What happens when the banks themselves decide it is safer to switch off their systems than risk being hacked?
Japan is already preparing for that possibility, and Western banks are facing the same growing cybersecurity challenge.
This is no longer just a question of stolen passwords or fraudulent transactions. Artificial intelligence is changing the speed and sophistication of cyberattacks, raising serious questions about the reliability of the banking systems we depend on every day.
Japan is raising the alarm
In May 2026, Japan’s Financial Services Agency (FSA) and Bank of Japan (BOJ) issued a request to financial institutions to strengthen their defences against emerging threats from advanced AI.
The warning followed the development of increasingly capable AI systems, including Anthropic’s Claude Mythos, which has demonstrated the ability to identify thousands of serious software vulnerabilities.
Japan’s banking industry has also raised the possibility of temporarily suspending ATMs, online banking and other services if sophisticated cyberattacks threaten customers’ assets.
This is an important distinction: Japan has not ordered banks to shut down their ATMs. Regulators have called for stronger cyber resilience, while the banking industry’s leadership has acknowledged that temporary shutdowns could become a protective measure.
The thinking is straightforward: it may be safer to temporarily switch off a vulnerable system than allow criminals to gain access to it.
Sources: Japan FSA, Bank of Japan and Reuters.
Financial Services Agency+2
This is not happening in isolation: Banking incidents around the world
Recent events in November 2026 demonstrate how vulnerable financial services can be to cybercrime, technical failures and operational disruption.
Here are some of the incidents making headlines:
1. France – Crédit Mutuel Arkéa
On 4 November, the bank disclosed fraudulent transactions following a cyberattack. Approximately €100 million was reported to have been stolen. Some transactions were temporarily suspended while the bank secured its systems. The bank said customer deposits were unaffected.
Reuters+1
2. Taiwan – Bank SinoPac
On 3 November, 419 customers were affected by 427 unauthorised transactions totalling more than NT$40 million. The bank took its new mobile banking application offline while investigating and reimbursed affected customers.
Focus Taiwan
3. Japan – 128 regional credit unions
On 6 November, a system failure affected 128 Shinkin financial institutions. Customers experienced disruption to ATM withdrawals, deposits, transfers and some branch services. Authorities attributed the incident to equipment failure, not a cyberattack. Services were restored after approximately six hours.
Nippon+1
4. Paraguay – Ueno Bank
On 2 November, regulators placed Ueno Bank into resolution following a serious capital shortfall. Deposits were frozen, affecting almost three million customers. This was a financial failure, not a confirmed cyberattack.
Reuters
5. Brazil – Credit Guarantee Fund (FGC)
On 5 November, the FGC disclosed unauthorised access to personal information held in systems associated with its guarantee-payment processes. The investigation continued, although no financial loss or misuse of the data had been established at the time of its announcement.
FGC+1
6. Russia – Ozon Bank
On 6 November, customers experienced difficulties logging into the banking application and making payments. The bank subsequently announced that services had been restored. No confirmed cyberattack was established in the report.
interfax.com
7. Paraguay – Banking application disruptions
On 4 November, the Central Bank of Paraguay reported interruptions affecting several banking applications due to unusually high demand following the opening of new accounts. ATMs, internet banking and branch services remained available.
Banco Central del Paraguay
Important: These incidents have different causes. Some involved cybercrime, others technical failures, operational disruption or bank insolvency. They should not all be described as hacking incidents. However, collectively they demonstrate how dependent modern financial services are on functioning digital infrastructure.
What about Western banks?
The threat is not limited to Japan or Asia.
Western financial institutions face several overlapping risks:
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AI-assisted cyberattacks and automated vulnerability discovery.
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Ransomware and attacks on banking infrastructure.
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Payment-system and third-party technology failures.
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Data breaches and identity theft.
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Temporary suspension of banking services during security incidents.
The concern is that a major disruption could prevent customers from accessing their money even when their account balances remain intact.
What does this mean for ordinary people?
Imagine waking up one morning and discovering:
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Your banking application won’t open.
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Your ATM card is declined.
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Online transfers are temporarily suspended.
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You cannot withdraw cash.
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Your bank advises customers to wait until systems are restored.
Your money may still be recorded in your account, but that doesn’t necessarily mean you can access it when you need it.
This is an important distinction between owning money in a bank and having immediate access to it.
A sensible question: How much cash do you have available?
This isn’t an argument to abandon banks or keep large amounts of cash at home.
It is a reminder that financial resilience includes having alternatives when technology fails.
Keeping a modest amount of emergency cash, maintaining access to more than one payment method and having a backup bank account are sensible precautions.
For those concerned about broader financial-system risks, holding some physical assets outside the banking system is another consideration.
At FirstGold, we believe understanding the difference between digital financial claims and directly owned physical precious metals is important.
Gold and silver are physical assets. They do not require an ATM, a banking application or an internet connection to exist.
The bigger question is this:
If banks are increasingly preparing for the possibility of switching off their own systems to protect themselves and their customers, how prepared are ordinary people for a banking disruption?
You might not need cash every day. But what happens when you suddenly can’t get it?
Sources and further reading
Disclaimer: This article is for general information and educational purposes only. It is not financial advice, investment advice or a recommendation to withdraw funds from banking institutions. Reported incidents and investigations may evolve as further information becomes available.
