Government security experts fear cyber criminals could be just three months away from using AI to raid bank accounts with impunity.
The warning has come from Cabinet Office officials working closely with Britain’s AI Security Institute (AISI), which evaluates the technology before it is released to the public.
Sources at the internationally respected institute, who see the most advanced systems at an early stage, have told the Mail on Sunday that Britain could face this ‘nightmare scenario’ within three to five months.
One official told the newspaper that the prospect of ‘AI Armageddon’ could arrive earlier than expected, partly because Chinese laboratories favour models without stringent safety guardrails.
Unlike their Western counterparts, Chinese technology allows developers to remove safeguards more easily, expanding the range of actions an AI model can carry out.
Such protections can block particular words or patterns, or trigger a standard refusal response when users attempt to deploy AI for criminal acts, such as building a bomb.
China is now introducing increasingly capable models whose safety features can be switched off easily, raising fears that fraudsters could target small firms and members of the public far sooner than anticipated.
The official told the MoS: ‘Every Russian and Nigerian hacker will soon get their hands on technology which will be able to break even the most advanced passwords to steal personal financial information, remove company data and commit fraud.’
Government security experts fear criminals could soon use AI to steal directly from bank accounts, according to a warning over the emerging threat (stock image)
The Financial Stability Institute warned this week that banks can no longer respond adequately to increasingly sophisticated technology.
They called on financial institutions to bolster their defences to prevent major hacks and protect customers’ cash.
In a paper published last Wednesday, they say some technology is now so advanced they may only have hours to stop a hacker from breaking in.
Ministers are worried by the rate at which the technology is improving, and expect a deluge of sophisticated attacks.
READ MORE: Elena Rybakina Defeats Aryna Sabalenka to Claim First US Open Title
The MoS understands Ministers are exploring whether more ‘targeted interventions’ will be needed to address national security risks. In a sign of their concern, they claim this would be ‘proportionate’ without hitting growth and innovation.
Tensions about AI soared this week after leading American AI firm, Anthropic, barred Britain’s safety institute from testing its latest model.
One AI expert said this step shows America now treats AI as ‘state secrets and dangerous weapons’.
This weekend, Anthropic said it had thwarted five attempts this year by people using the model to try to make bioweapons.
In a report, the firm said its ‘Claude’ model can help make scientific breakthroughs. But it warned the same biological research capability could also be used to create dangerous superbugs capable of killing millions.
It comes as a global debate about AI was triggered by one of the company’s researchers quitting the firm over an ‘out of control’ AI arms race
He issued a stark warning that the big companies are not acting responsibly, and said there is ‘more than a 10 per cent’ chance of the technology killing ‘all humans’ within the next decade.
It has intensified calls to take AI safety more seriously.
AI safety campaigner Connor Axiotes said: ‘America now doesn’t want us to gain any advantages from their tech – this is bonkers. They obviously don’t trust their closest ally.
‘AI risks have so far not been taken seriously by government. But we are at a turning point. The public want action.
‘I call on any elected official or civil servant to express clearly and publicly their fears about imminent risks from AI. Do not be remembered as the person who failed to act.’
Tory MP Joe Robertson said: ‘AI provides incredible opportunities, but it also presents new threats to our national and economic security. But with Andy Burnham scrapping the AI department, you wouldn’t know it. The new PM should spend less time playing his guitar and more time taking AI seriously.’
A Government spokesperson said: ‘AI is making some cyber capabilities more accessible, but businesses are not defenceless. All firms should be acting urgently to improve their cyber defences, and we have set out the practical steps businesses should take, including adopting Cyber Essentials, following National Cyber Security Centre guidance and managing cyber security at board level.’