(Written by Bing AI)

Artificial intelligence (AI) is revolutionizing the way companies operate and interact with customers. However, with the benefits of AI come risks and challenges that need to be addressed to ensure safety and security.

One of the most significant risks associated with AI in banking is cybersecurity. AI models are susceptible to unique threats, such as stealing (a model’s illicit replication) and poisoning (in which anomalies are introduced to model data). To protect their finances from AI scams, risks, and fraud, customers can take the following steps:

1. Implement strong security measures: Use unique passwords for all accounts, enable two-factor authentication, and keep all software and security protocols up to date.

2. Be cautious about sharing personal information: Avoid sharing sensitive information such as bank account details, social security numbers, or passwords unless necessary.

3. Verify the authenticity of information and communications: Be skeptical of unsolicited emails, phone calls, or messages asking for personal or financial information. Verify the legitimacy of the source before sharing any details.

4. Monitor financial accounts regularly: Keep a close eye on bank statements, credit card bills, and other financial transactions for any suspicious activity. Report any unauthorized transactions to your bank or financial institution immediately.

5. Educate yourself about common scams: Stay informed about the latest AI-related scams and fraud techniques. Be aware of phishing attempts, fraudulent investment schemes, and other common scams.

On the other hand, AI can be used by individuals to improve their finances in various ways:

1. Personalized financial advice: AI-powered financial tools can analyze your spending habits, income, and financial goals to provide personalized recommendations for saving money, budgeting, and investing.

2. Automated budgeting: AI can help you track your expenses, categorize transactions, and create a personalized budget based on your financial goals.

3. Smart savings: AI-powered apps can analyze your spending patterns and automatically save small amounts of money from your daily transactions into a savings account.

4. Investment insights: AI algorithms can analyze market trends, historical data, and other factors to provide investment insights and recommendations.

5. Fraud detection: Financial institutions use AI algorithms to detect fraudulent activities and prevent unauthorized transactions in real-time.

It’s important to note that while AI can be a valuable tool for improving personal finances, it’s essential to exercise caution and ensure the security of your personal information. In conclusion, AI has brought significant benefits, but it also comes with risks that need to be addressed.

References:

ACFE Insights: https://www.acfeinsights.com/acfe-insights/2023/1/6/ai-and-fraud

Forbes: https://www.forbes.com/sites/jeffkauflin/2023/09/18/how-ai-is-supercharging-financial-fraudand-making-it-harder-to-spot

GOBankingRates: https://www.gobankingrates.com/saving-money/savings-advice/ai-scam/

Google Cloud: https://cloud.google.com/discover/finance-ai

Springboard: https://www.springboard.com/blog/data-science/ai-in-finance/