CONNECT WITH US
Fintech

Fintech

Financial Firms Told to Brace for Bigger AI Cyber Threats

Fintech News Singapore logo

Published on

Add as a preferred source on Google
Financial Firms Told to Brace for Bigger AI Cyber Threats

The Financial Stability Board (FSB) has identified cyber risk as the most immediate financial stability concern arising from frontier AI.

In a letter to G20 finance ministers and central bank governors, Chair Andrew Bailey warned that increasingly capable models could change the speed, scale and economics of cyber threats.

“For the financial system, the most immediate concern is the potential impact of frontier AI on cyber risk.

Frontier AI may have the ability materially to alter the speed, scale and economics of cyber risk, which could undermine market confidence system-wide, especially due to highly concentrated third-party service providers,”

Disruption could spread across borders through shared infrastructure, common technology providers and international financial activity.

Differences in cyber preparedness and recovery capabilities between countries could increase the impact.

Financial firms may also face a higher volume of vulnerabilities and pressure to deploy patches more quickly.

This could create operational risks if their testing and recovery processes cannot keep pace.

Bailey urged authorities to prioritise the safe release and deployment of frontier models globally.

He noted that many jurisdictions do not yet have protocols covering their development and release.

Financial institutions, market infrastructure operators and technology providers should strengthen vulnerability management, response and recovery capabilities.

They should also prepare for incidents that disrupt several firms or shared services at the same time.

This includes ensuring that critical systems and data can be restored following a significant cyber incident.

Frontier AI could also strengthen cyber defence, but advances in capability must be matched by adequate resilience and preparation.


Source link
Related Topics:Fintech

Disclaimer

We strive to uphold the highest ethical standards in all of our reporting and coverage. We TheMorningPulse.fyi want to be transparent with our readers about any potential conflicts of interest that may arise in our work. It's possible that some of the investors we feature may have connections to other businesses, including competitors or companies we write about. However, we want to assure our readers that this will not have any impact on the integrity or impartiality of our reporting. We are committed to delivering accurate, unbiased news and information to our audience, and we will continue to uphold our ethics and principles in all of our work. Thank you for your trust and support.