Several of the largest US banks are blocking third-party artificial intelligence agents from logging into customer accounts and moving money, Reuters reported on October 22, citing people familiar with the matter. JPMorgan, Bank of America, Citi and Morgan Stanley are among the lenders named in the reporting, and Charles Schwab’s chief executive said the brokerage is also blocking unauthorized agents.
The issue is less the AI itself than how it gets in. Some customers have handed their usernames and passwords to AI assistants so the software can check balances, pay bills or move cash on their behalf. Banks can see which credentials were used, but they often cannot tell whether a person or a piece of software was directing the session, which raises hard questions about fraud and about who is liable when something goes wrong.
“We strongly believe there should be a human in the loop to authorise money moving out of your account,” Bank of America’s chief executive said, according to the reports.
Citi said it does not allow third-party AI agents to log in or transact directly, although customers can still grant limited, read-only access through approved open-banking providers. JPMorgan likewise permits view-only access through intermediaries such as Plaid, but not transfers or bill payments. Morgan Stanley said it had not seen rogue AI agents on its platforms and is blocking third-party agents as a precaution.
There is a business concern too: agents that automatically sweep idle cash into higher-yielding accounts could pull deposits away from banks. The Financial Times reported that regulators have privately supported the banks’ decision.
What it means for customers
If you use an AI assistant for personal finance, check whether it connects through your bank’s approved data-sharing channel rather than by storing your password. Sharing credentials with any outside tool can breach your account agreement and may weaken your protection if money goes missing.
Sources: Reuters via Investing.com, Yahoo Finance, TechRadar.
Image: illustration created for AABEAT TV. It does not depict the people, places or products named in this story.
