Altman: AI Deepfakes Threaten Bank Security

OpenAI CEO Sam Altman has warned the financial sector of a looming crisis as advances in AI make traditional authentication methods like voiceprints and facial recognition increasingly vulnerable. Speaking at a Federal Reserve conference, Altman stated that AI can now convincingly clone voices and will soon do the same with video, calling the continued use of voice authentication 'crazy.' He pointed to a real-world Hong Kong case where scammers used deepfake video calls to steal $25 million, showing that such threats are already occurring. Altman emphasized that only passwords remain largely effective against AI-driven fraud. Federal Reserve Vice Chair for Supervision Michelle Bowman acknowledged the threat and expressed willingness to partner on new security solutions. The warning comes as financial institutions and regulators work to strengthen fraud prevention in response to rapidly advancing generative AI.