Cyber Siege and Artificial Intelligence: These Aren’t Your Parents’ Cyber Threats

The era of weak passwords as the primary cybersecurity concern is long gone. The advent of Artificial Intelligence (AI) has ushered in a new and increasingly more complex threat landscape, while regulatory demands are on the rise.

The Securities Exchange Commission (SEC) is actively addressing these evolving cyber threats through new rules and proposals. For instance, they now require enhanced disclosures regarding cybersecurity risk management for public companies.

AI presents both opportunities and threats. While it can bolster cybersecurity defenses through rapid data analysis and automation, it also empowers threat actors to craft convincing attacks that are difficult to counteract.  Examples of such threats and opportunities are the following: 

Data Manipulation Attacks: These cyberattacks aim to manipulate sensitive data for malicious purposes. Sharing threat information through organizations like the Financial Services Information Sharing and Analysis Center (FS-ISAC) can enhance preparedness.

Phishing and Credential Stuffing: AI tools enable more convincing phishing attacks. Implementing multi-factor authentication and anti-phishing tools is more essential than ever, providing an additional layer of protection against sophisticated malicious actors.

AI is reshaping the cybersecurity landscape. Firms must adapt quickly to safeguard against these evolving threats, which are unlike any seen before.

This information comes from Michael Bahar, partner, Soroosh Faegh, associate, and Brian Rubin, partner, all at Eversheds Sutherland whose article Cyber Siege and Artificial Intelligence: These Aren’t Your Parents’ Cyber Threats appeared in the September 2023 edition of NSCP Currents. To receive important information such as this and to review the risks and the associated compliance and supervision suggestions, join NSCP today to receive NSCP Currents and stay up to date on issues such as this that matter most for the financial services industry. Members can access the full article here. 

Your work could also be featured in Currents, the premier compliance publication of the financial services industry. Find out how you can share your experiences, advice, and tried and tested strategies