The regulator said while banks already had strict security procedures in place, some were not engineered to keep pace with the development of ​AI. (Image: Reuters) Australia’s financial system regulator said on Thursday the country’s banks were not keeping pace with AI industry developments, warning frontier AI systems such as Anthropic’s Mythos had the potential to lead to larger and faster cyber attacks. In a letter to banks, the Australian Prudential Regulation Authority (APRA) said most of the ⁠industry’s ​information security practices were struggling to match the rate of change in AI. The regulator said the speed of AI development could pose a growing threat to Australia’s financial services. “It also warns frontier AI models such as Anthropic’s Claude Mythos, which could enhance the discovery of vulnerabilities by bad ​actors, ​are expected to further increase the probability, speed and ⁠scale of cyber attacks,” APRA said in a statement referencing a review that it had conducted.…