OpenAI CEO Sam Altman Warns of Imminent AI-Powered Voice Fraud Crisis in Banking

OpenAI's Sam Altman warns of AI voice fraud crisis in banking

WASHINGTON (AP) -- OpenAI CEO Sam Altman warned the financial industry of a "significant impending fraud crisis" because of the ability of artificial intelligence tools to impersonate a person's voice to bypass security checks and move money. Altman spoke at a Federal Reserve conference Tuesday in Washington. "A thing that terrifies me is apparently there are still some financial institutions that will accept the voiceprint as authentication," Altman said. "That is a crazy thing to still be doing. AI has fully defeated that." Voiceprinting as an identification for wealthy bank clients grew popular more than a decade ago, with customers typically asked to utter a challenge phrase into the phone to access their accounts. But now AI voice clones, and eventually video clones, can impersonate people in a way that Altman said is increasingly "indistinguishable from reality" and will require new methods for verification. "That might be something we can think about partnering on," said Fed Vice Chair for Supervision Michelle Bowman, the central bank's top financial regulator, who was hosting the discussion with Altman.

Sam Altman Is Right: AI-Powered Crypto Scams Are Exploding

Finally, a profession that has managed to successfully integrate artificial intelligence into its workflow: Crypto scammers. According to a report from blockchain intelligence firm TRM Labs, crypto scams are up 456% over the last year, due in large part to the ability to produce deepfake audio and video clips with artificial intelligence toolsâ€"making good on OpenAI CEO Sam Altman's recent prediction/warning that a fraud crisis is just around the corner. There's no doubt the fraud situation is getting bad. The FBI said it received about 150,000 fraud complaints related to cryptocurrency scams in 2024, with people reporting having lost over $3.9 billion in total. Globally, that figure skyrockets to $10.7 billion according to TRM Labs data. You can go ahead and round those figures way up, too. Speaking to the New York Post, Ari Redbord, the Global Head of Policy at TRM Labs, said that only about 15% of victims actually report these crimes. These scams are a leveling up of the so-called pig butchering attacks that have become popular in recent years because they don't just take advantage of people via text. AI now allows scammers to create realistic-looking and sounding audio and video that can trick a person into thinking they are talking to someone realâ€"potentially even a loved one or familiar face. TRM Labs warned that as AI models gain agentic abilities that allow them to interface with things like email and other apps, the process of scamming is going to get automated and a lot more prevalent. Last week, Sam Altman started ringing the alarm bells on the same problemâ€"though he's not just worried about scammers taking advantage, but rather the entirety of our existing security apparatus getting defeated. While speaking at a banking regulatory conference, Altman said that AI has already "fully defeated" most authentication services that humans rely on to verify their identity and access their sensitive accounts. "Society has to deal with this problem more generally," Altman said, presumably while dressed in a hot dog suit and shouting, "We're all trying to find the guy who did this." To that end, Altman's own company announced earlier this month that it was releasing a ChatGPT Agent that could effectively interact with a computer the same way a human can, switching between apps and completing multi-step tasks that require doing things like logging into different accounts and making decisions. Altman's warning of a scam apocalypse seems to have shades of the general warnings that AI execs have been offering about the potential risk of artificial general intelligence, ie, "This could be really bad, but we are absolutely not going to stop."

Analysis | OpenAI CEO Sam Altman is right and very wrong about AI-faked voices

It's getting scarily easy to create an artificial intelligence soundalike to fool your banks or loved ones. We need industry and government to fix this. Sam Altman, CEO of ChatGPT creator OpenAI, said this week that he's worried about artificial intelligence-generated audio empowering crooks to steal your money and commit other fraud. Altman is right to sound the alarm about AI-generated voices that can impersonate you, including in customer service calls to banks. Altman missed an opportunity, however, to stress AI companies' responsibility in combating new fraud that his industry helped create. Altman is massively influential in shaping the direction of AI, how we use it and what we believe about it. That gives extra heft to what he says, and doesn't say, about the dangers of AI. Let's talk about the risks of AI soundalikes fooling your bank and others -- and what's being done, or should be done, to limit those threats. You need corporations and governments to step in because you cannot protect yourself from cheap, easy-to-create AI voice impostors. How effectively companies and officials manage the clear AI risks like impostor fraud is a crucial test of whether technology can serve our best interests. <b>Fooling your bank or grandparent with AI voices</b> AI voice fakes aren't new, including one of Secretary of State Marco Rubio and another that conned a couple who believed their grandson was calling for bail money. Skip to end of carousel Shira Ovide (Patrick Dias for The Washington Post) Tech Friend writer Shira Ovide gives you advice and context to make technology work for you. Sign up for the free Tech Friend newsletter. Contact her securely on Signal at ShiraOvide.70 End of carousel But in the past year or so, a dramatic improvement in freely available online AI software made it possible to create realistic AI-generated audio that can talk like you for little effort and no money, said AI specialist Henry Ajder. A fraudster might just need a few seconds of your own recorded voice to make a soundalike impostor. And the AI technology may have few or zero guardrails to stop people from making AI voice fakes of strangers or celebrities. "You cannot stop yourself from being targeted, basically," Ajder said. This week, Altman zeroed in on the risk of voice impostors targeting your financial accounts. (The Washington Post has a content partnership with OpenAI.) In a room full of bankers at an industry event, he said that given the risks of AI voice fakes, banks were "crazy" to still use customers' voices to verify their identity. Altman said that AI fakery is making it pointless to try to prove your identity using your voice, selfie images or many other conventional ways. "I am very nervous that we have a significant impending fraud crisis because of this," he said. I couldn't confirm which financial institutions verify customers' identities by comparing the voice on the phone to recordings they have on file. Technology and finance experts told me that voice verification is relatively common at banks, but it's typically just one of many ways that a financial institution will confirm your identity. <b>What you can do -- and where companies must take responsibility</b> If you're not sure whether your financial institutions use voice verification, you can call customer service to ask and say that you don't want voice authentication used, suggested Suzanne Sando, a fraud and security analyst for financial industry adviser Javelin. The good news is that banks have a long history of tackling fraud and didn't need Altman to tell them to take seriously the risk of AI voice impostors, technology and finance specialists told me. Customer service call centers at some banks and other industries are using technology from start-ups including Pindrop, GetReal and Reality Defender that scores the likelihood of the caller being human or machine. Ajder said AI-detection technologies are imperfect, and most credible companies will be honest about the shortcomings. Ajder is also hopeful about a technology project working to embed detailed evidence into audio clips, videos and images tracing when and how they were made and that the material came from a real person. Other experts say there needs to be more collaboration among banks, AI companies and regulators to combat AI voice fakes. Ben Colman, CEO of Reality Defender, said that he's confident there will be sensible national policy soon tackling the risks of AI voice fakes. "It's not a question of if. It's a question of when," he said. Michael Reitblat, CEO of fraud prevention company Forter, said AI companies lavish money on computer centers, highly paid researchers and pitching AI's benefits. It could help if they put as much effort into anti-fraud AI, he said. And this is where Altman's talk with bankers could have gone differently. At that moment at least, Altman didn't say what AI companies should do to help fight voice fraud. (OpenAI has declined to release its own AI voice technology because of the impostor risks.) Altman also didn't advocate for potential legislation that would better protect us. He largely blamed banks and suggested high-level social changes. It's like the Exxon CEO saying the planet sure is getting hot and someone should probably fix it. OpenAI responded that because of the risk of AI-generated voices, the company has moved cautiously and implemented safeguards. "We're engaging with stakeholders like banks to ensure they understand where AI capabilities are going so both they and we can better understand risks, and partner on solutions," the company said in a statement. The day after Altman's talk, the White House released an AI "action plan." It didn't mention AI fraud.

Sam Altman gives stern warning on AI, fraud and passwords -- 'That is a crazy thing to still be doing'

Sam Altman, CEO of OpenAI, has quickly become one of the biggest names in AI. Like some of his competitors, Altman's position in AI hasn't stopped him speaking out on concerns in the industry. Most recently, that's around the AI fraud crisis. With AI and deepfakes, it is easier than ever for people to impersonate others and commit fraud using these advanced tools. "A thing that terrifies me is apparently there are still some financial institutions that will accept a voice print as authentication for you to move a lot of money or do something else -- you say a challenge phrase, and they just do it," Altman said at the Federal Reserve conference in Washington. "That is a crazy thing to still be doing... AI has fully defeated most of the ways that people authenticate currently, other than passwords." These comments from Altman come as AI shows its ability to replicate voices more efficiently than ever. While safeguards are often put in place by some of the bigger companies, it is still a simple process to replicate anyone's voice with a few short recordings. The technology is also growing rapidly in the video world. There are concerns that, in the near future, we'll be able to easily produce a video and audio combination that can fool anyone into believing they are having a full conversation with a real person. This speech comes as the White House ramps up to release its "AI action plan". This would be a policy document that outlines its approach to AI regulation. This is something other countries have looked to do as well, but few have produced very detailed approaches. OpenAI is gearing up to be ahead of the AI movement in terms of policy. The company has confirmed that it will soon open its first Washington, DC office with a small workforce. This would be used to host policymakers and provide AI training to those making decisions on the technology. The company also recently announced an agreement with the U.K. government to find ways to use AI in government decisions, as well as helping explain the benefits and concerns of AI. Altman isn't alone in concern from the higher-ups of AI. Anthropic's CEO Dario Amodei has recently warned about the effects of AI on job security, and the Future of Life institute has recently claimed that most AI companies are not planning enough for the future. However, where AI can be a risk, it can also be a benefit. While some AI tools look to create scams, others look to detect it. As the technology gets better, it becomes more useful on both sides of the spectrum.

OpenAI CEO Sam Altman warns of AI "fraud crisis" targeting consumer accounts

Why it matters: Altman said society is unprepared for how quickly the technology is evolving and called for an overhaul of how consumers get into personal accounts. What they're saying: "I am very nervous that we have an impending, significant fraud crisis," Altman told some of the nation's top Wall Street executives and economic policymakers Tuesday. * Altman, who spoke at a banking regulatory conference hosted by the Federal Reserve, said that AI has "fully defeated" most of the ways that people authenticate who they are. * "Society has to deal with this problem more generally," Altman said on a panel moderated by the Fed's new Wall street cop, Michelle Bowman, who was elevated to the post by Trump earlier this year. State of play: "A thing that terrifies me is apparently there are still some financial institutions that will accept the voice print as authentication for you to move a lot of money," Altman said. * "Other people actually have tried to sort of warn people, 'hey, just because we're not releasing the technology doesn't mean it doesn't exist,'" he said. * "Some bad actor is going to release it -- this is not a super difficult thing to do. This is coming very, very soon," Altman said, referring to efforts to fake authentication. The big picture: Altman is in Washington D.C. this week -- appearing at the Fed's mega-bank regulation conference headquarters and Capitol Hill -- to push the message that artificial intelligence will be a "democratic" good for America and its economy, Axios reported on Monday. * Altman's appearance comes one day before President Trump is scheduled to appear at an AI-focused summit. * The White House is also expected on Wednesday to release an "AI Action plan" that will outline a hand-off, pro-growth approach, Axios Pro scooped last week. What to watch: Some of the nation's financial institutions are wary about plunging headfirst into AI, with regulatory hurdles to get bespoke technology approved and the risk of a trillion-dollar error. The other side: Altman said he has been surprised by the amount of uptake from big banks.

Sam Altman Warns That AI Is About to Cause a Massive "Fraud Crisis" in Which Anyone Can Perfectly Imitate Anyone Else

OpenAI CEO Sam Altman is warning of an "impending fraud crisis" in which practically anybody will be able to imitate not only the voice but even the likeness of others, using the type of AI that his company is helping pioneer. During a chat with Federal Reserve vice chair Michelle Bowman in Washington, DC, Altman argued that the banking industry must modernize to avoid having its customers fall victim to widespread fraud. "I am very nervous about this," he told Bowman. "A thing that terrifies me is apparently there are still some financial institutions that will accept a voice print as authentication for you to move a lot of money or do something else. You say a challenge phrase and they just do it." "AI has fully defeated most of the ways that people authenticate currently, other than passwords," he went on. "Right now, it's a voice call; soon it's going be a video or FaceTime that's indistinguishable from reality." To his credit, it's not just the usual fearmongering from AI leaders warning of impending doom brought on by a so-called artificial general intelligence. We've already seen plenty of instances of scammers perfectly imitating the voices of their victims to demand ransoms for their loved ones, or even trick employees into cashing out company funds. Thanks to significant technological progress in the AI space, it has never been easier to imitate somebody's voice or even face with the help of an app. It's part of a larger, worrying trend. Last year, the FBI warned of an "increasing threat" of cyber criminals harnessing the power of AI to "conduct sophisticated phishing/social engineering attacks and voice/video cloning scams." Earlier this month, Trump officials revealed that an imposter had even used AI to impersonate Secretary of State Marco Rubio to contact "three foreign ministers, a US governor, and a US member of Congress" with the "goal of gaining access to information or accounts." In other words, it's only a matter of time until scammers employ the same tactics to get into somebody's bank account -- if it hasn't happened already, that is. Covering his derriere, Altman told Bowman that his firm had nothing to do with the "impending fraud crisis," claiming that OpenAI wasn't working on impersonation tools. However, as CNN points out, the billionaire does back a tool called The Orb, which is working on a controversial biometric authentication method. And its video generator Sora could conceivably be used for exactly the types he's talking about as well. Altman claimed that "other people in our industry have tried, to sort of warn people like, 'Hey, just because we're not releasing the technology doesn't mean it doesn't exist." "Some bad actor is going to release it," he added. "This is not a super difficult thing to do. This is coming very, very soon."

Sam Altman says financial industry faces a massive 'fraud crisis' as AI impersonates people's voices to trick security

OpenAI CEO Sam Altman warned the financial industry of a "significant impending fraud crisis" because of the ability of artificial intelligence tools to impersonate a person's voice to bypass security checks and move money. Altman spoke at a Federal Reserve conference Tuesday in Washington. "A thing that terrifies me is apparently there are still some financial institutions that will accept the voiceprint as authentication," Altman said. "That is a crazy thing to still be doing. AI has fully defeated that." Voiceprinting as an identification for wealthy bank clients grew popular more than a decade ago, with customers typically asked to utter a challenge phrase into the phone to access their accounts. But now AI voice clones, and eventually video clones, can impersonate people in a way that Altman said is increasingly "indistinguishable from reality" and will require new methods for verification. "That might be something we can think about partnering on," said Fed Vice Chair for Supervision Michelle Bowman, the central bank's top financial regulator, who was hosting the discussion with Altman.

AI's voice mimicking software is so powerful that a terrified Sam Altman just warned the Fed about a 'fraud crisis' around the corner

Altman addressed hundreds of regulators and banking executives while sitting down for an interview with Fed governor Michelle Bowman, the vice chair for supervision. Bowman, who has emerged as a contender to potentially succeed Fed chair Jerome Powell, prompted Altman to talk about the technology he helped pioneer and concerns about fraud. Altman immediately brought up how powerful AI models are now capable of perfectly reproducing anyone's voice based on just a few short audio samples and issued his warning: "A thing that terrifies me is apparently there are still some financial institutions that will accept the voiceprint as authentication for you to move a lot of money or do something else," Altman told the audience. "That is a crazy thing to still be doing ... AI has fully defeated that." To Altman's point, banks have, for more than a decade, relied on voice authentication: Clients repeat a custom phrase, their "voiceprint," to access accounts. But as generative AI has advanced, so have the tools available to would-be fraudsters. Altman described a near future where attackers will be able to call a bank, pass every test, and move money freely, all by simulating a customer's voice. "Just because we are not releasing the technology does not mean it does not exist," Altman said of the pandora's box that AI represents. "Some bad actor is going to release it -- this is not a super difficult thing to do." The OpenAI chief described the scenario that keeps him up at night: a large-scale, coordinated attack where AI-generated voices rapidly defeat outdated security measures across the world's biggest banks. The threat isn't limited to voice. Altman gave a glimpse into the next frontier: "video clones" -- AI capable of mimicking an individual's appearance and speech -- heightening the stakes for personal security and institutional trust. "Right now it is a voice call. Soon it is going to be a video FaceTime. It will be indistinguishable from reality," he said. Altman's warning didn't fall on deaf ears. Bowman agreed that collaboration between regulators and tech leaders going forward will be vital. "That might be something we can think about partnering on," she said, signaling the central bank's readiness to take action and eagerness to work with OpenAI. OpenAI, for its part, is planning to expand its physical presence in Washington, D.C., aiming to facilitate more direct collaboration with regulators and policymakers, including the Federal Reserve. The company's new D.C. office will host policy workshops and serve as a venue for hands-on collaboration and training related to AI deployments in government and regulated industries, a spokesperson for OpenAI told CNBC the day before Altman's panel with Bowman. The Fed frequently organizes similar roundtable discussions and panels with executives from tech, fintech, and financial institutions to explore the adoption and impact of AI, especially generative AI, in banking and broader economic sectors. The central bank also encourages partnerships between banks and fintechs, with the latter working to integrate advanced AI tools into regulated banking activity.

OpenAI CEO warns of impending banking fraud crisis due to AI

Sam Altman says he's "very nervous" about the use of artificial intelligence in the banking world. The OpenAI CEO spoke with with Federal Reserve Vice Chair Michelle Bowman at the Fed's Integrated Review of the Capital Framework for Large Banks Conference in Washington, D.C. on Tuesday. During their conversation, Altman talked about his fear of an "impending fraud crisis" in banking, given the huge threat that AI poses to current methods of authentication. During the discussion, Bowman said that the banking industry is "really interested" in fraudulent activity from individuals impersonating others. She went on to ask Altman if there are ways banks can mitigate this kind of fraud if AI is being used in this type of impersonation. "I am very nervous about this," Altman began. "A thing that terrifies me is apparently there are still some financial institutions that will accept a voice print as authentication for you to move a lot of money or do something else. You say a challenge phrase and they just do it." He said that is a "crazy thing" for banks to still be doing, noting that "AI has fully defeated that." "AI has fully defeated most of the ways that people authenticate currently, other than passwords," Altman said while highlighting some of the "fancy" methods banks use that no longer work with AI, like "take a selfie and wave or do your voice." He said banking's use of these authenticators is leading the industry to have "a significant impending fraud crisis." Altman said methods of impersonating the voice of an individual are "going to get so compelling." "We have tried, I think other people in our industry have tried, to sort of warn people like, 'Hey, just because we're not releasing the technology doesn't mean it doesn't exist,'" Altman said. "Some bad actor is going to release it. This is not a super difficult thing to do. This is coming very, very soon." Altman added that people are going to have to change the way they verify. "Right now it's a voice call, soon it's going to be a video FaceTime. It'll be indistinguishable from reality," he said. "This is a huge deal."

OpenAI's Sam Altman warns of AI voice fraud crisis in banking

WASHINGTON (AP) -- OpenAI CEO Sam Altman warned the financial industry of a "significant impending fraud crisis" because of the ability of artificial intelligence tools to impersonate a person's voice to bypass security checks and move money. Altman spoke at a Federal Reserve conference Tuesday in Washington. "A thing that terrifies me is apparently there are still some financial institutions that will accept the voiceprint as authentication," Altman said. "That is a crazy thing to still be doing. AI has fully defeated that." Voiceprinting as an identification for wealthy bank clients grew popular more than a decade ago, with customers typically asked to utter a challenge phrase into the phone to access their accounts. But now AI voice clones, and eventually video clones, can impersonate people in a way that Altman said is increasingly "indistinguishable from reality" and will require new methods for verification. "That might be something we can think about partnering on," said Fed Vice Chair for Supervision Michelle Bowman, the central bank's top financial regulator, who was hosting the discussion with Altman.

OpenAI's Sam Altman Warns of AI Voice Fraud Crisis in Banking

WASHINGTON (AP) -- OpenAI CEO Sam Altman warned the financial industry of a "significant impending fraud crisis" because of the ability of artificial intelligence tools to impersonate a person's voice to bypass security checks and move money. Altman spoke at a Federal Reserve conference Tuesday in Washington. "A thing that terrifies me is apparently there are still some financial institutions that will accept the voiceprint as authentication," Altman said. "That is a crazy thing to still be doing. AI has fully defeated that." Voiceprinting as an identification for wealthy bank clients grew popular more than a decade ago, with customers typically asked to utter a challenge phrase into the phone to access their accounts. But now AI voice clones, and eventually video clones, can impersonate people in a way that Altman said is increasingly "indistinguishable from reality" and will require new methods for verification. "That might be something we can think about partnering on," said Fed Vice Chair for Supervision Michelle Bowman, the central bank's top financial regulator, who was hosting the discussion with Altman.

Here's What 'Terrifies' OpenAI's CEO About Financial Institutions Today: 'This Is a Huge Deal'

He also said a possible financial attack on the U.S. keeps him up at night. Sam Altman, the CEO of $300 billion AI startup OpenAI, is asking finance industry leaders to stay ahead of AI trends -- and to avoid voice authentication at all costs. At the Federal Reserve's Regulatory Capital Framework Conference on Tuesday in Washington, D.C., Altman told a crowd of financial regulators and industry experts that "a thing that terrifies" him is banks that still accept voices to authenticate identity. AI voice cloning hoaxes can copy a person's voice in three seconds and use the cloned voice to empty bank accounts. "A thing that terrifies me is apparently there are still some financial institutions that will accept a voice print as authentication for you to move a lot of money or do something else," Altman said at the event, per Business Insider. Related: I Called Klarna's New AI Hotline to Talk to the Company's 'CEO' -- Here's What Happened Altman said voice authentication was "a crazy thing to still be doing" and that AI has "fully defeated" many ways financial institutions currently confirm identity. He also warned that AI has the potential to cause a "significant impending fraud crisis," and predicted that institutions are going to have to transform the way they verify identity in response. "People are going to have to change the way they interact," Altman said. "They're going to have to change the way they verify. This is a huge deal." During a Q&A session at the Federal Reserve event, Altman was also asked about what keeps him up at night. He said a widespread financial crisis where an adversary uses AI to launch an attack on the U.S. The bad actor could "break into financial systems and take everyone's money," and there would be little we could do about it, Altman said. It would be difficult to uphold protective measures against an adversary with smarter AI, Altman explained. Related: Nearly Half of Americans Think They Could Be Duped By AI. Here's What They're Worried About. Altman's fears that AI could be misused in the wrong hands are echoed by financial leaders. According to a survey released in March by consulting firm Accenture, 80% of bank cybersecurity leaders state that AI allows bad actors to launch attacks faster than banks can respond. In other words, the leaders can't keep up with the rapid pace of AI scams targeting personal bank accounts. Consumers reported losing more than $12.5 billion to scams in 2024, a 25% increase from the previous year, according to the Federal Trade Commission. More people fell for scams and lost money to them last year, with $2.95 billion lost to imposter scams. Still, some top executives at OpenAI are convinced it has the power to do a lot of good, from eradicating diseases to helping support equal pay initiatives.

OpenAI CEO Sam Altman is 'terrified' of this looming AI-fueled crisis we are 'sleepwalking' into, and you should be too

In a candid and cautionary moment, OpenAI CEO Sam Altman -- often hailed as one of the most influential figures in artificial intelligence -- has spoken openly about a fast-approaching crisis that even he admits terrifies him. In an interview reported by CNN, Altman didn't mince words: the world may be "sleepwalking" into a major fraud epidemic fueled by AI's rapid evolution. His concern? That artificial intelligence is outpacing our current systems of trust and authentication -- and bad actors are already taking advantage. "Apparently there are some financial institutions that will accept a voice print as authentication for you to move a lot of money... AI has fully defeated most of the ways that people authenticate currently, other than passwords," Altman warned. From deepfaked relationships to fake celebrity calls, AI-driven scams are already unfolding in the real world. In China, scammers recently used AI to simulate a romantic relationship to defraud someone. In another case, over $850,000 was stolen using an AI-generated fake of Brad Pitt. These aren't future hypotheticals -- they're present-day realities. Altman's warning comes just as OpenAI released its latest innovation, the ChatGPT Agent -- a powerful digital assistant capable of autonomous, multi-step tasks using virtual tools. It can plan vacations, shop online, and even craft reports from user data. But Altman urges caution. "Treat it as experimental," he wrote on X (formerly Twitter), adding that even he wouldn't use it for "high-stakes tasks or personal information" just yet. The real concern isn't just today's voice cloning -- it's what's on the horizon. Altman cautions that we are mere steps away from video calls that are indistinguishable from reality, a development that could render traditional forms of identity verification useless. This warning comes at a time when major tech companies, including Microsoft, are already pushing to move beyond passwords and adopt biometric authentication. But Altman insists that current biometric methods are fragile against the sheer sophistication of generative AI tools. The deeper issue, as Altman sees it, is one of co-evolution. Society, technology, and our risk mitigation strategies must evolve together -- or risk falling behind. In an era where AI is praised for productivity, creativity, and transformation, Altman's stark reminder serves as a necessary counterbalance: the same tools that can enhance life can also be manipulated to exploit it. And coming from the man who helped birth ChatGPT, his words carry weight.

Sam Altman fears AI-enabled fraud crisis

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community. The uptake of AI deepfake voice and video scams has been on the rise in over the last year, as crooks embrace new technology to scam people out of money. The US Treasury Department's Financial Crimes Enforcement Network recently issued an alert to help banks to spot the scams. Speaking in an interview at the Federal Reserve, Altman said: "I am very nervous that we have an impending, significant, impending fraud crisis. Right now, it's a voice call; soon it's going be a video or FaceTime that's indistinguishable from reality." Already, the technology has caught up with how some banks authenticate users, he warned: "A thing that terrifies me is apparently there are still some financial institutions that will accept a voice print as authentication for you to move a lot of money or do something else -- you say a challenge phrase, and they just do it. "That is a crazy thing to still be doing...AI has fully defeated most of the ways that people authenticate currently, other than passwords."

OpenAI CEO Sam Altman Warns Of AI Voice Fraud Crisis In Banking

WASHINGTON (AP) -- OpenAI CEO Sam Altman warned the financial industry of a "significant impending fraud crisis" because of the ability of artificial intelligence tools to impersonate a person's voice to bypass security checks and move money. Altman spoke at a Federal Reserve conference Tuesday in Washington. "A thing that terrifies me is apparently there are still some financial institutions that will accept the voiceprint as authentication," Altman said. "That is a crazy thing to still be doing. AI has fully defeated that." Voiceprinting as an identification for wealthy bank clients grew popular more than a decade ago, with customers typically asked to utter a challenge phrase into the phone to access their accounts. But now AI voice clones, and eventually video clones, can impersonate people in a way that Altman said is increasingly "indistinguishable from reality" and will require new methods for verification. "That might be something we can think about partnering on," said Fed Vice Chair for Supervision Michelle Bowman, the central bank's top financial regulator, who was hosting the discussion with Altman.

AI and the Future of Finance: Sam Altman at the Federal Reserve: By Vipin Kumar Sharma

Sam Altman joined the Federal Reserve this week to talk about AI's growing role in finance, and every FinTech leader should be paying attention. On July 22, 2025, OpenAI CEO Sam Altman joined the Federal Reserve Vice Chair Michelle Bowman in Washington, D.C. to explore how artificial intelligence is reshaping banking, security, and the future of financial services. Yes, the CEO of OpenAI walked into one of the most traditional institutions in global finance and painted a future that's anything but conventional. Here are some key takeaways from their discussion: AI voice cloning is becoming highly realistic. Altman pointed out that AI can now mimic voices so well that traditional tools, such as voice-based authentication, may no longer be reliable, especially for high-value transactions. It's time to rethink security. Banks and regulators must develop new, more advanced methods to verify identities and prevent fraud as AI becomes increasingly sophisticated. AI can drive real improvements. From faster credit checks to better customer service, Altman believes AI can help financial institutions become more efficient and cost-effective if implemented thoughtfully. AI should be accessible, not exclusive. He emphasized the importance of "democratizing AI," ensuring that the benefits of this technology are widely shared and not concentrated among a few large players. Job roles may shift, but opportunities can also change. While some roles will change due to automation, Altman stressed the need for retraining and smart policy to help workers transition and grow with new tools. While no formal partnership was announced, both OpenAI and the Fed expressed interest in continued dialogue and collaboration. AI in finance isn't just a future concept; it's already part of the conversation at the highest levels. Now is the time for leaders in finance, technology, and policy to collaborate and shape the future.

Sam Altman Warns Of 'Impending Fraud Crisis' As AI Outsmarts Current Authentication Methods: 'A Thing That Terrifies Me Is...'

Enter your email to get Benzinga's ultimate morning update: The PreMarket Activity Newsletter Sam Altman, the CEO of OpenAI, expressed concerns about the potential threats artificial intelligence (AI) poses to financial security, urging them to stay ahead of the technology. What Happened: During a recent event hosted by the Federal Reserve in Washington, D.C., Altman cautioned financial leaders about the dangers of AI outsmarting current authentication methods. He specifically highlighted the use of voice prints for high-value transactions. "A thing that terrifies me is apparently there are still some financial institutions that will accept a voice print as authentication for you to move a lot of money or do something else," Altman told Fed's Michelle Bowman. "That is a crazy thing to still be doing. AI has fully defeated most of the ways that people authenticate currently -- other than passwords," he added. He also warned of a "significant impending fraud crisis" due to AI, and stressed the need for a change in the way customer interactions and verifications are handled. Sam Altman warns that as AI-generated content becomes indistinguishable from reality, like hyper-realistic video calls -- people will need to change how they interact and verify identities. He emphasizes the urgency of teaching society how to authenticate communications and understand the risks of fraud in this new digital landscape. Altman's concerns extend beyond customer authentication. During the Q&A session, he also highlighted the potential threat of a large-scale financial attack, possibly orchestrated by a foreign adversary using advanced AI to breach U.S. financial systems. Trending Investment OpportunitiesAdvertisementArrivedBuy shares of homes and vacation rentals for as little as $100. Get StartedWiserAdvisorGet matched with a trusted, local financial advisor for free.Get StartedPoint.comTap into your home's equity to consolidate debt or fund a renovation.Get StartedRobinhoodMove your 401k to Robinhood and get a 3% match on deposits.Get Started SEE ALSO: Shiba Inu Surges 37% In 1 Month: How High Can The SHIB Price Go? - Benzinga Why It Matters: The warning from Altman comes at a time when AI is increasingly being integrated into the financial sector, with companies like Wysh using AI to rebuild trust and emotional connections with customers. However, Altman's warning suggests that this reliance on AI could also pose significant risks. Altman's concerns echo those of other AI experts. AI pioneer Geoffrey Hinton warned of the potential dangers of super-intelligent AI, urging caution in the development and deployment of AI technologies. Meanwhile, AI safety researchers from OpenAI and Anthropic are openly criticizing Elon Musk's startup xAI, calling its safety practices "completely irresponsible" -- a rebuke that could fuel regulatory scrutiny and impact enterprise adoption of the billion-dollar venture. As AI continues to advance, Altman's warning serves as a reminder of the need for careful consideration and regulation in its use, particularly in critical sectors like finance. READ MORE: Here's How Sam Altman Quietly Replaced Elon Musk as Donald Trump's Go-To AI Advisor Image via Shutterstock Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors. Market News and Data brought to you by Benzinga APIs

Sam Altman Says AI Has 'Defeated' Bank Voice ID Protections | PYMNTS.com

That's because artificial intelligence (AI) has advanced to the point that it can impersonate someone's voice to get around security protocols and move funds, Sam Altman said at a Tuesday (July 22) Federal Reserve conference in Washington. "A thing that terrifies me is apparently there are still some financial institutions that will accept the voiceprint as authentication," said Altman, whose comments were reported by the Associated Press (AP). "That is a crazy thing to still be doing. AI has fully defeated that." As the AP notes, voiceprinting as a method of identification for wealthier banking clients became popular more than a decade ago. These systems would normally ask customers to say a challenge phrase into their phones to get to their accounts. "I am very nervous that we have an impending, significant, impending fraud crisis," Altman said. "Right now, it's a voice call; soon it's going to be a video or FaceTime that's indistinguishable from reality," he added, requiring new security measures. "That might be something we can think about partnering on," said Fed Vice Chair for Supervision Michelle Bowman, the central bank's chief financial regulator, who hosted the discussion with Altman. The scenario Altman described happened in real life. In 2024, a finance worker in Hong Kong transferred $25 million to scammers following a video call with what appeared to be the company's chief financial officer and other executives. In reality every participant on the call was a deepfake. That defrauded business was just one among many, per research from the PYMNTS Intelligence April 2025 Invoice-to-Pay Automation Tracker® Series, "Rising Risk: Confronting Modern AP Fraud Threats." That report found that 90% of companies in the U.S. had been targeted by cyberfraud in 2024. Business email compromise attacks impacted 63% of companies, jumping 103% from the previous year. "Still, the deepfake incident underscores a chilling reality," PYMNTS wrote earlier this year. "Generative AI has transformed financial fraud, making it more sophisticated and harder to detect. While businesses harness its capabilities for efficiency, cybercriminals exploit it to craft convincing fraudulent schemes." At the same time, the report added, businesses are using AI to detect fraud, using machine learning to spot anomalies in transaction patterns and flag suspicious activities in real time. And by weaving AI into accounts payable processes, companies can automate invoice verification, cross-referencing details with existing records to spot inconsistencies.

Sam Altman Sounds Alarm Over AI Fraud Crisis, Deepfakes and Job Disruption

Sam Altman Warns of AI-Powered Fraud Crisis, Identity Risks, and a Jobless Future at Federal Reserve Talk OpenAI Chief Sam Altman has raised concerns about an impending global fraud crisis driven by artificial intelligence. During a speech at a Federal Reserve event on Tuesday, Altman criticized the continued reliance on outdated security measures, particularly within the banking sector. "It's alarming that some financial institutions still use voice prints to authenticate large money transfers," he said. "AI has effectively compromised most authentication systems, with the exception of passwords." His warning comes as the White House prepares its '' to oversee the rapidly changing tech sector. OpenAI has been involved in the advisory process and is now openly scaling up its government outreach.

OpenAI's Sam Altman warns of AI voice fraud crisis in banking

WASHINGTON -- OpenAI CEO Sam Altman warned the financial industry of a "significant impending fraud crisis" because of the ability of artificial intelligence tools to impersonate a person's voice to bypass security checks and move money. Altman spoke at a Federal Reserve conference Tuesday in Washington. "A thing that terrifies me is apparently there are still some financial institutions that will accept the voiceprint as authentication," Altman said. "That is a crazy thing to still be doing. AI has fully defeated that." Voiceprinting as an identification for wealthy bank clients grew popular more than a decade ago, with customers typically asked to utter a challenge phrase into the phone to access their accounts. But now AI voice clones, and eventually video clones, can impersonate people in a way that Altman said is increasingly "indistinguishable from reality" and will require new methods for verification. "That might be something we can think about partnering on," said Fed Vice Chair for Supervision Michelle Bowman, the central bank's top financial regulator, who was hosting the discussion with Altman.