Our Cooperation Targets Increasing SEC Compliance Violations and the Rise of AI-Powered Threats and Deepfake Technologies




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Banking IT leaders who oversee communications infrastructure face mounting pressures. Banking communications see a combination of greater SEC oversight and the surge in AI related threats, specifically the growth of deepfake technologies.

Challenges of a Banking IT Leader

SEC fines to banks and financial institutions continue to add up. Just in February 2024, the SEC fined 16 financial firms more than $81 million for using personal texts for business purposes. These fines are on top of over $1.7 billion in fines levied for compliance failures since 2021 [i].

At the same time, banks face higher risks from an increasing number of attack vectors [ii]. Digitization of bank processes and communications increases exposure to risks from AI-powered technologies such as deepfake audio and video scams.

Deepfake technologies are contributing to an ever-increasing number of bank losses. In February 2024, a Hong Kong bank lost over $25 million through fraudulent payments to five different accounts. These fraudulent transactions stemmed from a video conference call featuring several AI-generated participants [iii].

The Critical Role of User Experience

A critical complexity facing banking IT leaders is that communications methods and media are subject to user preference and practices. Some banking clients prefer to text their bank representatives. Some prefer to call the contact center. Some prefer to start on a web app from their client portal. And then there are internal bank employees who bring the same range of communications preferences and options.

As a result, IT leaders face the daunting challenge of bringing compliance controls and security protections to a wide number of different devices, applications, and media types. Users have strong preferences, especially around mobile devices. They often go around formal guidelines and requirements to use their preferred devices or applications, leading to both compliance and security vulnerabilities.

To make meaningful progress, banking IT leaders need to address the technical, operational, and user experience elements of their communications solutions.


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