Union Finance Minister Nirmala Sitharaman has warned India’s banking sector about rising cybersecurity risks linked to advanced artificial intelligence tools, urging lenders to upgrade their security systems and prepare for new digital threats.
At the centre of the concern is “Claude Mythos,” an AI model developed by Anthropic. Reports suggest the tool has advanced capabilities to detect software weaknesses across computer systems and browsers. Officials fear such technology, if misused, could be exploited for fraud, hacking, theft of customer information and disruption of banking services.
The warning came during a high-level review meeting attended by senior officials from public and private sector banks, regulators and technology agencies. Discussions focused on how powerful AI systems could be misused to target financial institutions.
Sitharaman said Indian banks have managed cyber risks well so far through digitisation, regular software upgrades, firewalls and fraud monitoring systems. However, she cautioned that traditional safeguards may not be enough to tackle AI-driven attacks in the future.
She called for stronger and more flexible security systems to counter evolving risks. The Finance Minister also stressed the need for closer coordination among banks, regulators and cyber agencies to improve preparedness.
Banks were asked to create a real-time intelligence-sharing mechanism so suspicious activity or attempted breaches can be reported quickly across the sector. Officials said a coordinated industry-led system would be developed to monitor threats and improve response capabilities.
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