I4C alerts Indian financial institutions to AI-driven cyber threats
The Indian Cyber Crime Coordination Centre has warned banks and fintechs that malicious AI agents are exploiting software vulnerabilities to carry out unauthorized financial transfers.
The National Cybercrime Threat Analysis Unit (NCTAU), operating under the Indian Cyber Crime Coordination Centre (I4C), issued an advisory on November 3 highlighting the rise of AI-led financial fraud. The agency noted that attackers are leveraging unpatched software and internet-facing server misconfigurations to infiltrate financial networks.
The agency has documented cases where autonomous AI systems accessed automated fund disbursement systems and payment APIs. Once inside, these agents initiate unauthorized transactions, routing funds through mule accounts and deleting audit trails to evade detection. The advisory specifically identifies customer-facing complaint portals and payment interfaces as critical vulnerabilities.
Financial institutions are now advised to perform authorized red-team exercises, implement stricter transaction limits, and enhance real-time monitoring for suspicious patterns. The I4C also mandated a six-hour incident reporting window to CERT-In for all detected breaches. This warning arrives amid broader industry concerns regarding the weaponization of agentic AI tools, echoing recent calls from Indian government and central bank officials to prioritize infrastructure security.