Look around any neighborhood this Halloween and you’ll see plenty of monsters roaming the streets. Vampires, creatures, ghosts, and ghouls will all be out “wreaking havoc” (or, more accurately, trick-or-treating).
The real monsters threatening your financial firm, however, probably won’t look very scary.
They may look like a familiar client.
Sound like an executive.
Or arrive as a perfectly written email from someone your team trusts.
While financial firms are finding new ways to use artificial intelligence to improve productivity and efficiency, cybercriminals are also using AI to make scams more convincing.
Protecting your firm doesn't mean every employee needs to become an expert at detecting AI. It means having clear processes and safeguards in place so your team knows what to do when something doesn't seem right.
Garlic around your neck won't help with these monsters. Good cybersecurity habits will.
AI Shapeshifters: When Seeing and Hearing Isn't Believing
A familiar voice used to provide some reassurance that you were really talking to the person you thought you were.
AI is changing that.
AI-generated audio, images, and video can make impersonation attempts increasingly convincing. A fraudulent request could appear to come from an executive, coworker, client, or another trusted contact.
For financial services organizations, that's especially concerning when a request involves:
- Transferring money
• Changing account information
• Sharing confidential client information
• Resetting credentials
• Providing access to an account or system
Rather than relying on an employee to determine whether a voice, video, or message is fake, establish verification procedures for sensitive requests.
If someone requests an unusual financial transaction or account change, your team should know exactly how to verify it through a trusted channel before taking action.
The takeaway: Don't rely solely on what looks or sounds legitimate. Verify sensitive requests.
AI Mummies: Old Scams in Better Costumes
Phishing isn't new.
For years, employees were taught to look for obvious warning signs: spelling mistakes, strange grammar, awkward greetings, and suspicious wording.
Those clues aren't as reliable as they once were.
AI can help scammers create polished, personalized messages that sound professional and convincing. A phishing email might appear to come from a client, financial institution, vendor, coworker, or member of leadership.
It's the same old monster. It just has a much better costume.
Instead of relying only on how an email is written, teach employees to pay attention to what the message is asking them to do.
Is someone unexpectedly requesting sensitive information?
Are payment instructions suddenly changing?
Is there pressure to act immediately?
Does the message contain an unexpected login link or attachment?
Even a perfectly written email deserves a second look when the request itself is unusual.
The takeaway: Perfect grammar doesn't equal a legitimate message.
AI Vampires: Be Careful What You Invite In
According to vampire folklore, a vampire can't enter your home unless it's invited inside.
Unapproved AI tools can create a similar cybersecurity concern.
Employees may experiment with AI tools to draft emails, summarize documents, analyze information, or speed up routine work.
The problem comes when sensitive information gets entered into a tool your organization hasn't reviewed or approved.
Imagine an employee pasting client financial information, an internal report, account details, or another confidential document into an AI platform and asking it to create a summary.
Where does that information go?
Is it stored?
Could it be used by the provider?
Does using the tool align with your organization's security and data-handling requirements?
If your organization can't answer those questions, employees shouldn't be putting sensitive information into the platform.
That's why businesses need clear policies around approved AI tools and the information employees are permitted to share with them.
The takeaway: Know what you're inviting in before giving an AI tool access to sensitive information.
The Best Defense Against AI Monsters? Better Processes.
AI has made some forms of deception easier to create, more polished, and more convincing.
That doesn't mean your employees need to become AI detectives.
Instead, give them processes they can rely on regardless of how sophisticated a scam becomes.
Your financial firm should have clear expectations for:
- Verifying unusual financial or account requests
• Protecting confidential client information
• Reporting suspicious messages
• Using approved AI applications
• Handling sensitive information in AI tools
• Responding quickly when an employee thinks they've made a mistake
When those habits become part of everyday operations, your team doesn't have to decide whether every email, voice message, or video is real based on appearance alone.
They have a process to follow.
Is Your Financial Firm Prepared for the Spooky Side of AI?
AI can provide exciting opportunities for financial services firms, but adopting it should go hand in hand with protecting your data, systems, employees, and clients.
At Torch Networks, we help financial services organizations evaluate their cybersecurity environment, identify potential gaps, and put practical safeguards in place as technology and threats continue to evolve.
This Halloween, make sure the monsters aren't already hiding inside your network.
🎃 Schedule a discovery call with Torch Networks to take a closer look at how your organization is using AI, how sensitive requests are verified, and where your cybersecurity approach may need strengthening.
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🌐 www.torchnetworks.com
Proudly supporting financial services organizations in Dallas, Austin, San Marcos, and surrounding Texas communities.
