Rs. 300 crore lost in AI cyberattacks on NBFCs, but regulators remained silent

AI-powered cyberattacks have reportedly siphoned off about Rs. 300 crore from smaller non-banking financial companies (NBFCs) across India over roughly two months, resulting in more than 150 first information reports (FIRs) being filed. The Economic Times reported the breach, citing 'highly placed sources,' but regulators such as CERT-In and the Reserve Bank of India (RBI) did not publicly address the incident. This lack of transparency has raised questions about the adequacy of India's cyber defense mechanisms and the role of regulatory bodies in managing such crises.

The breach was first highlighted by the Economic Times, which cited internal sources within the financial sector. The Central Bank of India suffered a loss of Rs. 13.97 crore, which was exposed through a report by Hindustan Times. This incident has underscored the vulnerabilities in India's financial infrastructure and the potential for AI-driven attacks to exploit these weaknesses. The delay in public disclosure by regulators has further fueled concerns about the effectiveness of India's cyber governance framework.

The Rs. 300 crore loss from AI cyberattacks on NBFCs has been attributed to sophisticated techniques that bypassed traditional security measures. These attacks were reportedly carried out over a period of two months, with the Central Bank of India being one of the notable victims. The scale of the breach, which involved multiple NBFCs, has highlighted the need for stronger cybersecurity protocols and more proactive oversight by regulatory bodies such as CERT-In and RBI. The lack of immediate regulatory response has left many stakeholders questioning the preparedness of India's financial sector to combat such threats.

In India, the delayed public disclosure of the Rs. 300 crore loss has triggered a wave of scrutiny over the role of regulators like CERT-In and RBI. The Economic Times' report, which came after two months of the breach, has led to calls for greater transparency and accountability from these institutions. Indian regulators are now under pressure to address the gaps in their cyber defense strategies and to ensure that similar incidents are prevented in the future. The incident has also raised concerns about the potential for AI-driven cyberattacks to become more frequent and damaging, especially in the absence of robust regulatory oversight.

The incident has exposed significant vulnerabilities in India's financial infrastructure and the need for stronger regulatory frameworks to address AI-driven cyber threats. With regulators like CERT-In and RBI facing criticism for their delayed response, there is a growing demand for more proactive measures to protect India's financial sector. The breach has also highlighted the importance of timely disclosure and the role of media in bringing such issues to public attention when regulatory bodies fail to act.