Evermore sophisticated AI-powered cyberattacks could threaten the stability of the global financial system, The International Monetary Fund (IMF) has warned, as regulators race to contain a new generation of threats.
In their new report, the IMF said extreme cyber incidents could spark liquidity pressures and solvency concerns across banks and financial institutions.
The lender warned that AI was dramatically lowering the cost and time needed for hackers to identify and exploit vulnerabilities, increasing the risk of systemic financial shocks.
“Extreme cyber-incident losses could trigger funding strains, raise solvency concerns, and disrupt broader markets,” the IMF said.
The warning comes amid growing concern over powerful new AI systems capable of autonomously identifying software weaknesses and launching complex cyberattacks.
Last month, AI firm Anthropic alarmed governments and regulators after early testing of its forthcoming Mythos model reportedly showed it could uncover vulnerabilities across major software systems with unprecedented speed.
Those so-called zero-day vulnerabilities are considered among the most dangerous forms of cyber risk because developers are often unaware they exist until attackers exploit them.
The White House this week confirmed US authorities were carrying out extensive testing on frontier AI systems before public release, amid fears the technology could be weaponised against businesses or government systems.
Banks and regulators brace for AI cyber threats
The IMF warned the global financial system’s increasing reliance on shared cloud infrastructure and payment networks was creating concentrated points of vulnerability.
“The reliance on a small number of platforms and cloud providers could increase the impact of any single exploited weakness,” the report said.
Emerging markets and developing economies could prove particularly vulnerable because of weaker cyber defences and more limited resources, the IMF added.
The organisation called for stronger international cooperation between governments and regulators, arguing cybersecurity could no longer be treated purely as a technical issue.
Instead, it warned cyber resilience must become a core pillar of global financial stability policy.
The IMF’s intervention follows mounting concern among British ministers and regulators over AI-enabled cyber threats.
Earlier this month, cyber minister Baroness Lloyd urged hundreds of UK business leaders to strengthen cyber protections amid fears advanced AI models could “supercharge” attacks.
Bank of England governor Andrew Bailey also warned recently that frontier AI systems could “crack the whole cyber risk world open”.
Despite the risks, the IMF stressed AI could still become one of the financial sector’s most powerful defensive tools.
Banks are increasingly deploying AI systems to detect fraud, identify vulnerabilities and accelerate responses to attacks.
But the lender cautioned that AI-driven security systems would only succeed if firms invested heavily in governance, oversight and resilience planning.
“Defences will inevitably be breached,” the IMF warned. “Resilience must also be a priority.”
