# AI incidents at banks: institution's own AI

Source: https://www.bankingnewsai.com/ai-incidents/role/own-ai
Last updated: Oct 21, 2026

## 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at banks since 2022 were cases where the bank's or fintech's own AI system failed, misbehaved, caused an outage, or was withdrawn or reversed?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at banks and fintechs where the bank's or fintech's own AI system failed, misbehaved, caused an outage, or was withdrawn or reversed since January 2022. 5 of the 9 records involve systems the institution or a regulator described as AI; 4 are automated systems not described as AI.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).

| Date | Institution | Incident | AI? | Role | Category | Severity | Status |
| --- | --- | --- | --- | --- | --- | --- | --- |
| Sep 17, 2026 | Libra Internet Bank | [Libra Internet Bank's OpenAI-based assistant 'Lia' calls a customer an 'idiot'](https://www.bankingnewsai.com/ai-incidents/libra-internet-bank-2026-lia-chatbot-insult) | AI (stated) | Institution's own AI | Chatbot failure | 1/5 | Confirmed by the institution |
| May 4, 2026 | Bankr (Bankrbot) and xAI (Grok) | [Morse-code prompt injection via Grok makes AI wallet agent Bankrbot send about $150,000-200,000 in tokens](https://www.bankingnewsai.com/ai-incidents/bankr-2026-grok-morse-prompt-injection) | AI (stated) | Institution's own AI | Prompt injection | 2/5 | Reported |
| Nov 4, 2025 | Upstart | [Upstart says its AI underwriting model over-reacted to macro signals, cutting approvals; investors sue](https://www.bankingnewsai.com/ai-incidents/upstart-2025-model-22-overreaction) | AI (stated) | Institution's own AI | Credit decisioning | 3/5 | Court filing |
| Jul 29, 2025 | Commonwealth Bank of Australia | [Commonwealth Bank reverses 45 job cuts it attributed to an AI voice bot](https://www.bankingnewsai.com/ai-incidents/commonwealth-bank-ai-voice-bot-job-cuts-reversed) | AI (stated) | Institution's own AI | AI job-cut reversal | 2/5 | Resolved |
| May 8, 2025 | Klarna | [Klarna resumes hiring human agents after AI-first customer service produced 'lower quality'](https://www.bankingnewsai.com/ai-incidents/klarna-2025-ai-customer-service-reversal) | AI (stated) | Institution's own AI | AI job-cut reversal | 2/5 | Confirmed by the institution |
| Apr 18, 2023 | Betterment | [SEC fines robo-adviser Betterment $9m after coding errors stopped automated tax-loss harvesting](https://www.bankingnewsai.com/ai-incidents/betterment-2023-tax-loss-harvesting-coding-errors) | Automation, not AI | Institution's own AI | Other | 3/5 | Settled |
| Aug 10, 2022 | Oportun | [CFPB fines Oportun's Hello Digit $2.7m after its automated savings algorithm overdrafted customers](https://www.bankingnewsai.com/ai-incidents/oportun-2022-hello-digit-savings-algorithm) | Automation, not AI | Institution's own AI | Other | 3/5 | Settled |
| Jul 14, 2022 | Bank of America | [Regulators fine Bank of America $225m over automated fraud filter that froze unemployment-benefit cards](https://www.bankingnewsai.com/ai-incidents/bank-of-america-2022-unemployment-card-fraud-filter) | Automation, not AI | Institution's own AI | Fraud model | 4/5 | Settled |
| May 2, 2022 | Citigroup (Citigroup Global Markets Limited) | [Citi trading algorithm sells $1.4bn of European stocks after an input error; UK and German fines](https://www.bankingnewsai.com/ai-incidents/citigroup-2022-flash-crash-trading-algorithm) | Automation, not AI | Institution's own AI | Trading automation | 4/5 | Regulator finding |

The register: https://www.bankingnewsai.com/ai-incidents

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Canonical page: https://www.bankingnewsai.com/ai-incidents/role/own-ai
Part of [BankingNewsAI](https://www.bankingnewsai.com/) — the register of AI incidents at banks: https://www.bankingnewsai.com/ai-incidents. Markdown versions of every reference page: append `.md` to the page URL; index at https://www.bankingnewsai.com/llms.txt.