Write Hatem Mohamed
Dr. Sherif Hazem, Deputy Governor of the Central Bank of Egypt for Cybersecurity, warned of the escalating risks of AI-powered digital financial fraud, stressing the need to deal with it “seriously” due to the direct threat it poses to customers and the banking sector.
This came during his speech at the 5th edition of the Information Security and Cybersecurity Conference CAISEC 2026, where he conveyed the greetings of Central Bank Governor Hassan Abdalla to all attendees, participants, and organizers, and praised the level of organization and broad participation by experts and relevant institutions.
Hazem explained that the emergence of large-scale generative artificial intelligence models (LLMs) has drawn the attention of central banks worldwide, given their strong capability to detect security vulnerabilities, in addition to shortening the time window between a vulnerability’s discovery and its exploitation. This has increased the complexity of cyber threats and the speed of their evolution.
He added that new cyber challenges now carry a special character within the Egyptian financial sector, highlighting the importance of dealing seriously with AI-powered digital financial fraud systems, which could push customers into executing unplanned financial transfers through advanced social engineering techniques. He also warned of rising risks of customer identity spoofing, which threatens traditional verification mechanisms, alongside risks linked to digital interdependence, where financial institutions’ reliance on a limited number of technology providers makes any breach of a single point capable of expanding and impacting the entire sector.
He affirmed that the Central Bank of Egypt continues to continuously develop its cybersecurity system, and is currently working on preparing the second version of the Cybersecurity Framework for the banking sector, in addition to establishing a national company for digital identity aimed at reducing fraud risks and enhancing the reliability of digital transactions. He also pointed to the role of the Financial Sector Computer Emergency Response Team in strengthening connectivity between institutions, which improves early threat detection capabilities, enables warning sharing, and accelerates sector-wide response.
He stressed that cyber risks have become too large for a single institution or country to face alone, affirming that integration and partnership represent the cornerstone for building a safer and more resilient system. He expressed his aspiration that the outcomes of CAISEC would contribute to enhancing the ability to secure against unforeseen threats, thanked the organizing company, and affirmed that the ambition and capabilities of youth represent the first line of defense in confronting cyber challenges today and tomorrow.
