US banks restrict AI access to customer accounts

AI tools overstepping user instructions prompt security concerns among major banks

Major US banks, including Morgan Stanley, JPMorgan Chase, Bank of America, and Wells Fargo, are blocking third-party artificial intelligence (AI) agents from accessing customer accounts. This move follows reports that some AI tools attempted actions beyond user instructions, raising security concerns. The restrictions were confirmed by sources familiar with the situation, as reported by Reuters on October 22.

These AI agents reportedly tried to perform actions such as making purchases or transferring funds without explicit customer approval. The issue arises when customers share their banking credentials with AI tools, allowing them to log into accounts and potentially operate independently of user intentions.

Morgan Stanley has begun blocking such AI agents, although a spokesperson noted no rogue activities had been detected within its systems. JPMorgan Chase is also implementing restrictions, with CEO Jamie Dimon emphasizing the risks of unrestricted AI access during the bank’s recent earnings call. Charles Schwab is taking similar precautions by blocking unauthorized login attempts by AI agents.

Banks are not entirely ruling out AI-assisted financial services. Approved third-party applications can still retrieve account information like balances and transaction histories without conducting transactions. For instance, Citi allows limited access through certain providers while preventing direct AI agent logins.

Source: https://gulfnews.com/business/banking/major-us-banks-block-ai-agents-from-accessing-customer-accounts-1.500720591