Call us now:
If successful, this is a bold move by Japanese Financial Regulators. Allowing FIs to proactively suspend their systems at their discretion if they face the risk of cyberattacks, leveraging AI such as Mythos.
AI is creating new risks at a rate that the industry is finding hard to keep pace with. AI models such as Mythos are not just identifying software vulnerabilities; they are automating the cyber kill chain and with a greater degree of success year-on-year as models develop.
The challenge, however, with passing the decision back to banks to suspend their systems has significant consequences on the broader finance system. The interconnected nature of our financial infrastructure often means that transactions cannot be rerouted, as they need to be settled by corresponding banks or clearing houses.
What would happen in the unlikely event that the Japan Securities Clearing Corporation or Tokyo Financial Exchange were to be suspended? It would likely freeze the Japanese financial system, which could cause a risk to the Japanese Stock Exchange, Yen clearing, liquidity, and Japanese bond clearing.
One feels FIs may be between a rock and a hard place when it comes to AI, cybersecurity, and Financial control. You are damned if you do, damned if you don’t.
@Thaddeus Dziekanowski Brian D. McCarthy
@Parava Security Solutions
#ai #aisecurity #cybersecurity
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