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India warns AI-powered hackers targeting crypto exchanges at ‘machine speed’
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- DeepHorus
India’s cybersecurity agency warned Wednesday that an AI-assisted threat actor is escalating attacks on cryptocurrency exchanges and financial firms. CERT-In designated the actor “CRAFTY FALCON” in an update to an October advisory. The agency said the threat is active and ongoing.
CERT-In said CRAFTY FALCON surveys targets with machine intelligence and operates at “machine speed.” It strikes by invoking victims’ own payment and disbursement APIs. The campaign has hit nonbank lenders, digital lending platforms, fintech companies, payment aggregators, service providers, and crypto exchanges.
Attackers exploited vulnerable applications and exposed testing environments, CERT-In said. They used shared credentials and access tokens to enter production systems. They also targeted cloud infrastructure to deploy malicious files. AI tools helped generate and refine attack scripts rapidly.
Some attackers reverse-engineered application code to build tailored exploits. Certain attacks were timed for weekends and holidays to delay detection. In some incidents, small test transactions validated unauthorized transfers before larger sums moved. CERT-In reported stolen wallet keys and drained funds.
The agency did not name affected crypto exchanges or quantify losses. It advised entities to treat the campaign as active and escalating. CERT-In urged around-the-clock monitoring, more staffing, and lower alert thresholds during low-coverage windows.
The warning adds to evidence that hackers are using AI against financial institutions. In October, CrowdStrike reported an attacker using ARTEX, Claude Code, and other AI models to breach South Korean financial firms. Security leaders say defenders need access to the strongest AI tools.
Solana Foundation CISO Michael Coates said top models must be in defenders’ hands because attackers will have capable tools. TRM Labs’ Ari Redbord said attack techniques outpace single launch-day audits. CERT-In’s advisory signals that AI-enabled financial cyber threats are likely to keep accelerating.
