OpenAI CEO Sam Altman has issued a dire warning about the rising threat of AI-driven fraud, calling out financial institutions that still rely on outdated methods like voice-based authentication.
Speaking at the U.S. Federal Reserve, Altman said he is "terrified" by the looming fraud crisis as generative AI—particularly deepfake voice and video—makes impersonation virtually undetectable.
Banks are in the crosshairs, Sam Altman Sounds Alarm on AI Fraud Epidemic.
Altman highlighted how criminals are already using AI to clone voices and create hyper-realistic videos, making traditional identity verification methods obsolete.
He was especially critical of banks that still authenticate high-value transactions via voiceprints, calling it “a crazy thing to still be doing.”
With real-world cases piling up—from CEOs deepfaked into wiring funds to family members impersonated in scams—global financial losses from AI fraud are expected to exceed $40 billion by 2027.
Trust, once grounded in what we see or hear, is rapidly eroding in this AI-powered world.
To respond, Altman urges banks to phase out voice authentication, adopt multi-factor and behavioural biometric systems, deploy real-time deepfake detection, and invest in staff and customer education.
Cross-industry collaboration and innovations like self-sovereign identity systems are also critical.
As Altman warns, we’re entering a post-truth digital era. It's time to rebuild trust from the ground up.
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