SEBI, India’s market regulator, has warned of rising hacking risks from advanced AI tools like Mythos and set up a task group to make the whole financial environment safer.
An expert in the field said that the cybersecurity risks that advanced AI systems like Mythos pose are “real” and could completely change how financial institutions deal with digital threats. This comes as India’s markets regulator steps up its control of AI-driven weaknesses.
Bruce Keith, creator and CEO of InvestorAi, said that the development of big AI models that can find system flaws on a large scale represents a fundamental change in cyber defense tactics.
“There is a real threat.” It will change how banks handle cyber risk, Keith said, adding that regular penetration testing cycles might not be enough in a world where AI tools can quickly find holes that can be used against the system.
After an advice from the Securities and Exchange Board of India (SEBI) on Tuesday, regulators are more worried than ever. This is when he spoke out.
The regulator warned of new risks from AI-based tools like Anthropic’s Mythos that are used to find holes in systems. They also announced the creation of a task group to make everyone in the market more cyber-resilient.
SEBI said that the fast development of these kinds of systems, which can scan and find weaknesses on a large scale, makes them worried about how they could be used and how reliable the results that AI produces in important financial infrastructure are.
The regulator said in its memo that because market players are linked and rely on each other, there needs to be a unified plan for managing vulnerabilities, sharing information, and monitoring/assessing on a regular basis to stop problems from spreading.
A growing discussion about the risks of AI’s dual-use
The move adds to a larger debate in the industry about the dual-use nature of advanced AI tools, which are systems that can both make cybersecurity stronger and make it easier for complex hacks to happen.
Keith said that the effects go far beyond financial services, but the risks are especially high in markets because they are so connected to the rest of the economy.
He also asked for stricter rules on who is responsible for using AI in controlled areas. He said, “Regulators should make everyone responsible for all outcomes from AI and tech tools they use.” He also said that institutions need to be clear on how these systems are used and managed on the inside.
Read also: Anthropic Launches 10 New AI Bots for Banking-Focused Business Solutions
A task group for “cyber-suraksha.ai” was created
To deal with the new threats, SEBI set up an industry-wide group called cyber-suraksha.ai. It is made up of people from regulated companies, market infrastructure institutions (MIIs), qualified register and transfer agents (QRTAs), and other interested parties.
The regulator says that the task group has already had its first meeting. At this meeting, risks related to AI platforms like Mythos were discussed, along with possible ways to reduce those risks.
A report calls for better safety measures
As the task force’s first suggestions were taken into account, SEBI put out a set of advice steps to make the stock market environment safer when it comes to hacking.
Regular vulnerability assessments using both traditional and AI-based tools, timely patch management, better monitoring through security operations centers, stronger API security, regular risk assessments, and the use of zero-trust architecture to reduce attack surfaces are some of the steps that should be taken.
The government also told people in the market to work together with third-party providers to make sure that security fixes are applied on time and that full risk assessments are done for systems that use AI.
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