AI has been hailed as a game-changer for the banking industry, with many institutions embracing its potential to streamline operations and enhance customer experiences. However, despite its promise, AI also presents significant security risks that must be carefully managed if banks are to maintain their customers' trust.

According to Accenture's Cyber Threat Intelligence Research, deepfakes targeting customers and employees have become the most frequently observed threat by banks. These sophisticated fake videos or audio recordings can be used to trick users into divulging sensitive information or performing malicious actions. In some cases, hackers are even using large language models to create malware that can be used to hack customers' passwords.

The combination of AI-powered deepfakes and real-time payments fraud has led to an explosion of global consumer fraud, hindering consumers' trust levels and presenting a significant threat to banks. For instance, JPMorganChase CEO Jamie Dimon reported that fraud cost the bank's consumer division $500 million last year alone.

Banks' security teams are struggling to keep pace with the growing number of AI-powered cyber threats. In fact, four in five (80%) of banking security executives believe that gen AI empowers attackers faster than banks can respond, according to Accenture's research conducted in October. Nearly three-quarters (74%) of these executives struggle to maintain digital trust in the face of rising fraud risks.

Furthermore, most banks tend to have a compliance mindset around cybersecurity, which compounds the issue. They see it as an "essential burden" that drives up costs and slows progress. However, evidence suggests that robust cybersecurity actually enhances efficiency and helps build customer trust. It's time for banks to be proactive with customers and start playing offense instead of being stuck on defense.

To help build customer trust, banks can consider the following four key areas:

1. Consumer education: By educating customers about the risks associated with AI-powered cyber threats, banks can empower them to take steps to protect themselves. This could include providing regular security updates and offering personalized advice on how to stay safe online.
2. Proactive monitoring: Banks should invest in advanced threat intelligence and real-time threat monitoring and detection systems to identify and respond to potential cyber threats before they materialize.
3. Secure code generation: By using secure code generation tools, banks can reduce the risk of vulnerabilities being introduced into their systems. This could include implementing secure coding practices and regularly reviewing and updating existing codebases.
4. Customer-centric security: Banks should prioritize customer-centric security by integrating AI-powered security solutions into their core operations. This could include using machine learning algorithms to detect and respond to potential threats in real-time.

Banks that take a thoughtful approach to adopting AI will be better positioned to manage the risks and gain customer trust. By making cybersecurity a cornerstone of their strategy, banks can drive both consumer trust and business growth. Building trust through cybersecurity isn't an option – it's essential.

As AI continues to evolve and become increasingly integrated into banking operations, it's crucial that institutions prioritize cybersecurity and data protection across their entire supply chain. By doing so, they can navigate the complex AI threat landscape and maintain customer trust in the face of growing security risks.