Treasury Department Report Uncovers Cybersecurity Risks in Financial Services Industry

The Department of the Treasury has issued a report addressing artificial intelligence-related cybersecurity risks affecting financial services companies.

The “Managing Artificial Intelligence-Specific Cybersecurity Risks in the Finance Services Sector” highlights several opportunities and challenges associated with the technology, including using the technology to address a widening capability gap, improve regulatory coordination and provide a clear definition of AI-related lexicon.

The agency completed the report after conducting in-depth interviews with financial services and technology firms of all sizes to provide an extensive overview of current AI use cases for cybersecurity and fraud prevention, Treasury .gov reported.

Nellie Liang, the revenue service’s undersecretary for domestic finance, said that while AI is redefining cybersecurity and fraud in the industry, the Biden administration is working to ensure organizations can use emerging technologies to reduce or eliminate cyberattacks.

AI has been seeing several use cases in the department. The Treasury Department’s Bureau of Fiscal Service is looking at the technology to address challenging tasks through AI and robotic process automation.

It also adopted an AI-powered fraud detection solution, which helped the agency recover over $375 million since 2022.