In the past two months, cybercriminals leveraging advanced Chinese AI toolkits have siphoned about Rs 300 crore from smaller non-banking financial companies (NBFCs) across India. Meanwhile, Pine Labs reported a sixfold jump in net profit for the September quarter, signaling robust growth in the payments tech sector.
- Rs 300 crore lost to AI-driven cyberattacks targeting smaller NBFCs
- Pine Labs’ Q2 net profit rises over sixfold to Rs 39 crore
- Government pledges to safeguard press freedom amid DPDP Act concerns
What happened
Indian NBFCs, especially smaller ones with turnover around Rs 1,000 crore or less, have faced a surge in cyberattacks over the past two months, resulting in losses estimated at Rs 300 crore. These attacks have been aided by sophisticated AI-powered toolkits attributed to Chinese platforms like CyberStrike and Artex, which work in tandem with open-source models including DeepSeek and Alibaba’s Qwen. Multiple cities including Mumbai, Delhi, and Chennai have reported numerous complaints.
Separately, Pine Labs, a leading payments technology company, announced a more than sixfold increase in net profit for the second quarter, reaching Rs 38.57 crore from Rs 5.97 crore in the same period last year. The company’s revenue rose by 24% to Rs 806.19 crore, driven by a 45% growth in online payments and a 49% expansion in the mid-market merchant checkout base.
Why it matters
The rise in AI-powered cyberattacks highlights growing vulnerabilities within India’s smaller NBFC sector, which often lack robust cybersecurity defenses. The shift towards AI-enabled hacking methods has compressed the timeframe between breach and damage, raising urgent cybersecurity challenges for financial regulators and institutions.
Pine Labs’ strong financial performance underscores the growing adoption of digital payments and transaction technologies in India. Their expanding merchant network and rising transaction volumes showcase healthy demand despite broader economic uncertainties. Meanwhile, government assurances regarding press freedom amid debates over the Digital Personal Data Protection Act reflect ongoing tensions around digital privacy, regulation, and media independence.
What to watch next
Regulators and cybersecurity agencies in India are expected to strengthen defenses and issue further guidelines in response to the surge in AI-driven cyberattacks, with a particular focus on vulnerabilities in smaller NBFCs. Monitoring developments around the implicated Chinese AI toolkits and hacking platforms will be crucial in anticipating future threats.
Industry observers will closely watch Pine Labs’ upcoming quarters to evaluate whether its strong Q2 momentum is sustained amid increasing competitive pressures and evolving digital payment needs. Additionally, developments surrounding the Digital Personal Data Protection Act and its impact on press freedom and data privacy will remain key political and legal issues.