OpenAI CEO Sam Altman has sounded the alarm over the growing threat artificial intelligence poses to financial institutions, warning that the technology could usher in a widespread “fraud crisis”.
According to CNN, speaking at the Federal Reserve this week, Altman expressed concern that some banks still rely on outdated security protocols, such as voice print authentication, despite AI’s ability to easily defeat them.
“A thing that terrifies me is apparently there are still some financial institutions that will accept a voice print as authentication for you to move a lot of money or do something else — you say a challenge phrase, and they just do it,” Altman said. “That is a crazy thing to still be doing… AI has fully defeated most of the ways that people authenticate currently, other than passwords.”
Altman’s comments were part of a wider discussion about the implications of AI for the economy and society. His remarks were delivered to an audience including representatives from leading US financial institutions and come at a time when concerns about AI-fuelled identity fraud are rising.
The discussion coincided with the upcoming release of the White House’s “AI Action Plan”, a strategic policy document intended to guide AI regulation and bolster the United States’ global position in the sector. OpenAI contributed to the development of the plan and has recently intensified its efforts to influence AI policy through a stronger presence in Washington, DC.
OpenAI announced on Tuesday that it will open its first office in Washington, DC, early next year. The space will serve as a hub for a 30-person team led by Chan Park, head of global affairs for the US and Canada, and Joe Larson, who joins from defence technology firm Anduril as vice president of government. The new office will host lawmakers, demonstrate new technologies, and deliver AI training sessions to public sector professionals. It will also support research on AI’s economic effects and initiatives to broaden public access to the technology.
Despite raising concerns about the risks of AI, OpenAI continues to advocate against overregulation. The company argues that excessive legal constraints could undermine American competitiveness in the global AI race. Earlier this month, the US Senate removed a controversial clause from the Trump administration’s legislative agenda, which would have blocked states from introducing their own AI-related laws for a decade.
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