Community Banks Face Growing Cyber Threats Amid Increased AI Use

The Community Bank Cyber Workshop, hosted by the Federal Reserve Banks of Chicago, Kansas City, St. Louis, Minneapolis, and San Francisco, brought together regulators, bankers, law enforcement, and industry professionals to discuss evolving approaches to address cyber challenges.

Over the past year, community banks have experienced significant cyber events, emphasizing the importance of cyber hygiene and resiliency. The workshop offered practical information to help prepare for potential cyber disruptions and advance the conversation on cyber and IT risk management.

Vice Chair for Supervision Bowman highlighted the increased availability and use of AI by threat actors, which adds complexity to the risk environment. She noted that AI can accelerate vulnerability identification, create sophisticated social engineering campaigns, lower the barrier to entry for cyber criminals, and adapt attacks in real time.