FINRA Warns About Generative AI
People’s investments can be threatened by bad actors using Gen AI to improperly access investment accounts or fraudulently open up new accounts.
Column distributed by Hearst Connecticut Media Group.
Links to resources referenced:
- FBI Public Service Announcement
- https://www.ic3.gov/PSA/2024/PSA241203
- Related column excerpt:
- “The FBI says yes. It issued a public service announcement in December 2024 stating that ‘criminals exploit generative artificial intelligence … to commit fraud on a larger scale which increases the believability of their schemes. Generative AI reduces the time and effort criminals must expend to deceive their targets.’”
- FINRA: Protecting Your Investment Accounts From Gen AI Fraud
- https://www.finra.org/investors/insights/gen-ai-fraud-new-accounts-and-takeovers?utm_source=MM&utm_medium=email&utm_campaign=O%5FMediaAdvisory%5FAI%5FFraud%5F011625%5FFINAL
- Related column excerpt:
- “FINRA goes further: You need to protect your investment accounts from ‘generative artificial intelligence’ or Gen AI. FINRA (the Financial Industry Regulatory Authority) oversees member broker-dealers who do business in the U.S.”
- Cybersecurity and Infrastructure Security Agency: Use Strong Passwords
- https://www.cisa.gov/secure-our-world/use-strong-passwords
- Related column excerpt:
- “Use a password manager: The U.S government’s Cybersecurity and Infrastructure Security Agency describes a password manager as ‘an easy-to-use program that generates, stores and even fills in all your passwords.’ FINRA points out that the benefits of using a password manager include ‘secure storage, unique and complex passwords, and centralized management.’”
- FBI Internet Crime Report 2023
- https://www.ic3.gov/AnnualReport/Reports/2023_IC3Report.pdf
- Related column excerpt:
- “According to the FBI’s most recent Internet Crime Report, released in 2024, three of the top five categories of reported crime were Phishing/Spoofing, Personal Data Breach and Investment, with a combined total loss of more than $5.3 billion.”
- FINRA File a Tip
- https://www.finra.org/contact-finra/file-tip
- Related column excerpt:
- “If you feel that you may have been compromised, you can report possible Gen AI or other investment fraud attempts are FINRA, the U.S. Securities and Exchange Commission and the FBI’s Internet Crimes Complaint Center.”
- U.S. Securities and Exchange Commission: Submit a Tip or Complaint
- https://www.sec.gov/submit-tip-or-complaint
- Related column excerpt:
- “If you feel that you may have been compromised, you can report possible Gen AI or other investment fraud attempts are FINRA, the U.S. Securities and Exchange Commission and the FBI’s Internet Crimes Complaint Center.”
- Internet Crime Complaint Center
- https://www.ic3.gov/
- Related column excerpt:
- “If you feel that you may have been compromised, you can report possible Gen AI or other investment fraud attempts are FINRA, the U.S. Securities and Exchange Commission and the FBI’s Internet Crimes Complaint Center.”