3 min readApr 30, 2026 10:00 AM IST 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. Anthropic did not immediately respond to a ‌Reuters request for comment. Potential risks posed by Mythos, which has high-level coding capabilities, have given it a potentially unprecedented ability to identify cybersecurity vulnerabilities, experts have warned. Anthropic has launched …