AI‑Driven Cyberattacks Threaten Indian Banks with Multi‑Crore Fraud, Agencies Warn

Indian cyber‑security agencies have issued a warning that banks could face frauds amounting to several crores if attackers use artificial intelligence to launch cyberattacks. The agencies highlighted that AI can automate phishing, credential‑stealing and transaction‑manipulation techniques, making it harder for traditional security measures to detect and stop breaches.

The alert comes as banks increasingly adopt digital channels and open‑banking APIs, which broaden the attack surface. Experts say that AI‑driven attacks can generate highly convincing fake emails and messages, tricking customers into revealing login details or authorising fraudulent transfers.

In response, banking regulators are urging financial institutions to upgrade their threat‑intelligence capabilities, conduct regular penetration testing, and train staff on recognising AI‑enhanced phishing attempts. The agencies also recommended that banks adopt multi‑factor authentication and real‑time transaction monitoring to mitigate potential losses.

While the exact scale of future attacks remains uncertain, the warning underscores the growing need for banks to invest in advanced cyber‑defence tools and to collaborate closely with national security agencies.

The agencies have called for a coordinated effort across the banking sector to strengthen resilience against AI‑powered threats and protect customers’ assets.