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Australia warns finance firms over AI-driven cyber risks

The Australian Securities and Investments Commission (ASIC) told financial firms to strengthen cyber defenses, warning that advanced AI models such as Anthropic model Mythos can expose software flaws.

ASIC commissioner Simone Constant said firms should act before the threat becomes clearer and focus on basic cyber resilience measures.

The warning came a month after the Australian Prudential Regulation Authority said security practices were struggling to keep up with AI.

Separate research from the Cambridge Centre for Alternative Finance found only 20% of regulators had advanced AI adoption and that supervisors lagged financial firms in tracking emerging harms.

🔗 Source: Reuters

🧠 Food for thought

Implications, context, and why it matters.

Mythos can find flaws and write working exploits

  • The concern goes beyond flaw hunting. Anthropic says Mythos Preview can also write working exploits for software vulnerabilities 1.
  • Claude Mythos Preview independently found and exploited a 27-year-old bug in OpenBSD, an open-source operating system built for security 1.
  • It also used CVE-2026-4747 to get remote code execution as root through Network File System (NFS, a protocol for accessing files over a network) on FreeBSD, another open-source operating system 1.
  • Anthropic says the model found thousands of high-severity vulnerabilities in major operating systems and web browsers, many missed for years or decades 2.
  • Anthropic has limited access to Mythos Preview. Project Glasswing brings in Amazon Web Services / Apple’s security teams / Google / Microsoft / NVIDIA / others to secure widely used software before similar tools spread 2.

Cyber defense costs and timelines are changing

  • This capability cuts the time and cost of launching cyberattacks to the price of an application programming interface (API) key 3.
  • Bugs once treated as low risk now matter more because Mythos Preview can build exploits in hours. Expert penetration testers, professionals hired to simulate cyberattacks, said the same work would have taken weeks 1.
  • Fixing software faster becomes the main problem. Financial firms and other companies may need quicker patch cycles plus more automated defenses 4.
  • Tests on other frontier AI models suggest advanced cyber skills come with broader AI progress, so the threat is likely to grow 5.

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