophisticated AI model called Claude Mythos, developed by Anthropic. This cutting-edge technology is known to have a terrifying ability to detect security gaps, bugs, and vulnerabilities in software systems, operating systems, and major browsers in a matter of seconds. If this extreme capability is exploited by hackers, even the most advanced banking security systems could be breached instantly.

‘Advanced AI models, such as Anthropic Claude Mythos, are shortening the window for effective risk mitigation,’ the Office of the Superintendent of Financial Institutions (OSFI) stated, as reported by Reuters. This warning from Canada extends the list of wealthy nations anxious about the adverse effects of AI Mythos. Similar warnings have previously been voiced by senior officials in the United States, including Treasury Secretary Scott Bessent and Federal Reserve Chair Jerome Powell. Authorities in the UK, Japan, and Hong Kong have also issued similar alerts.

Hong Kong, for instance, is already on full alert. The country near Indonesia has issued warnings to licensed companies to strengthen their cyber security defences. The local securities regulator explained this is due to increasingly sophisticated and targeted AI-based cyber threats. 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. This measure is expected to prevent unauthorised access to client data and protect against asset misuse. According to the local regulator, AI helps perpetrators identify and exploit vulnerabilities faster, launch large-scale attacks, and lower the barriers to phishing and social engineering schemes.

ATM and Mobile Banking Services Threatened with Shutdown

The impact of AI exploitation is considered highly destructive to financial infrastructure. In Japan, the Japanese Bankers Association has even prepared a worst-case scenario to protect customer funds: temporarily shutting down ATM services and mobile banking applications. ‘There is real concern about a surge in high-level cyber attacks that far exceed our predictions and anticipations so far,’ said Masahiko Kato, Chairman of the Japanese Bankers Association and President of Mizuho Bank. Kato stressed that a sudden shutdown of services is a proactive emergency measure that cannot be avoided if the situation worsens. ‘Certain services, such as the ATM network, could be suspended proactively. This is purely an emergency measure to mitigate risk and protect customer assets,’ Kato added.

Anthropic itself, when launching Mythos, did not deny the potential danger. They acknowledged that their product is capable of sniffing out thousands of system vulnerabilities worldwide, which could be fatal to the global financial ecosystem if it falls into the wrong hands. In response to this cyber doomsday alarm, global regulators and financial institutions are now moving quickly to restrict the use of third-party AI tools within banks, while simultaneously accelerating independent investment in building more robust security systems and cyber risk mitigation.