AI, 3rd-party tech likely to intensify risks of cyberattacks

Mumbai: The Reserve Bank of India has expressed concerns over risks arising from financial institutions’ dependence on artificial intelligence and third-party information technology. This risk could intensify in tightly interconnected institutions, the central bank said in its bi-annual Financial Stability Report.

A major cyber incident in these IT service providers may in turn impact multiple regulated entities simultaneously, causing a cyberattack on a system-wide level. “In the recent past, multiple incidents involving payment and settlement systems have led to significant disruptions in interbank transactions and payment failures,” the report stated.