The financial services regulator has issued a stark call to the finance industry: harden your cyber defences now or face the consequences of a “step-change” in AI-driven crime.
In an open letter addressed to all licensees and directors on Friday (8 May), the Australian Securities and Investments Commission (ASIC) has warned that the misuse of artificial intelligence (AI) models could expose cybersecurity vulnerabilities at an unprecedented speed, scale, and sophistication.
The letter, issued by ASIC Commissioner Simone Constant, is therefore calling on all licensees and market participants to urgently strengthen their cyber resilience measures, as frontier AI intensifies the global cyber risk environment.
“Cyber risk has entered a new era. The advent of frontier AI models creates opportunity, but also materially increases risk, with the ability to expose vulnerabilities far faster than many realise,” she said.
“In this new world, weaknesses that once seemed isolated can now have a system-wide domino-effect, enabling new forms of exploitation that were previously out of reach for most malicious actors.”
ASIC is therefore emphasising the need for…
