An AI cyberattack has targeted some of Wall Street’s biggest hedge funds, with hackers reportedly using AI to mimic employees’ voices to gain access to internal systems. According to a Reuters report published on Wednesday, the attackers carried out coordinated voice phishing, or “vishing,” campaigns by creating AI-generated voices that sounded like trusted employees, allowing them to make convincing fake phone calls to staff.
AI Cyberattack Attempt Blocked at Two Sigma
Two Sigma Investments is among the victims of the attack and confirmed that it thwarted an AI cyberattack before it caused any harm.
According to a statement from Bloomberg, its IT department was able to counteract the voice phishing attack without any harm being done to its system and data. It is also reported that Two Sigma is one of the many companies whose systems were hacked.
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Citadel and Point72 Also Targeted
Bloomberg reported that Ken Griffin’s Citadel and Steve Cohen’s Point72 Asset Management were also among those on the list of companies attacked.
Both companies refused to disclose whether the hackers gained access to their systems. It was also mentioned in the report that some unnamed private equity firms were also targeted using voice phishing.
Hackers Used AI to Copy Employee Voices
The AI cyberattack reportedly involved technology that could listen to phone conversations and recreate a person’s voice, speaking style, and tone. By doing this, hackers were able to place realistic phone calls that appeared to come from trusted employees inside the company.
Cybersecurity experts say AI-powered scams are becoming more convincing as the technology improves. Criminals can now create fake voices in a short amount of time, making it much harder for employees to tell the difference between a real caller and a scammer.
FINRA Strengthens Response to AI Cyberattack Threats
The event occurs against the backdrop of regulators still endeavoring to enhance cybersecurity in the financial industry.
Back at the beginning of the year, the Financial Industry Regulatory Authority (FINRA) launched the Financial Intelligence Fusion Center, enabling the member firms to exchange information on cyber threats swiftly.
However, FINRA refused to comment on this specific AI cyberattack, but according to a spokesman cited by Bloomberg, the regulatory body had already contacted the affected firms.
Will Wilson, the CEO of the IT security company called Antithesis, noted that the development of artificial intelligence technologies has greatly facilitated the execution of such cyberattacks.
As he emphasized, those kinds of attacks that used to require a lot of hacking skills can now be organized on a large scale due to the use of artificial intelligence. He advised financial organizations to strengthen their IT security systems.
No Confirmed Breaches or Financial Losses
Thus far, no incidents of breached systems, loss of customer data, ransom demands, or financial loss have been confirmed in relation to this AI cyberattack.
The event underscores the growing threat posed by AI-based cyberattacks to the banking industry. With Wall Street institutions performing billions of dollars’ worth of transactions daily, security experts think that corporations will require more advanced security systems in light of developments in AI.
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