Independent Banker - September 2023 - 28

PORTFOLIO
generative AI to create efficiencies,
it is also accelerating the evolution
of cybercrime, fraud and scams.
" These chatbots are coming to
the point where they can mimic
human interactions very, very well, "
says Bharwani.
AI cybersecurity challenges
For example, generative AI can scrape
social media to gather personal
information and create a fake persona
that sounds like someone you might
know. Imagine a customer who
receives a phishing email that is
mimicking a bank loan officer and is
asked to disclose personal financial
information, or even wire funds to
a fake title company in advance of
a closing. Generative AI also can
scour the internet for audio clips to
replicate voices.
" What we're going to see is
criminals taking all of these old
scams, and we're going to see these
replayed on digital media to people, "
notes Barry Thompson, managing
" It is a lot of information, but
we're trying to break it down
and understand it, because it
is more on the forefront now,
and we're using a lot more AI
than we think we are. "
-SAMUEL L. JAMES, BANK OF ZACHARY
partner at Thompson Consulting
Group, LLC. The concern is that bad
actors can use generative AI to learn
how to be more effective at what they
do, with scams that are more realistic
and difficult to detect.
Stepping up education on
generative AI
Just as cybercriminals use generative
AI to get smarter, community bank
leaders can take advantage of the same
tools to shore up their defenses and
manage downside risks. For example,
banks can leverage generative AI tools
as a resource for identifying things like
check fraud, notes Thompson.
Banks also need to stay current on
the scams and continue to educate
customers on basic security practices.
Community bankers should make it
clear to customers that if someone
who appears to be from the bank texts,
emails or calls asking for personal
financial information, they should
call the person back at the main bank
phone number to verify that it's a
legitimate request.
The Bank of Zachary's approach
to generative AI risk
" It's really difficult to understand whether an attack is happening
through AI or not, " says Samuel L. James, senior vice president,
enterprise risk management at Bank of Zachary in Zachary, La. " So,
what we are constantly doing is being aware of the fraud-related
activities in general. "
He says that many of the phishing, romance and family member
scams out there are likely being generated by AI and are becoming
more realistic and personal. " People fell for the bad product, and we
have to assume that it will get [more sophisticated], " James adds.
The Bank of Zachary places emphasis on the importance of
verification: Customers shouldn't just read an email or text and
assume it's true. They should pick up the phone and call that
person. " The biggest takeaway is that we still have to do the basic
things, " says James.
In an environment where
generative AI is moving incredibly
fast, community banks are working
to keep up with the latest information
and changes.
" We're trying to make sure we can
drink everything from the firehose that
we can possibly drink, " says Samuel
L. James, senior vice president,
enterprise risk management at
$400 million-asset Bank of Zachary in
Zachary, La. " It is a lot of information,
but we're trying to break it down and
understand it, because it is more on
the forefront now, and we're using a lot
more AI than we think we are. "
Beth Mattson-Teig is a writer
in Minnesota.
28 // ICBA Independent Banker // September 2023

Independent Banker - September 2023

Table of Contents for the Digital Edition of Independent Banker - September 2023

Contents
Independent Banker - September 2023 - Cover1
Independent Banker - September 2023 - Cover2
Independent Banker - September 2023 - Contents
Independent Banker - September 2023 - 2
Independent Banker - September 2023 - 3
Independent Banker - September 2023 - 4
Independent Banker - September 2023 - 5
Independent Banker - September 2023 - 6
Independent Banker - September 2023 - 7
Independent Banker - September 2023 - 8
Independent Banker - September 2023 - 9
Independent Banker - September 2023 - 10
Independent Banker - September 2023 - 11
Independent Banker - September 2023 - 12
Independent Banker - September 2023 - 13
Independent Banker - September 2023 - 14
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