AI incidents at banks: institution's own AI

Last updated Oct 21, 2026 · 9 incidents

How many AI incidents at banks since 2022 were cases where the bank's or fintech's own AI system failed, misbehaved, caused an outage, or was withdrawn or reversed?

As of Oct 21, 2026, the register holds 9 publicly reported AI incidents at banks and fintechs where the bank's or fintech's own AI system failed, misbehaved, caused an outage, or was withdrawn or reversed since January 2022. 5 of the 9 records involve systems the institution or a regulator described as AI; 4 are automated systems not described as AI. Countries: United States (4), Australia (1), United Kingdom (1). Average severity 2.7 on a 1–5 scale. Status: 1 reported, 2 confirmed by the institution, 1 regulator finding, 1 court filing, 3 settled, 1 resolved. The most recent is "Libra Internet Bank's OpenAI-based assistant 'Lia' calls a customer an 'idiot'" (Sep 17, 2026).

AI incidents by category, grouped by whose AI it wasInstitution's own AI: AI job-cut reversal 2, Other 2, Chatbot failure 1, Credit decisioning 1, Fraud model 1, Prompt injection 1, Trading automation 1.INSTITUTION'S OWN AIAI job-cut reversal2Other2Chatbot failure1Credit decisioning1Fraud model1Prompt injection1Trading automation1
Incidents per category within each AI role · bars link to the category page · computed from the register
DateInstitutionIncidentAI?RoleCategorySeverityStatus
Sep 17, 2026Libra Internet BankLibra Internet Bank's OpenAI-based assistant 'Lia' calls a customer an 'idiot'AI (stated)Institution's own AIChatbot failure 1Confirmed by the institution
May 4, 2026Bankr (Bankrbot), xAI (Grok)Morse-code prompt injection via Grok makes AI wallet agent Bankrbot send about $150,000-200,000 in tokensAI (stated)Institution's own AIPrompt injection 2Reported
Nov 4, 2025UpstartUpstart says its AI underwriting model over-reacted to macro signals, cutting approvals; investors sueAI (stated)Institution's own AICredit decisioning 3Court filing
Jul 29, 2025Commonwealth Bank of AustraliaCommonwealth Bank reverses 45 job cuts it attributed to an AI voice botAI (stated)Institution's own AIAI job-cut reversal 2Resolved
May 8, 2025KlarnaKlarna resumes hiring human agents after AI-first customer service produced 'lower quality'AI (stated)Institution's own AIAI job-cut reversal 2Confirmed by the institution
Apr 18, 2023BettermentSEC fines robo-adviser Betterment $9m after coding errors stopped automated tax-loss harvestingAutomation, not AIInstitution's own AIOther 3Settled
Aug 10, 2022OportunCFPB fines Oportun's Hello Digit $2.7m after its automated savings algorithm overdrafted customersAutomation, not AIInstitution's own AIOther 3Settled
Jul 14, 2022Bank of AmericaRegulators fine Bank of America $225m over automated fraud filter that froze unemployment-benefit cardsAutomation, not AIInstitution's own AIFraud model 4Settled
May 2, 2022Citigroup (Citigroup Global Markets Limited)Citi trading algorithm sells $1.4bn of European stocks after an input error; UK and German finesAutomation, not AIInstitution's own AITrading automation 4Regulator finding

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