Fed report highlights emerging cyber threats, including generative AI

The Federal Reserve listed the proliferation of generative artificial intelligence (AI) tools among areas of emerging cybersecurity threats for banks to monitor as part of its annual resilience report.

The report, published Tuesday, outlines measures the Fed has taken to improve its own cybersecurity controls, how the agency is supervising the activities of covered institutions in the space, and what global developments and technologies pose increased risk of presenting cyber threats.

This year, the Fed noted generative AI “may … provide threat actors with improved methods for performing social engineering, email phishing, and text messaging smishing attacks compromising access into firms’ systems, emails, databases, and technology services.”