<\/p>\n
OpenAI Chief Executive Sam Altman said he is concerned that financial firms aren\u2019t adequately dealing with a rise in artificial intelligence-enabled scams against bank customers, highlighting a chief concern of lenders as the emerging technology grows more sophisticated.<\/p>\n<\/p><\/div>\n
\u201cI am very nervous about this,” Altman told a packed room of bank executives and regulators on Tuesday during a conference held by the Federal Reserve in Washington, D.C.<\/p>\n
\u201cA thing that terrifies me is, apparently, there are still some financial institutions that will accept a voice print as authentication,” he said. \u201cFor you to move a lot of money, or do something else, you say a challenge phrase, and they just do it. That is a crazy thing to still be doing.”<\/p>\n
AI has \u201cfully defeated that,” Altman said in an onstage interview with Michelle Bowman, the Fed\u2019s top banking regulator as its recently confirmed vice chair for supervision. AI has \u201cfully defeated most of the ways that people authenticate currently, other than passwords,” he said.<\/p>\n
\u201cBut all of these fancy, you know\u2014take a selfie and wave, or hear your voice, or whatever, I am very nervous that we have an impending\u2014a significant impending fraud crisis because of this,” he said.<\/p>\n
Altman\u2019s firm created ChatGPT, which popularized generative AI in the mainstream when it was launched in late 2022. With ChatGPT\u2019s introduction, and the new ways individuals and companies are using AI tools, regulators have cautioned the public to be vigilant of scammers who abuse AI and could put consumers\u2019 money and identities in jeopardy.<\/p>\n
The Treasury Department\u2019s Financial Crimes Enforcement Network, known as FinCEN, said in an alert it issued last year that more financial institutions are reporting that they suspect people are using \u201cdeepfake media, particularly the use of fraudulent identity documents to circumvent identity verification and authentication methods.”<\/p>\n
Banks have long used AI to help identify suspicious patterns in consumers\u2019 transaction data, like scouring unusual purchases for signs that their credit card information may have been stolen.<\/p>\n
On Tuesday, Altman said the spread of financial fraud attempts through voice calls\u2014impersonating a person\u2019s child or parent requesting money, for instance\u2014could take on new forms.<\/p>\n
\u201cRight now, it\u2019s a voice call. Soon, it\u2019s going to be a video FaceTime and be indistinguishable from reality,” he said, adding that it is important for people to learn how to authenticate requests and avoid schemes.<\/p>\n
Bowman responded with a signal that the central bank may seek out new ways of using AI to combat these problems.<\/p>\n
\u201cThat might be something we could think about partnering on, the identification of those hallucinations, or the intentional impersonations,” she said. \u201cI think it would be a really beneficial thing to engage in.”<\/p>\n
Banks and fund managers around the world are on guard for these types of malicious activities that use AI to target customers\u2019 cash. They are also embracing AI\u2014sometimes aggressively, depending on the company\u2014to try to make money, save money, or keep a competitive edge.<\/p>\n
OpenAI sells products to financial firms to automate their employees\u2019 tasks, draft reports, and analyze data. It would benefit from more companies becoming aware of how they might use AI tools.<\/p>\n
\u201cI promise I didn\u2019t come here for the TV commercial,” Altman joked at the conference of industry insiders on Tuesday, \u201cbut we\u2019d love to work with any of you, of course.”<\/p>\n
Write to Rebecca Ungarino at rebecca.ungarino@barrons.com<\/i><\/p>\n
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