AI and Financial Security: What Every Consumer Should Know

Artificial intelligence (AI) tools are becoming part of everyday life. From helping draft emails and answer questions to providing budgeting tips and researching financial topics, these platforms can be incredibly useful. However, as AI becomes more widely adopted, it is important to understand what information should never be shared and how to use these tools safely.

Just as consumers are encouraged to protect sensitive information on social media and other online platforms, the same caution should be applied when interacting with AI tools.

Never Share Personal, Financial, or Account Information

One of the most important rules when using AI platforms is to never enter sensitive financial or personal information.

This includes:

• Online banking usernames and passwords,
• One-time passcodes or multi-factor authentication codes,
• Account numbers,
• Debit or credit card information,
• Social Security numbers, and
• Tax documents or other sensitive financial records.

Legitimate financial institutions, businesses, and government agencies will never ask you to provide passwords or verification codes through an AI tool. Sharing this information could put your accounts and personal data at risk.

If you need help with your financial accounts, always contact your financial institution directly through official channels.

Understand How AI Platforms Use Information

Many AI tools process and store information that users submit. Depending on the platform, conversations may be retained, reviewed to improve services, or used to train future AI models.

Before sharing any information, take time to review the platform's privacy policy and understand how your data may be collected, stored, and used.

A good rule of thumb is to assume that anything entered into an AI platform could be stored beyond your current conversation. If information is private, confidential, or financially sensitive, it is best not to share it.

Be Cautious with Financial Advice

AI tools can be helpful for learning general financial concepts, creating budgets, or understanding basic terminology. However, they should not be viewed as a substitute for professional financial guidance.

AI-generated responses may:

• Contain inaccuracies or outdated information,
• Lack important details about your personal financial situation, and
• Present recommendations without considering your individual goals, risk tolerance, or circumstances.

When it comes to major financial decisions, including investments, retirement planning, borrowing, or tax-related questions, rely on qualified professionals and trusted financial institutions for guidance.

Verify Information Before Taking Action

AI can produce convincing answers, but that does not mean those answers are always correct.

Before making financial decisions based on AI-generated information:

• Verify information through trusted financial institutions,
• Consult official government resources when appropriate,
• Review information from reputable financial organizations, and
• Speak with a qualified financial professional when needed.

Taking a few extra minutes to verify information can help prevent costly mistakes and reduce the risk of fraud.

Watch for Scams That Use AI

Cybercriminals are increasingly using AI to create more convincing phishing emails, text messages, voice recordings, and online scams. These messages may appear more professional and realistic than traditional scam attempts.

Be cautious if you receive communications that:

• Create a sense of urgency,
• Request passwords or verification codes,
• Ask you to transfer money immediately, and/or
• Encourage you to click unfamiliar links or download attachments,

If something feels suspicious, contact the organization directly using a verified phone number or website rather than responding to the message.

Use AI Responsibly

AI tools can be valuable resources when used thoughtfully and securely. By protecting sensitive information, verifying important facts, and exercising caution with financial recommendations, consumers can enjoy the benefits of AI while reducing the risk of fraud and identity theft.

As technology continues to evolve, strong cybersecurity habits remain one of the best defenses against scams and financial fraud. Remember: before sharing information with any AI platform, think carefully about whether that information should remain private. When in doubt, leave it out.