CERT-In Warns AI Is Being Used to Target Banks

November 5, 2026 admin 0 Comments AI cyberattacks, AI Governance, AI Risk, AI-enabled attacks, API security, banking cybersecurity, banking fraud, Cert-In, cyber resilience, cyber risk, FINANCIAL INSTITUTIONS, PHISHING

India’s Computer Emergency Response Team (CERT-In) has warned that hackers are increasingly using artificial intelligence to target banks and financial institutions, adding a new dimension to the country’s growing cyber-risk landscape.

AI is enabling attackers to make cyber operations more sophisticated and scalable. Threat actors can potentially use AI tools to automate parts of reconnaissance, generate convincing phishing content, identify vulnerabilities and accelerate attacks against financial institutions.

The warning is particularly significant for banks because their increasingly interconnected digital infrastructure includes mobile banking applications, APIs, payment systems, cloud platforms and third-party technology providers. A vulnerability in one component can potentially create wider operational and financial consequences.

The development also reinforces concerns around AI-assisted social engineering. More convincing messages and automated interactions can make it harder for customers and employees to distinguish legitimate communications from fraudulent ones.

For banks, conventional cybersecurity controls therefore need to be complemented by controls specifically designed to address AI-enabled threats. These include stronger identity and access management, continuous threat monitoring, employee awareness, API security and rapid incident-response capabilities.

AI also creates a defensive opportunity. Financial institutions can use AI for anomaly detection, fraud monitoring, threat intelligence and automated security analysis, provided the underlying AI systems themselves are governed and tested appropriately.

The warning comes as the RBI and the banking industry are already strengthening coordinated cybersecurity efforts. The Indian Banks’ Association has been working on mechanisms for faster sharing of cyber-incident information and exploring controlled environments for testing emerging AI models.

For risk managers, the central challenge is therefore two-sided: AI is becoming both a new attack tool and a potential defence mechanism. Banks will need to strengthen AI governance alongside conventional cybersecurity and operational-risk frameworks.