You may have noticed that over the last year or so, it’s been impossible to tune out the chatter around artificial intelligence. AI will do our work for us, drive our cars, and make our movies–all we have to do is sit back and watch it happen! Well, not quite.
It’s true that AI is advancing at an incredible pace, and the risks and rewards are real. But in the meantime, let’s stay grounded by looking at how AI is really affecting you as you bank with Coastal Community Credit Union. While your day-to-day experience remains essentially the same, things are changing behind the scenes in the banking world.
Mind the gap in AI awareness
Canadians’ awareness of AI is growing every day, although fewer are using it. A survey by the Canadian Internet Registration Authority (CIRA) found that about one-in-six Canadians (16 per cent) say they have used a generative AI tool or platform in the past year. Only half (51 per cent) of Canadians say they are confident in their ability to detect fraud/scams online, down from 67 per cent in 2023. So AI is clearly making its mark, and bringing a lot of mistrust and confusion with it.
Let’s debunk some cybersecurity myths when it comes to AI
Myth: Only large transactions are at risk of being targeted by fraud.
In fact, cybercriminals often prefer smaller transactions because it’s less noticeable. Fraud can go undetected for a long time, or even indefinitely.
Myth: Mobile banking apps are at particularly high risk.
Mobile banking apps are built to the highest security standard with features like biometric authentication–using your fingerprint for example–which can make them even more secure than other online banking platforms. Of course, no system is immune from cybersecurity threats, so we all remain vigilant, both as banking professionals and as consumers.
Myth: AI operates autonomously.
We’re not there yet. AI still needs humans behind the scenes to establish goals, collect insights, and make decisions.
Myth: AI doesn’t make mistakes.
AI is only as good as the information humans give it, so yes, it makes plenty of mistakes.
The good, the bad, and the ugly
While the AI revolution is helping us in so many ways, it’s also providing new tactics for fraudsters.
Voice mimicking and deepfakes
One area where AI has been particularly adept is in voice mimicking and deepfake creation. These technologies can be used to impersonate individuals like family members or representatives from financial institutions using samples of their voices. Financial scams based on identity theft are nothing new, but earlier this year the CBC reported that the use of generative AI puts “a new twist on a pretty old concept,” according to lawyer Molly Reynolds, a partner at Torys LLP in Toronto. Victims struggle to find recourse as laws have yet to catch up.
Manufactured Identities
AI is also being used to create entirely new identities out of thin air, complete with the background information and digital footprints one would expect from a real person. These identities can be used to open bank accounts or apply for loans. Experts estimate there may be around 200,000 fake drivers’ licences circulating in Canada at any given moment.
The cost of these manufactured identities comes in a few main forms.
Financial losses:
When banks lose money due to fraud, those losses can eventually trickle down to customers in fees and interest rates.
Compromised identification systems:
Fake IDs can be used to obtain other forms of identification, open bank accounts, and get approved for loans.
Strain on law enforcement:
Law enforcement agencies need significant resources to investigate and combat these crimes, placing a strain on the system.
Consumer losses:
Canadians’ knowledge and understanding of cybersecurity risks is often lagging. They may not understand what legal protections they have.
Staying cybersafe in the AI era
In a classic game of cat and mouse, the tools to protect ourselves from cybersecurity risks in banking are evolving right alongside the tools used to commit cybercrimes.
Here are a few simple things you can do to help stay ahead.
Enable app alerts: Set up notifications for all transactions on your accounts, big and small.
Use multi-factor authentication: 2-step verification adds an extra layer of security on top of your password.
Keep your devices and apps updated: Updates often come with security patches, so you’ll always have the latest protection.
Explore personal cyber insurance: Check to see if it makes for your situation to proactively lower your risk with comprehensive cyber insurance.
Be extra careful around unsolicited calls or messages: These messages could appear to come from financial institutions, delivery companies, or other common consumer services.
Always verify the source: Even if you feel you know the person, always verify before sharing any personal or banking information.
Check it out for yourself
While there is indeed cause for concern, the most fearsome thing is often the unknown. Anyone can experiment with AI themselves to get a better idea of how it works and what’s possible. As you explore, make sure you don’t share any confidential information–everything you feed an AI chatbot fair game. That said, here are some things you can try with ChatGPT or other AI tool.
- Use AI-powered financial planning tools to get ideas around budgeting and investment strategies. Talk to an expert before you act on anything, of course.
- Try AI travel planners to help organize your next vacation. Use it to correct your spelling and grammar.
- Get it to help you write an email or a speech.
- Generate poems, songs, or children’s stories.
As we learn more about how it works, and its pros and cons, AI development is a fascinating story to follow in the news. Plus, by playing around with it yourself, you might discover a new useful tool, or even have some fun along the way. We’re here to help. Looking for some guidance around cybersecurity or another aspect of financial planning?