The risks of a bank collapse are enormous because of the AI
Banks have a clear goal: to improve surveillance to detect when the disinformation published on social networks via generative AI may influence customer behavior. For example, technology is able to post messages on false risks in terms of security through paid advertisements.
A banking panic because of AI?
Banks and regulators are concerned about the risk of banking panic following the collapse of Silicon Valley Bank. As a reminder, in 2023, customers withdrew $ 42 billion in 24 hours against disinformation on social networks.
In November, the G20 financial stability council warned that generative AI “Could allow malicious actors to generate and propagate disinformation causing acute crises”especially lightning crash and banking panics.
The study by Say No To Disinfo and Fenimore Harper showed content generated by AI to British banks customers. A third party declared himself “extremely likely” to move his money after having seen him, and an additional 27 % “Rather likely”.
Researchers estimate that £ 10, around $ 12.48, spent in social networks to amplify false content, could push for a million pounds of customer deposits.
“The AI making disinformation campaigns easier, cheaper, faster and more effective than ever, the risk emerge for the financial sector grows quickly but is often overlooked”notes the report, indicating that online and mobile banking services allow money to be moved in a few seconds.
Woody Malouf, head of financial crime at Revolut, explains that the London Fintech monitors emerging threats among its customers and in real time and its customers in real time and “In the wider ecosystem”. “Although such a sectoral event seems unlikely to us, it remains possible. It is therefore essential that financial institutions are prepared”specifies the expert by indicating that social networks have a role to play in slowing down these threats.
Reuters contacted financial institutions like Natwest and Barclays, who did not wish to comment or respond to requests. UK Finance, the professional organization in the sector, indicates that “Banks work hard to manage and mitigate AI risks, and regulatory authorities examine the potential challenges that technology poses for financial stability.”
