MAS flags major AI, quantum computing risks to financial institutions; forms task force to prepare defences

“Our aim is for (financial institutions) to achieve quantum resilience before the end of this decade,” he said.

NEWER THREATS AND CHALLENGES

ABS and MAS said in a joint media release that the establishment of the AI-driven Cyber and Technology Risk Taskforce (ACT), which has been bringing members together since May this year, was in response to the emerging risks posed by frontier AI models.

The task force will comprise MAS and senior technology and cyber leaders from financial institutions, including DBS, OCBC, UOB, the Singapore Exchange, NETS, as well as the Banking Computer Services.

MAS and ABS said the task force will facilitate industry sharing of AI cybersecurity use cases and experience, as well as to boost cyber defence knowledge. It will also strengthen the cyber security posture or financial institutions.

“AI is reshaping the cyber threat landscape, and the financial sector must continue to move together to stay resilient,” said ABS director Ong-Ang Ai Boon.

The sector remains vigilant, agile and committed to strengthening resilience, she added.

For AI-enabled scams, phishing can be more personalised and persuasive “at scale”, said Mr Chia. Frictions to digital banking transactions remain useful to frustrate scammers, but banks must harness AI and strengthen their controls to better defend against more sophisticated tactics, he said.

MAS will review the banks’ efforts to enhance the effectiveness of their fraud detection models, including how well they use AI, he said.