Japanese securities brokerage IwaiCosmo has spoken out about an incident involving unauthorized trades, blaming the use of malicious AI. The disclosure comes as financial institutions increasingly face the risk of attacks carried out through artificial intelligence technology.
According to Kyodo news agency, IwaiCosmo confirmed it had detected unauthorized trades and attributed the cause to the malicious abuse of AI. The company is working with the authorities to establish the scope of the impact and to put measures in place to prevent a recurrence.
The incident fits a broader trend of rising cyberattacks targeting the financial sector, where bad actors can exploit vulnerabilities or use automation tools to carry out fraud. Cybersecurity experts advise companies to strengthen system monitoring and raise awareness of the risks posed by malicious AI.
IwaiCosmo has not yet disclosed details on the scale of the damage or the identities of those involved. The company said it will continue to update information as the investigation produces results.
