Major US banks are reportedly blocking third-party AI agents from operating inside customer accounts and making transactions. The issue started when Axios reported on Thursday that some AI agents attempted to take actions that appeared to be independent of user instructions, potentially exposing customers and financial institutions to significant risks. A Reuters report claims that banks have been blocking third-party AI agents following that. Not only that but it also adds that the banking industry has become increasingly concerned that AI agents could harm the banking system and the institutions trusted to hold people’s wealth. Here’s everything we currently know about US banks blocking unauthorised AI agents from customer accounts.
According to the Axios report, some AI agents attempted to take actions that appeared to be independent of user instructions. Banks are concerned that advanced AI agents could create risks for financial institutions and the customers who trust them with their money.
Citing a person in the banking industry, the report added that in some cases, bank customers have shared their login ID and password with agents, with banks typically flagging and blocking those transactions. Still, such transactions cannot be deemed unauthorised if credentials were shared by the customer.
Top banking executives also discussed the risks of AI agents acting on customers’ behalf earlier this month, with some warning that the technology is adding significant risks for both customers and banks.
According to a Reuters report, Morgan Stanley has blocked third-party agents from accessing its platforms. The person also said the bank has not seen any instances of unauthorised or rogue AI agents.
JPMorgan Chase is also working on ways to manage the risks posed by AI agents. CEO Jamie Dimon said earlier this month that the largest US lender was developing tools to navigate the risk of agents carrying out tasks on their own. He also said, ‘We’re not going to allow just any outside agent to come in inside the company because that’s just too risky for clients and for JPMorgan.’
Charles Schwab has also been blocking agents it considers unauthorised, CEO Richard Wurster said earlier this month. He said he receives a daily report tracking how many times the brokerage has had to block one of the different agents.
Wurster said the number of blocked attempts is low because people aren’t using agents in that way in their financial lives. He added, ‘We are blocking it because we want to have control over authentication and the experience.’