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Warning about the Crafty Falcon group using artificial intelligence against banks

CERT-In warns that the Crafty Falcon group uses AI tools to execute attacks autonomously and generate attack scenarios quickly. The group has targeted banks, cryptocurrency platforms and digital payment providers, steal

CERT-In warns that the Crafty Falcon group uses AI tools to execute attacks autonomously and generate attack scenarios quickly.

The group has targeted banks, cryptocurrency platforms and digital payment providers, stealing digital keys and API credentials to make illegal transfers.

The report also describes tactics involving exposed APIs, stolen passwords and missing multi-factor authentication.

How attacks are carried out

Attackers steal digital keys and login credentials, which allow them to make illegal money transfers as if they were authorized users. Their tactics include exploiting exposed connection points between applications, using stolen passwords, and exploiting systems that do not have second-password access control enabled.

To avoid detection, attackers try to delete files that record system activity (logs) and tamper with security tools that monitor network traffic.

Trap with the ARTEX tool

Researchers have discovered copies of the ARTEX tool, available on popular code-sharing platforms, that contain a β€œbackdoor.” This hidden functionality allows third parties to gain full control (administrative rights) of the system where the tool is installed.

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The backdoor is activated when the user types a special character in the CAPTCHA field while logging in. Between November 2 and 4, 2026, at least 62 such infected control consoles were detected operating openly on the internet.

In response to the developments, CERT-In issued new guidelines for the proper governance and security of systems based on artificial intelligence.

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