India’s national cybersecurity agency has issued a stark warning about an AI-powered hacking group targeting cryptocurrency exchanges and other financial firms. The Indian Computer Emergency Response Team (CERT-In) identified the threat actor as “CRAFTY FALCON” and described it as an active and escalating campaign. The group uses AI tools to survey targets, operate at machine speed, and exploit payment APIs to siphon funds.
According to CERT-In, the attackers have breached nonbank lenders, fintech companies, and crypto exchanges by exploiting vulnerable applications and cloud infrastructure. They deploy malicious files, reverse-engineer application code, and time attacks during weekends and holidays to avoid detection. In some cases, they test small transactions before stealing larger sums or draining cryptocurrency wallets.
The advisory follows reports from cybersecurity firm CrowdStrike, which detailed similar AI-assisted attacks on South Korean financial firms. CERT-In has urged at-risk companies to enhance security monitoring, especially during low-coverage periods. Experts like Solana Foundation’s Michael Coates emphasize the need for defenders to access advanced AI tools to counter such threats.