The rise of AI-driven cyberattacks is forcing the banking and payments sector to rethink how it protects customer data. Generative AI enables hackers to identify and exploit security gaps more quickly, turning once-theoretical risks into immediate challenges that could damage consumer trust and cost organisations billions.
Cybercrime is evolving rapidly. Financial firms such as PayPal have reported a surge in automated attacks powered by AI, where vulnerabilities are exploited within hours rather than months. At the same time, quantum computing presents a slower-moving but equally serious threat. There are reports of hackers stockpiling encrypted data with plans to decrypt it when quantum technology becomes viable, a method known in the industry as “harvest now, decrypt later.”
This combination of threats is increasing pressure on organisations to respond more quickly. Companies are now deploying their own AI tools in an effort to keep pace with cybercriminals. Continuous, automated defence is becoming the norm, leading to a fundamental shift in how the technology and payments sectors manage cybersecurity.
Although AI poses an immediate challenge, quantum computing could be even more disruptive. Experts warn that a sufficiently advanced quantum computer could instantly compromise vast amounts of stored data, rendering current encryption methods obsolete. In response, many institutions are prioritising what is known as crypto agility, or the ability to rapidly shift to encryption standards that are resistant to quantum-based attacks.
In the future, banks might face stricter regulatory demands. However, experts argue that the urgency extends beyond following rules. It is also about protecting brand reputation and long-term business viability. There is a growing perception that failing to invest in strong cybersecurity measures could lead to financial losses even before regulatory penalties are enforced. As threats expand, this is increasingly seen as a critical economic issue for global leaders.
