US Banks Restrict AI Agents Over Unauthorized Account Access Risks

Major US banks are taking steps to restrict third-party artificial intelligence (AI) agents from accessing customer accounts due to concerns over unauthorized transactions and actions beyond users’ instructions. The move reflects the growing use of AI agents, which can carry out tasks on behalf of users, creating a security challenge for financial institutions.

The problem has prompted several major banks to restrict third-party AI agents from accessing their platforms while they work to strengthen their security measures and revise their terms of service to address emerging risks. Banks including Morgan Stanley, Bank of America, JPMorgan Chase, Wells Fargo, and Citi are working to contain the risks associated with third-party AI agents.

In many cases, the agents access customers’ accounts using login credentials provided by the account holders themselves. Although customers may authorize such access, the practice violates the guidelines of most banks, which require people to log in to their own accounts. This has raised concerns about potential unauthorized transactions and actions that could affect customers’ finances.

Banks have also tracked instances where AI agents, programmed to fulfill requests or complete tasks on behalf of users, contact customer service call centers or appear to act independently of user instructions. The concern extends beyond access to financial information as banking executives fear that AI agents with permission to make purchases or move money could take actions with direct financial consequences for customers.

Morgan Stanley has started blocking third-party agents from accessing its platforms according to sources familiar with the decision. JPMorgan Chase, Bank of America, and Citi are also restricting such agents. A Chase spokesperson advised customers against sharing their usernames and passwords with anyone.

A Morgan Stanley spokesperson stated that the bank had not observed instances of ‘rogue AI agents’ accessing their platforms. However, this does not necessarily mean that there is no risk as banks struggle to distinguish between different agents and establish whether an agent has been authorized by a customer or gained access without permission and gone rogue.

One of the biggest difficulties for banks is determining whether activity on a customer account is being directed by the account holder or carried out independently by an AI agent. According to Axios, some banks are struggling to distinguish between different agents and establish whether an agent has been authorized by a customer or has gained access without permission and gone rogue.

Banks recognize that customers will increasingly want to use AI agents to manage financial tasks, but they also understand the need to find a middle ground that allows customers to benefit from AI agents while preventing automated systems from compromising customer accounts. Several institutions have therefore authorized read-only access for AI agents, enabling them to view customers’ financial information without being able to initiate transactions or take action on their accounts.

Banks already permit similar access for third-party applications such as Quicken, which customers use for budgeting and other financial activities. Industry and banking executives told Axios that financial institutions understand the need to find a middle ground that allows customers to benefit from AI agents without exposing their accounts to unacceptable risks.

Financial institutions are investing in measures to prevent AI-related security incidents but they also prepare for situations where their safeguards fail. According to sources cited by Axios, some banks plan for the immediate aftermath of a potential incident, including ways to quickly secure accounts or restore customer access if an AI agent causes a disruption.