'AI may have been used in S. Korean banking hacks'

Artificial intelligence (AI) may have been used in a string of cyberattacks targeting South Korea's financial sector, said President Lee Jae-myung yesterday as police announced an investigation.

More than seven financial institutions, including some of the country's biggest banks, have reported customer data breaches in the past week.

The ability of AI systems to find previously unknown software vulnerabilities and hack banks, companies or government infrastructure is in the global spotlight as leading labs release ever-more advanced models.

"There are signs that AI was used in some hacking attacks, causing considerable concern and anxiety among the public," Lee told a cabinet meeting yesterday.

"We have now reached a point where AI can make (hacking) easy for even those without special skills."

More than 68,000 people have been affected by the hacks, according to the Financial Services Commission.

"With advances in AI technology, hacking methods are becoming increasingly sophisticated, while the scope of the damage is spreading across all areas on a scale that is difficult to compare with the past.

"The government, companies and our society as a whole need to recognise the seriousness of the current situation and remain particularly vigilant," Lee added.

Police said an investigation had been launched at the president's urging.

A government official said it was "highly likely" that Artex AI, an open-source security testing tool believed to be a Chinese AI system, was used in the attacks.

But officials have said its use does not indicate the attackers were Chinese.

"Attackers can move between and use IP addresses in multiple locations, so it is impossible to identify an attacker based on an IP address alone," said Park Sang-won, head of the Financial Security Institute.

An IP address, or Internet protocol address, is a unique number assigned to a particular Internet connection.