Cert-In, I4C alert banks to AI-powered cyber threats, fraudulent transfers

The Indian Computer Emergency Response Team (Cert-In) and the Indian Financial Cyber Crime Coordination Centre (I4C) have jointly cautioned financial institutions about an escalating threat landscape involving AI-powered cyber intrusions. The agencies have flagged coordinated attacks that exploit machine learning and automated systems to breach customer accounts and initiate fraudulent transactions.

According to the advisory, attackers are leveraging AI capabilities to enhance the sophistication and speed of their operations. Once unauthorised access is gained, funds are systematically transferred to intermediary accounts—commonly referred to as mule accounts—maintained across multiple banks. These accounts serve as temporary repositories for stolen money.

The advisory emphasises that criminals are employing rapid-transfer mechanisms to move or withdraw funds before detection occurs. Immediate Money Payment Service (IMPS) and National Electronic Funds Transfer (NEFT) systems are being exploited to quickly channel stolen money out of the banking system, making recovery efforts increasingly challenging.

Both Cert-In and I4C have recommended that financial institutions strengthen their fraud detection systems, implement multi-factor authentication, and enhance real-time monitoring of high-risk transactions. Banks have been asked to maintain heightened vigilance for suspicious account creation patterns and unusual fund movements that may indicate mule account networks. The agencies continue to urge customers to report any unauthorised transactions immediately to their respective banks.