A report issued by the US Treasury has emphasized the imperative for banks to enhance their risk management frameworks to mitigate the growing threat posed by AI-driven fraudsters and cybercriminals.
Commissioned as a result of an executive order by President Joe Biden in 2023, the report conducted interviews with 42 bank executives to assess their cybersecurity concerns.
Highlighting the escalating concern within the US banking sector, the report underscored the impact of advancements in AI technology and the emergence of deep fakes on the security landscape.
Stating the increasing vulnerability of the financial services sector to cyber threats and frauds, the report emphasized the likelihood of cyber threat actors leveraging emerging AI tools to gain an advantage over their targets.
This report arrives amid a concerning surge in consumer complaints. The FBI's Crime Complaint Center reported a 22% increase in calls from victims of cyber crimes in 2023 compared to the previous year, signaling the pressing need for enhanced cybersecurity measures.
In addition to urging banks to update their risk management frameworks to accommodate AI developments, the report advocated for greater collaboration and data sharing among banks. Furthermore, it called on regulators to adopt a more dynamic approach to rule-making, which would bolster defenses against fraudsters and facilitate the swift deployment of AI tools adhering to robust risk management standards.
The report emphasized the importance of achieving a balanced regulatory environment, which enables institutions to harness AI's potential in combating sophisticated threats while ensuring operational resiliency and financial stability.
Nellie Liang, Undersecretary for Domestic Finance, reiterated the administration's commitment to collaborating with financial institutions to leverage emerging technologies while safeguarding against threats. Liang's statement accompanied the release of the report, underlining the administration's proactive stance towards addressing cybersecurity challenges in the financial services sector.
