Governor of the Reserve Bank of India (RBI) Shaktikanta Das issued a warning to financial institutions on Friday, March 15, about the potential dangers of artificial intelligence (AI), stating that this cutting-edge technology might result in a significant increase in cybersecurity threats.
Speaking at the RBI Ombudsman’s annual conference, Das urged financial institutions to make “substantial efforts” to secure consumer data. He also emphasized the importance of fortifying monitoring systems and using technology to identify frauds before they occur.
“As artificial intelligence (AI) develops, new cybersecurity risks may arise. They could expose customers to fraud, identity theft, and unauthorized access to sensitive data. According to Das, financial institutions need to make significant efforts to safeguard consumer data and ensure that any vulnerabilities putting them at risk are quickly found and fixed. “Subtle manipulations (of end customers) based on consumer profiling to nudge him into certain services that may not be the right fit” are just two problems that might arise from inadequate security, he said.
Conclusion
Das did, however, commend developing technologies for their applications in data security, chatbots, fraud prevention, and customer service. Technology and behavioral analysis work well together to analyze consumer behavior anomalies such as transactions made at unusual times, transactions that deviate from regular patterns, unapproved beneficiary additions, etc. The RBI Governor said, “Analysing such factors can help in understanding and preventing fraud.”
