AI-Powered Cyberattacks: How to Defend Against Evolving Threats

The Austin Capital Data Digital Self-Defense Series

By Kirti Kamerkar

”AI is a double-edged sword in the hands of hackers and scammers, offering opportunities to enhance productivity while posing serious risks. While it accelerates tasks like content creation, coding, and data analysis, it also empowers cyber criminals to exploit vulnerabilities and manipulate data faster than ever before.” - Matthew Giannelis, Tech Business News’s editor

Numerous news articles and blogs highlighted the profound impact of artificial intelligence (AI) on cybersecurity in early 2025. Financial institutions, for instance, are grappling with AI-powered cyber threats. A recent survey revealed that 80% of bank cybersecurity executives feel they cannot keep pace with cybercriminals leveraging generative AI for sophisticated attacks, including realistic scams and unauthorized data access.

The FBI warns about the increasing threat of cybercriminals using artificial intelligence (AI) for phishing, social engineering attacks, and voice/video cloning scams. AI enhances cybercrime tactics, enabling faster, more convincing phishing campaigns and impersonations of trusted individuals. The FBI urges individuals and businesses to stay vigilant, implement multi-factor authentication, and educate employees to safeguard against AI-powered attacks.

As AI-powered cyberattacks become more sophisticated, we must understand these threats and learn how to fight against them effectively.

What is an AI-powered cyberattack?[4]

An AI-powered cyberattack, or an AI-enabled or offensive AI attack, leverages AI/ML algorithms to carry out malicious activities. These attacks use AI to automate and enhance the capabilities of traditional cyberattacks, making them more sophisticated, targeted, and challenging to detect.

common AI-powered attacks types[ref4]

common AI-powered attacks types[ref4]

How is AI Used in Cyberattacks?

  1. AI-Powered Phishing

  • Attackers use AI to generate highly personalized phishing emails that are nearly impossible to detect.

  • AI chatbots can automate real-time interactions to manipulate victims.

  • For example, Cybersecurity experts recently warned Gmail, Outlook, and Apple Mail users to be wary of highly personalized phishing emails developed by AI bots. These AI-crafted attacks leverage information compiled from users’ social media accounts, making them dangerously convincing. 

2. Deepfake Attacks

  • Deepfakes are AI-generated forgeries — false images, audio, or video — that appear convincingly genuine.

  • Cybercriminals create realistic AI-generated voices and videos to impersonate executives, leading to fraudulent transactions.

  • Deepfakes are used for disinformation campaigns and blackmail.

  • For example, a fake image of an explosion near the Pentagon circulated on social media in early 2023 and quickly led to an upset in the stock market.

3. Automated Malware & AI-Powered Ransomware

  • AI-driven malware adapts and evolves, making it harder for traditional security measures to detect.

  • Ransomware groups use AI to analyze company vulnerabilities and optimize attack strategies.

  • For example, the Clop ransomware group's MOVEit attack in June 2023 exploited a zero-day vulnerability in MOVEit Transfer to compromise organizations, exfiltrate data, and deploy ransomware. 

4. AI-Enhanced Password Cracking

  • AI algorithms can test millions of password combinations rapidly, making brute-force attacks more effective.

  • For example, PassGAN, a tool trained on leaked password data, can learn common password patterns and generate strong guesses.

  • Password Cracking

5. Smart Botnets & Automated Attacks

  •  AI-powered botnets can launch DDoS attacks by analyzing weak points in a network.

  • These bots can also evade detection by constantly changing their attack patterns.

  • For Example, Mantis Botnet, in 2022, a small but incredibly powerful botnet named “Mantis” infected a relatively small number of about 5000 servers and launched an unprecedented 26 million RPS (requests-per-second) DDoS attack using the HTTPS protocol against ISP, media, telecommunications, finance, and gaming websites. Using powerful servers rather than far less powerful IoT and desktop PCs allowed the Mantis botnet to carry out HTTPS attacks that require far more computational resources to execute.

How to Defend Against AI-Powered Cyberattacks

  1. Use AI-powered security Solutions

  • Use AI-driven threat detection systems to identify suspicious patterns in real-time.

  • A financial institution uses Darktrace’s AI system to monitor its network in real time.

  • Deploy machine learning-based firewalls to detect and block evolving threats.

2. Use Multi-Factor Authentication (MFA)

  • Prevents unauthorized access by requiring multiple verification steps.

3. Use Deepfake Detection Tools

  • Organizations should invest in AI that can spot deepfake manipulations.

  • Deepfake detection technology involves identifying AI-generated content, such as realistic videos or images, created by using deep learning techniques.

  • Examples: sensity, deepware, Bioid, etc.

4. Employee Awareness & Training

  • Regular cybersecurity awareness programs to help employees identify AI-powered phishing attempts.

5. Use Zero Trust Security Model

  • Zero Trust is a security framework requiring all users, whether in or outside the organization’s network, to be authenticated, authorized, and continuously validated for security configuration and posture before being granted access to applications and data.

  • Verify every access request, even from internal users, before granting permissions.

6. Regular Security Updates & Monitoring

  • Keep all systems and software updated with the latest security patches.

  • Monitor network traffic for unusual AI-driven activities.

  • Use physical keys, which offer a robust defense against these evolving threats by providing an unbreachable layer of authentication. It defends against credential stuffing and AI-powered brute force attacks (ref 11)

How to recover from an AI-powered cyberattack

 If you are facing an AI-powered cyberattack, you must take immediate and strategic actions to contain, mitigate, and recover.

1. Identify & Isolate the Attack

  • Detect Anomalies: Use security monitoring tools to identify irregularities in network traffic, system logs, and user behavior.

  • Isolate Affected Systems: Disconnect compromised devices, servers, or user accounts to prevent further spread.

  • Disable AI-Driven Malicious Bots: If the attack involves AI-generated phishing, deepfake social engineering, or automated intrusion attempts, cut off external communications.

 2. Contain the Threat

  • Block Suspicious Traffic: Modify firewall rules and use AI-driven threat intelligence to block further attack attempts.

  • Quarantine Malicious Code: If AI-generated malware or ransomware is detected, isolate infected files and block execution.

  • Disable Compromised Credentials: If the attack exploits stolen or brute-forced credentials, enforce multi-factor authentication (MFA) and force password resets.

3. Analyze and Understand the Attack

  • Identify Attack Patterns: Determine whether the AI-powered attack is using adaptive evasion techniques, deepfake deception, or automated exploits.

  • Examine Logs & Forensic Data: Check system logs, network activity, and endpoint data to understand how AI was used against you.

  • Engage AI in Defense: If you have AI-powered cybersecurity tools, use them to detect adversarial AI patterns and predict further attack vectors.

4. Neutralize the Attack

  • Deploy AI-Powered Counter Measures: Use behavior-based security solutions to fight back against AI-driven malware, phishing, or botnets.

  • Patch Exploited Vulnerabilities: If the AI attack exploits a known system flaw, deploy emergency patches or system updates.

  • Remove AI-Controlled Backdoors: Search for hidden scripts, unauthorized API access, or rogue AI agents installed by attackers.

5. Recover and Strengthen Defenses

  • Restore Systems from Backups: If data was compromised, use offline, tamper-proof backups to restore functionality.

  • Monitor for Residual Threats: Even after the initial attack is stopped, use continuous monitoring to detect hidden malware or AI-driven reattempts.

  • Enhance AI Security Models: Train your cybersecurity AI models with insights from the attack to improve detection in the future.

6. Conduct a Post-Attack Analysis

  • Review Security Policies: Assess weaknesses in network architecture, identity verification, and endpoint security.

  • Audit AI Usage in Your Organization: If the attack involved adversarial AI manipulation, ensure your AI models are hardened against poisoning attacks.

  • Improve Threat Intelligence: Stay updated on AI-powered cyber threats and participate in information-sharing networks.

7. Prevent Future AI-Powered Attacks

  • Adopt Zero Trust Security: Ensure all access is strictly verified and monitored.

  • Use AI for Threat Hunting: Leverage predictive AI analytics to spot potential attacks before they happen.

  • Enhance Employee Awareness: Educate your team on AI-driven deepfake scams, phishing attacks, and social engineering tactics.

Conclusion: Staying Ahead of AI-Powered Cyberattacks

As AI-powered cyberattacks become more sophisticated, automated, and adaptive, organizations and individuals must stay vigilant and proactive in their defense strategies. Traditional security measures alone are no longer sufficient. AI must be leveraged to combat AI-driven threats.

By leveraging AI-powered threat detection, real-time monitoring, physical key-based multi-factor authentication (MFA), and adaptive security protocols, organizations can stay ahead of cybercriminals. Implementing Zero Trust security models, continuous AI-driven threat intelligence, and robust incident response plans is crucial in mitigating evolving cyber risks.

Ultimately, cybersecurity is a continuous battle, and the best defense is a combination of advanced technology, strategic planning, and cybersecurity awareness. Organizations that embrace AI-driven security solutions and foster a culture of cyber resilience will be best equipped to defend against the ever-changing landscape of AI-powered threats. Stay informed, stay protected, and stay ahead!

References

  1. https://www.fbi.gov/contact-us/field-offices/sanfrancisco/news/fbi-warns-of-increasing-threat-of-cyber-criminals-utilizing-artificial-intelligence

  2. https://www.businessinsider.com/banks-ai-cybersecurity-threats-hackers-generative-ai-2025-3

  3. https://abnormalsecurity.com/why-abnormal

  4. https://www.cybersecurity.hk/en/expert-2022-03-31.php

  5. https://www.bioid.com/deepfake-detection/ (More information about Deepfake tools)

  6. https://www.crowdstrike.com/en-us/cybersecurity-101/zero-trust-security/

  7. https://darktrace.com/

  8. https://centralmethodist.libguides.com/fake_news/deepfakes

  9. https://www.beyondtrust.com/blog/entry/password-cracking-101-attacks-defenses-explained

  10. https://blog.cloudflare.com/mantis-botnet/

  11. https://support.microsoft.com/en-us/account-billing/set-up-a-security-key-as-your-verification-method-2911cacd-efa5-4593-ae22-e09ae14c6698#