AI Cyber Fraud in India: NBFCs Report ₹300 Crore Losses, Chinese AI Tools Under Investigation

AI Cyber Attack in India 2026: India's non-banking financial companies (NBFCs) are facing growing cybersecurity concerns following reports of sophisticated digital attacks that have allegedly resulted in losses of nearly ₹300 crore over approximately two months. Investigators suspect that cybercriminals may be using artificial intelligence-powered tools to identify security weaknesses, manipulate payment systems and steal money from financial institutions.

According to a report cited by The Economic Times, around 150 complaints and First Information Reports (FIRs) have been registered across the country in connection with suspected cyberattacks targeting smaller finance companies.

The incidents have raised concerns about the security of digital lending platforms, customer information and financial transactions.

Investigators are also examining the possible involvement of certain AI-assisted hacking tools, including platforms reportedly linked to Chinese developers. However, the exact technologies used and their connection to individual incidents have not been conclusively established.

Cybercriminals Allegedly Steal Nearly ₹300 Crore From NBFCs

The reported attacks have primarily affected smaller non-banking financial companies operating in India's financial services sector.

According to the supplied report, cybercriminals have allegedly diverted approximately ₹300 crore from affected institutions over the past two months.

Several incidents reportedly occurred during the preceding six weeks, suggesting an increase in attacks targeting vulnerable financial systems.

In one reported case, a Delhi-based NBFC suffered a loss of ₹7.5 crore during an initial cybersecurity breach.

Only a few days later, the same company was allegedly targeted again, resulting in an additional loss of ₹7.25 crore.

The combined reported loss from these two incidents reached ₹14.75 crore.

The repeated attacks have raised questions about whether affected companies are identifying and addressing security vulnerabilities quickly enough.

Smaller Finance Companies With Business Below ₹1,000 Crore Targeted

Investigators believe cybercriminals are focusing on relatively small NBFCs, particularly those with business operations valued at approximately ₹1,000 crore or less.

Such institutions may have fewer resources available for cybersecurity infrastructure compared with larger banks and financial organisations.

Limited security monitoring, outdated software, inadequate access controls and insufficient incident-response procedures can increase exposure to digital threats.

According to the report, India had 8,502 registered NBFCs as of October 15, 2026.

The reported cybercrime complaints are spread across multiple cities.

These figures are based on the supplied news report and have not been independently verified against official police records.

Chinese AI Tools Suspected in Cyberattack Investigations

One of the major concerns surrounding the incidents is the possible use of AI-assisted cyberattack platforms.

The report mentions tools identified as CyberStrike and ARTEX among the technologies being examined by cybersecurity investigators.

It also refers to several Chinese-developed artificial intelligence models, including DeepSeek, Alibaba's Qwen, Moonshot AI's Kimi and Zhipu AI's GLM.

However, the presence or possible use of a general-purpose AI model does not establish that its developer participated in, authorised or had knowledge of any criminal activity.

These models have legitimate applications, and the report does not establish that they were specifically designed for cybercrime.

Investigators are examining whether criminals combined widely available AI capabilities with other malicious tools to carry out financial fraud.

How AI May Help Criminals Identify Security Weaknesses

According to the reported investigation, attackers may spend around 10 to 12 days studying a targeted organisation before attempting to compromise its systems.

During this period, criminals may seek information about internal payment processes, authorised digital identities and weaknesses in security controls.

Artificial intelligence can potentially accelerate the analysis of large amounts of information and help criminals create more convincing fraudulent communications.

Experts warn that AI-assisted automation may also reduce the time required for certain stages of a cyberattack.

However, not every cyberattack involving automation is necessarily AI-driven, and investigators must establish the technologies used in each case.

The increasing availability of sophisticated digital tools has made it particularly important for financial institutions to maintain strong security controls.

Why Repeated Cyberattacks Are a Serious Concern

The reported case involving a Delhi-based NBFC illustrates the risks associated with unresolved cybersecurity weaknesses.

A company that experiences an attack may remain vulnerable if compromised credentials, unauthorised access or other security problems are not fully addressed.

Cybercriminals may attempt further attacks before the affected organisation completes its investigation and recovery process.

Experts therefore recommend that financial institutions conduct thorough security assessments after a breach rather than focusing only on restoring normal operations.

Regular vulnerability testing, access reviews and continuous monitoring can help reduce the risk of repeated incidents.

SBI Customer Data Leak Also Raises Security Concerns

The supplied report separately refers to a data security incident involving the State Bank of India (SBI).

It claims that approximately 3.75 lakh records were associated with a dataset reportedly exposed on the dark web.

The report also states that SBI had sent alerts to certain individual customers regarding a data-related security concern.

However, the reported dataset's authenticity, contents and connection to SBI have not been independently established here.

The alleged incident should not be treated as proof that SBI's core banking systems were compromised or that customers' money was stolen.

Customers should rely on official bank communications rather than unverified messages circulating online.

CERT-In Advises Organisations to Strengthen Cybersecurity

India's national cybersecurity incident-response agency, the Indian Computer Emergency Response Team (CERT-In), plays an important role in monitoring cyber threats and issuing security advisories.

According to the supplied report, organisations have been advised to strengthen their cybersecurity arrangements and prioritise threats associated with tools such as ARTEX and CyberStrike.

Security teams should regularly review their systems, update vulnerable software and monitor suspicious activity.

Financial institutions can reduce exposure by implementing strong authentication, limiting access to sensitive systems and maintaining effective transaction-monitoring procedures.

Employee training is equally important because attackers may attempt to exploit human error through fraudulent emails, messages or phone calls.

Organisations should refer to official advisories published on the CERT-In website for verified security guidance.

Customers' Personal and Financial Information May Also Be at Risk

The consequences of cyberattacks may extend beyond direct financial losses suffered by lending institutions.

If criminals gain access to customer databases, they may obtain sensitive information such as names, contact numbers, loan details and other personal records.

Such information could potentially be used to conduct targeted phishing or impersonation scams.

Mandar Patil, Executive Vice President at cybersecurity company Cyble, reportedly warned that AI tools can help criminals create realistic conversations in regional languages, including Hindi and Tamil.

This capability could make fraudulent calls and messages more convincing.

For example, a caller who already knows a customer's name, lending company and loan amount may appear to be a genuine financial representative.

The caller could then attempt to obtain confidential banking details, passwords or authentication codes.

Consumers should remember that possession of personal information does not prove that a caller represents a legitimate bank or finance company.

How NBFC Customers Can Protect Themselves From AI-Based Fraud

Customers who have taken loans from NBFCs or use digital lending applications should remain cautious about unexpected financial communications.

Important safety measures include:

• Never disclose OTPs, banking passwords, UPI PINs or other confidential authentication details.

• Verify suspicious calls directly through the lender's official customer service number.

• Avoid installing applications received through unknown messages or unofficial links.

• Do not approve unexpected payment requests or account verification instructions.

• Review bank statements and loan account transactions regularly.

• Report suspicious activity to the concerned financial institution immediately.

• Use official websites and applications for loan repayments and account updates.

If unauthorised financial transactions occur, affected individuals should promptly contact their bank and report the incident through India's cybercrime helpline 1930 or the National Cyber Crime Reporting Portal.

Quick reporting may improve the chances of authorities tracing or freezing fraudulent transfers, although recovery is not guaranteed.

Why AI-Powered Cybercrime Is Becoming a Major Challenge

Artificial intelligence is transforming the financial sector by improving customer service, fraud detection and operational efficiency.

However, criminals may also misuse AI capabilities to create convincing messages, impersonate individuals and automate certain malicious activities.

This creates additional challenges for financial institutions that rely heavily on digital payment systems and customer databases.

Smaller lenders may be particularly exposed when cybersecurity investment does not keep pace with the expansion of their digital operations.

Experts believe that stronger monitoring, employee awareness and faster incident response will be essential for reducing these risks.

Final Takeaway

The reported ₹300 crore cyber fraud involving Indian NBFCs has highlighted the growing importance of cybersecurity in the financial services industry.

With approximately 150 complaints or FIRs reportedly registered nationwide, investigators are examining the suspected use of AI-assisted tools and possible connections between different incidents.

Although certain Chinese-developed AI tools have been mentioned in the reports, their specific involvement has not been conclusively established.

Financial institutions should strengthen their digital security systems, while customers must remain alert to suspicious calls, fraudulent payment requests and messages seeking confidential information.

The most important precaution is simple: never share sensitive financial credentials with anyone, even if the caller appears to know your personal or loan details.

Disclaimer: The reported losses, complaint counts, individual incidents and suspected technologies are based on the supplied news report. These allegations have not been independently verified against official investigative findings. References to AI products do not imply wrongdoing by their developers.