Australian banks warned frontier AI could create larger, faster cyber attacks

Australia’s financial system regulator said on Thursday the country’s banks were not keeping pace with AI industry developments, warning frontier AI systems such as Anthropic’s Mythos had the potential to lead to larger and faster cyber attacks. In a letter ‌to banks, the ⁠Australian Prudential ⁠Regulation Authority (APRA) said most of the industry’s information security practices were struggling to match the rate of change in AI.

The regulator said ​the speed of AI development could pose a growing threat to Australia’s financial services.