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AI, quantum computing threats report overview:
- Who: The Federal Reserve released its Cybersecurity and Financial System Resilience Report earlier this month.
- Why: The Fed said it determined artificial intelligence and quantum computing — among other things — represent a significant threat to the US financial system.
- Where: Nationwide.
The Federal Reserve revealed in its Cybersecurity and Financial System Resilience Report that the rise of artificial intelligence and the emergence of quantum computing are significant threats to the US financial system.
The report, which was published earlier this month, declares quantum computing represents a danger, as its computing power could turn out to be powerful for encryption standards used by financial institutions.
The rise of AI, meanwhile, could pose a threat to the financial system by giving bad actors better methods for doing scams involving social engineering, email phishing, or text message smishing attacks, according to the report.
The Fed said that, while growing machine learning capabilities can be used to improve security, they also can be used by bad actors to “automate cyber reconnaissance and attacks, further increasing the likelihood and impact of cyber incidents.”
“Threats such as these highlight the importance of collective actions across government and strong collaboration with the private sector in advancing measures to understand and mitigate risks,” the Fed said, in its report.
Federal Reserve promises to monitor financial institutions, work on own internal systems
In addition to threats to financial systems created by AI and cybersecurity, the Fed also focused on threats from insiders, third-party providers, geopolitical tensions, and the global cybercriminal ecosystem as a whole.
“Ransomware groups continue to evolve their techniques and methods as they seek to monetize cyberattacks and exert maximum pressure on victim organizations,” the report states.
The Fed did reassure that it is continuing to monitor financial institutions and work on its own internal systems to help mitigate cybersecurity risks so as to create “a strong internal resilience posture and promote resilience among the financial sector as a whole.”
In relevant news, the leading companies in the AI industry pledged last month to abide by rules created by the Biden administration to ensure the deployment of AI technologies is conducted in a safe manner.
The rules — which were agreed to by Amazon, Anthropic, Google, Inflection, Meta, Microsoft, and OpenAI — also call for all newly deployed AI tech to be fully vetted prior to it being released to the public.
Do you believe quantum computing and artificial intelligence are a threat to the financial system? Let us know in the comments!
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