Indian Agency Warns of AI-Powered Hacker Attacks on Crypto Exchanges

India's cybersecurity agency has issued an alert regarding a rise in digital attacks against cryptocurrency exchanges and financial firms. The group, identified as CRAFTY FALCON, uses artificial intelligence tools to conduct high-speed operations.

Attackers exploit vulnerabilities in applications and testing environments to gain access to production systems. They use shared credentials and access tokens to infiltrate cloud infrastructure. Artificial intelligence helps them quickly create attack scripts and perform reverse engineering on code.

CERT-In reported that the criminals execute test transactions before draining large amounts of funds. Cryptocurrency wallet keys have been compromised during these operations. The attacks are often scheduled for weekends and holidays to hinder immediate detection by security systems.

Financial technology companies and digital lending platforms are also on the target list. The use of language models and penetration testing tools allows hackers to operate with higher efficiency than conventional methods. The agency emphasizes that the threat remains active and continues to hit entities that had already received previous warnings.

the advancement of these artificial intelligence tools may increase operational security costs for companies in the sector and pressure the market to adopt more robust defense protocols against automated attacks.