So disturbing for consumers. If you have a bank account, theres
So disturbing for consumers. If you have a bank account, theres
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#msg6036959Zakangel : This has been on my mind for quite some time. Yet, I haven't done squat about it. Did you freeze certain accounts and how do you initiate blocks?
This doesnt effect someone from stealing money out of bank accounts tho, just from taking out crediit cards and loans etc.
#msg6036963MissAmericanPie : Oh no! This is scary. Banks are where we think our money is safe at.
thank you. I actually sat down to initiate the hold on our accounts at the credit reporting agency's and totally got distracted. Very concerning we have to take these actions.
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#msg6036959Zakangel : This has been on my mind for quite some time. Yet, I haven't done squat about it. Did you freeze certain accounts and how do you initiate blocks?
Under federal law (specifically Regulation E of the Electronic Fund Transfer Act), consumers are heavily protected against unauthorized electronic thefts, but the legal landscape changes if a consumer voluntarily gives an AI tool their credentials.
If a cybercriminal uses a malicious AI bot to crack passwords, bypass security protocols, or dupe a consumer into a phishing trap to drain the account, this is legally considered an unauthorized electronic fund transfer.
• The Rule: Under Regulation E, if a consumer informs the bank within two business days of learning about the fraud, their maximum liability is capped at $50.
• Late Reporting: If the consumer reports it after two business days but within 60 days of their bank statement being sent, their liability can rise to $500. Waiting longer than 60 days can make the consumer liable for the full amount.
• Negligence: Even if a consumer falls for a highly convincing AI deepfake or phishing bot, federal guidance stipulates that consumer negligence (like accidentally falling for a trick) does not void Regulation E protections.
A massive gray area has emerged around "agentic AI"-third-party AI personal assistants (like shopping bots or automated wealth managers or password storing agents) that users explicitly trust with their banking usernames and passwords to perform tasks on their behalf.
• The Problem: If a consumer explicitly shares credentials with a legitimate AI bot, and that bot goes rogue, suffers a glitch, or makes an unauthorized transaction, major banks like Wells Fargo and Bank of America have updated their terms of service to state that the consumer assumes liability for the loss.
• The Bank's Defense: Because the customer intentionally bypassed security by sharing passwords, the bank treats the AI bot as an "authorized delegate". As far as the bank's servers can tell, the log-in was legitimate, and current laws do not explicitly protect users from mistakes made by their own chosen software.
• Bank Crackdown: To avoid these messy disputes, top institutions including JPMorgan Chase, Morgan Stanley, and Citi are actively blocking unauthorized third-party AI agents from connecting to customer accounts altogether.
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Mind blowing that anyone would even consider having an AI bot handle one's financial transactions. Thank you for mentioning this.
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