R Beyond Fear EMBRACING THE DUALITY OF AI IN BANKING By Anne Benigsen, President, CivITas Bank Solutions Regarding AI, most businesses are mainly concentrating on Large Language Models (like ChatGPT), but it is important to stay cognizant of other ways AI can impact security and what banks should be doing to secure themselves, their employees and their data. $25 million was lost by a bank due to AI deep fake technology where the threat actors utilized a digitally created version of the bank’s CFO and other employees and made them “present” during a video conference call in which details of a funds transfer were discussed. The heist started with a phishing message, as many hacks do, impersonating the CFO and instructing an employee to join a call to introduce themselves and make a transfer. While it’s nice to believe your employees know better, would one of your bank employees accept that type of call as verification? During the call, the CFO, along with several other bank employees, participated by video and audio, and the employee was convinced to send out 15 transfers. While the employee had doubts about this transaction, they recognized the CFO as well as some of the other attendees and was ultimately convinced to make the transfers. Incidents like this are often shown in the media and are among the potential pitfalls of AI. However, AI is not a monolithic technology — like any tool, its impact is determined by how it’s applied and in banking, AI can be used for good in many areas. For example, it can be used to help with document review and agreements — there are systems available that dramatically reduce the number of hours spent on contract negotiations. Now they can often be done in seconds, not hours or days. With rising concerns related to instant payment platforms, banks can leverage AI to ensure that real-time, behaviorbased fraud detection is being done — and not just on one platform, but across an entire set of accounts. It can take anomaly detection to a new level and give financial institutions peace of mind as instant payments become more common. Routine and important tasks, like pinpointing which services should be offered to a particular customer, can now be done via AI. With AI, banks can deliver customized products, services and support based on a customer’s financial profile without taking up an employee’s valuable time. Looking to the future, banks will need to embrace AI’s potential while remaining vigilant about its risks. AI has been and will continue to be leveraged by most banking vendors, so demystifying it and educating employees and customers about the pros and cons of AI will be key to staying competitive and ensuring risks are appropriately mitigated. Ultimately, AI should be considered a tool in a bank’s arsenal, not a source of fear. Born from a bank and with years of expertise in regulation and compliance, CivITas Bank Solutions provides tailored information security and technology solutions to banks. Learn more at www.acivitas.com. WE'VE GOT YOU COVERED WWW.CP2LAW.COM DENVER | FORT COLLINS | GREELEY Coan, Payton & Payne, LLC provides a full range of legal services to the banking industry. 21 Colorado Banker
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