Financial regulators urge stronger cyber security amid AI-enabled cyber attacks

A new report indicates that 96% of schools in New Zealand could be “very easily” hacked, highlighting serious cybersecurity concerns within the education sector. The findings raise alarms over the vulnerability of student data and the operational integrity of schools. The revelation has prompted calls for enhanced cyber defenses and more robust policies to safeguard sensitive information. Authorities have separately urged industries to strengthen their cybersecurity measures in light of increasing threats involving artificial intelligence. The Reserve Bank of New Zealand and the Financial Markets Authority issued a joint statement emphasizing the need for better oversight to address AI-related risks. Assistant Governor for Financial Stability Angus McGregor stated that financial institutions must ensure they have appropriate systems and controls in place to manage these evolving threats. He noted that advancements in AI are reshaping the landscape for such organizations. The updated guidelines focus on governance, risk management, third-party risks, and readiness for incidents. Regulated entities are expected to recognize that AI-enabled attacks are likely and prepare accordingly through scenario testing and recovery plans. They are also advised to improve fundamental cyber protections, especially in areas using outdated or unsupported technologies. Louise Unger, Executive Director of Response and Enforcement at the FMA, acknowledged both the opportunities and challenges brought by AI. She emphasized that leadership must be aware of where AI is applied within their businesses, understand associated risks, and clearly define roles for managing those risks.