Swiss financial regulator warns banks, insurers over rising cyberattacks, AI risks

Switzerland’s financial regulator has warned banks and insurers about growing threats from cyberattacks, artificial intelligence and emerging technologies, local media reported Saturday.

Marlene Amstad, chair of the Swiss Financial Market Supervisory Authority’s (FINMA) board of directors, said cyberattacks had increased significantly across the country’s financial sector.

“We are seeing a marked increase in cyber attacks – amounting to a third – across all the financial institutions we supervise,” Amstad told Swiss financial newspaper Finanz und Wirtschaft.

Asked about the potential threat posed by advanced AI models to banking giant UBS, Amstad said the risks were not limited to a single institution.

“The threat posed by highly developed AI affects the entire sector,” she said.

FINMA has placed direct responsibility on financial institutions to prevent a systemic crisis, requiring them to keep operational risks under control, particularly those linked to third-party service providers.

Amstad said the pace of technological change posed a major challenge for regulators.

“We must be quick enough to keep pace with technological development,” she said, adding that FINMA was expanding its internal use of AI and strengthening international cooperation.

She also urged financial institutions and authorities to prepare for quantum computing, which remains under development but could have “major implications for the security” of the financial system.