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India’s financial services secretary M Nagaraju has warned banks and financial institutions to prepare for the cybersecurity risks posed by Claude Mythos Preview, the advanced AI model developed by Anthropic that has drawn global attention for its ability to identify software vulnerabilities.
Speaking at a Risk Management Summit organized by the Indian Banks' Association, Nagaraju said risks facing the banking sector now extend far beyond traditional financial exposure and increasingly include cyber threats, geopolitical tensions, technology disruptions, and operational vulnerabilities.
He specifically referenced Mythos AI and its capability to detect — and potentially exploit — weaknesses in software systems, warning banks to be prepared if the model becomes publicly accessible in India.
“One successful cyberattack can cascade quickly across institutions and markets,” Nagaraju said, noting that banks are particularly exposed because of their interconnected systems, dependence on legacy IT infrastructure, and real-time operational environments.
The comments reflect growing concern among governments and regulators worldwide over next-generation AI systems designed for cybersecurity research and vulnerability discovery. Mythos, unveiled earlier this year, has been described by experts as one of the most advanced AI models for identifying flaws in operating systems, browsers, and enterprise software.
Nagaraju said operational continuity must now be treated as central to financial stability, urging banks to strengthen cyber resilience, improve incident response mechanisms, and invest more heavily in security capabilities.
He also warned that financial institutions can no longer focus solely on institution-specific risk because modern banking ecosystems are deeply interconnected, allowing cyber or operational failures to spread rapidly across organizations and markets.
The remarks come as regulators and central banks globally assess the implications of increasingly capable AI systems that could both strengthen cybersecurity defenses and lower the barriers for sophisticated cyberattacks.
Speaking at a Risk Management Summit organized by the Indian Banks' Association, Nagaraju said risks facing the banking sector now extend far beyond traditional financial exposure and increasingly include cyber threats, geopolitical tensions, technology disruptions, and operational vulnerabilities.
He specifically referenced Mythos AI and its capability to detect — and potentially exploit — weaknesses in software systems, warning banks to be prepared if the model becomes publicly accessible in India.
“One successful cyberattack can cascade quickly across institutions and markets,” Nagaraju said, noting that banks are particularly exposed because of their interconnected systems, dependence on legacy IT infrastructure, and real-time operational environments.
The comments reflect growing concern among governments and regulators worldwide over next-generation AI systems designed for cybersecurity research and vulnerability discovery. Mythos, unveiled earlier this year, has been described by experts as one of the most advanced AI models for identifying flaws in operating systems, browsers, and enterprise software.
Nagaraju said operational continuity must now be treated as central to financial stability, urging banks to strengthen cyber resilience, improve incident response mechanisms, and invest more heavily in security capabilities.
He also warned that financial institutions can no longer focus solely on institution-specific risk because modern banking ecosystems are deeply interconnected, allowing cyber or operational failures to spread rapidly across organizations and markets.
The remarks come as regulators and central banks globally assess the implications of increasingly capable AI systems that could both strengthen cybersecurity defenses and lower the barriers for sophisticated cyberattacks.
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