Banks mull higher cybersecurity spending after AI-linked hacking incidents

South Korean banks are planning to increase cybersecurity spending and personnel following AI-assisted hacking attacks that exposed customer data. Shinhan, Hana and KB Kookmin banks are strengthening security measures as authorities investigate breaches and expand the probe into cyberattacks

Seoul: South Korean banks are considering increasing spending on cybersecurity systems and personnel following a series of recent hacking attacks on local lenders, industry sources said on Sunday.

Major lenders, including Shinhan Bank, Hana Bank and KB Kookmin Bank, have reported leaks or exposure of customer data in hacking incidents this month, raising concerns about the potential scale of the breaches, reports Yonhap news agency.

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Shinhan Bank said on October 1 that personal information belonging to about 25,000 customers, including their names, phone numbers and annual incomes, had been leaked. The hackers reportedly used advanced artificial intelligence (AI) tools in the attack. Similar leaks or exposure of customer information were also reported at other banks.

In response to the AI-linked attacks, KB Kookmin Bank plans to increase its cybersecurity budget to more than 100 billion won (US$74 million) in 2027, up from 86.07 billion won this year, according to the sources. Shinhan Bank plans to allocate a record budget for cybersecurity, while Hana Bank plans to invest tens of billions of won in strengthening its security systems next year, the sources said.

The banks also plan to increase their cybersecurity personnel next year. The moves follow President Lee Jae Myung’s call over the weekend for a thorough investigation into the attacks. The Financial Supervisory Service (FSS) identified Internet Protocol (IP) addresses in 12 countries on Monday that are suspected of being linked to the AI-assisted hacking attacks. However, investigators were unable to determine the locations linked to some of the IP addresses.

South Korean police said on Friday they have assigned more people to a team probing a series of recent hacking attacks against financial institutions. The move is expected to bolster the investigative capabilities of local law enforcement, which is trying to respond to the latest unlawful cyber activities.

The National Office of Investigation said it added 15 more personnel to the 28-member team probing the attacks against multiple financial companies, including Hana Bank, KB Kookmin Bank and Shinhan Bank.