# What regulators warn banks about on AI Source: https://www.bankingnewsai.com/ai-regulation/regulator-warnings Last updated: Oct 12, 2026 30 warning-type documents (alerts, Dear-CEO letters, risk reports), newest first, grouped by theme. ## Fraud and scams - Sep 3, 2026 — [FinCEN](https://www.bankingnewsai.com/ai-regulation/fincen): [FIN-2026-Alert005 (Digital Asset Investment Scam Centers)](https://www.bankingnewsai.com/ai-regulation/documents/fincen-alert-2026-scam-centers) — FinCEN Alert FIN-2026-Alert005, issued September 3, 2026, urges financial institutions to detect and report money laundering tied to digital asset investment ('pig butchering') scam centers, predominantly run by Southeast Asia-based transnational criminal organizations (TCOs). - Jul 24, 2026 — [FinCEN](https://www.bankingnewsai.com/ai-regulation/fincen): [FIN-2026-Alert004 (Federal Student Aid Fraud)](https://www.bankingnewsai.com/ai-regulation/documents/fincen-alert-2026-federal-student-aid-fraud) — FinCEN Alert FIN-2026-Alert004, issued July 24, 2026, asks financial institutions to detect and report fraud rings stealing federal student aid through 'ghost students' and 'straw students.' It states that fraudsters may use artificial intelligence to generate fraudulent documents combining stolen and fabricated personal information (synthetic identities) to pass identity verification, and may use AI-powered chatbots to complete coursework so a ghost student stays enrolled long enough to collect a refund. - May 7, 2026 — [OCC](https://www.bankingnewsai.com/ai-regulation/occ): [OCC Semiannual Risk Perspective, Spring 2026](https://www.bankingnewsai.com/ai-regulation/documents/occ-semiannual-risk-perspective-spring-2026) — The OCC's Spring 2026 Semiannual Risk Perspective, released May 7, 2026, says artificial intelligence is 'significantly transforming the cyber threat landscape' — lowering the barrier to entry for attackers and increasing the 'speed, scale, and sophistication' of cyberattacks and fraud — while also giving banks new defensive capabilities. - Dec 11, 2025 — [U.S. Treasury](https://www.bankingnewsai.com/ai-regulation/treasury): [FSOC 2025 Annual Report](https://www.bankingnewsai.com/ai-regulation/documents/fsoc-annual-report-2025) — FSOC's 2025 annual report, unanimously approved December 11, 2025, made 'harnessing AI to promote financial stability' one of four priority areas and formalized an FSOC Artificial Intelligence Working Group. - Sep 18, 2025 — [MAS](https://www.bankingnewsai.com/ai-regulation/mas): [MAS Circular MAS/TCRS/2025/06](https://www.bankingnewsai.com/ai-regulation/documents/mas-circular-cyber-risks-deepfakes-2025) — MAS circular MAS/TCRS/2025/06, an information paper dated September 2025 and issued on 18 September 2025, examines how deepfakes threaten financial institutions and what mitigating measures they can take. - Jul 14, 2025 — [FDIC](https://www.bankingnewsai.com/ai-regulation/fdic): [FDIC 2025 Report on Cybersecurity and Resilience](https://www.bankingnewsai.com/ai-regulation/documents/fdic-cybersecurity-resilience-report-2025) — The FDIC's 2025 Report on Cybersecurity and Resilience, submitted to the House Financial Services and Senate Banking Committees under Section 108 of the Consolidated Appropriations Act, 2021 and posted in July 2025, warns that nation-state actors and cybercriminals are using generative AI to research targets and vulnerabilities, write malware, and run phishing campaigns, and that AI is being used to circumvent banks' identity and authentication controls. - Mar 24, 2025 — [NIST](https://www.bankingnewsai.com/ai-regulation/nist): [NIST AI 100-2e2025 (Adversarial ML)](https://www.bankingnewsai.com/ai-regulation/documents/nist-ai-100-2e2025) — NIST AI 100-2e2025, finalized on March 24, 2025, is NIST's taxonomy and terminology of adversarial machine learning attacks and mitigations, updating the January 2024 edition (AI 100-2e2023). - Nov 14, 2024 — [FSB](https://www.bankingnewsai.com/ai-regulation/fsb): [FSB AI financial stability report (Nov 2024)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-financial-stability-implications-of-ai-2024) — On 14 November 2024 the FSB published its post-generative-AI assessment of AI's financial-stability implications. - Nov 13, 2024 — [FinCEN](https://www.bankingnewsai.com/ai-regulation/fincen): [FIN-2024-Alert004 (Deepfake Media)](https://www.bankingnewsai.com/ai-regulation/documents/fincen-alert-2024-deepfake-media) — FinCEN Alert FIN-2024-Alert004, issued November 13, 2024, warns that criminals are using generative AI to create deepfake identity documents, images, video, and audio to defeat banks' identity verification, authentication, and due diligence controls. - Oct 16, 2024 — [NY DFS](https://www.bankingnewsai.com/ai-regulation/ny-dfs): [DFS AI Cybersecurity Industry Letter (Oct 2024)](https://www.bankingnewsai.com/ai-regulation/documents/ny-dfs-industry-letter-2024-10-16-ai-cyber-risks) — On October 16, 2024, DFS issued an Industry Letter telling every DFS-regulated entity how to address AI-related cyber risk under 23 NYCRR Part 500. - Jul 30, 2024 — [MAS](https://www.bankingnewsai.com/ai-regulation/mas): [MAS Circular MAS/TCRS/2024/05](https://www.bankingnewsai.com/ai-regulation/documents/mas-circular-cyber-risks-generative-ai-2024) — MAS circular MAS/TCRS/2024/05, published on 30 July 2024, is an information paper that gives financial institutions an overview of cyber threats arising from generative AI, the risk implications and mitigation measures. - May 22, 2024 — [FDIC](https://www.bankingnewsai.com/ai-regulation/fdic): [FDIC 2024 Risk Review](https://www.bankingnewsai.com/ai-regulation/documents/fdic-risk-review-2024) — The FDIC's 2024 Risk Review, published May 22, 2024, is the agency's most explicit published treatment of AI as a bank risk. - Mar 27, 2024 — [U.S. Treasury](https://www.bankingnewsai.com/ai-regulation/treasury): [Treasury AI cybersecurity risks report (Mar 2024)](https://www.bankingnewsai.com/ai-regulation/documents/treasury-ai-cybersecurity-risks-report-2024) — On March 27, 2024 the Treasury released 'Managing Artificial Intelligence-Specific Cybersecurity Risks in the Financial Services Sector', written under Executive Order 14110 and led by its Office of Cybersecurity and Critical Infrastructure Protection. - Jan 25, 2024 — [CFTC](https://www.bankingnewsai.com/ai-regulation/cftc): [CFTC AI Scams Customer Advisory](https://www.bankingnewsai.com/ai-regulation/documents/cftc-ai-scams-customer-advisory-2024) — On January 25, 2024 the CFTC's Office of Customer Education and Outreach warned that fraudsters exploit interest in artificial intelligence to sell trading bots, signal services, and crypto schemes promising guaranteed returns. ## Cyber and operational resilience - Sep 2, 2026 — [UK (BoE / PRA / FCA)](https://www.bankingnewsai.com/ai-regulation/uk): [FCA multi-firm review: Frontier AI and cyber resilience (Sep 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fca-frontier-ai-cyber-resilience-2026) — The FCA published a multi-firm review on 2 September 2026 sharing what it learned engaging with firms on frontier AI and cyber resilience. - Aug 31, 2026 — [FSB](https://www.bankingnewsai.com/ai-regulation/fsb): [FSB Chair's letter to G20 (Aug 2026)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-chair-letter-g20-august-2026) — On 31 August 2026, ahead of the G20 Finance Ministers and Central Bank Governors meeting, FSB Chair Andrew Bailey wrote that frontier AI models now show 'increasingly sophisticated autonomy and problem-solving abilities, as well as threat capabilities', and that their most immediate financial-stability impact is on cyber risk. - Jul 31, 2026 — [EBA](https://www.bankingnewsai.com/ai-regulation/eba): [ESA Statement on ICT risks from frontier AI models (JC 2026 25)](https://www.bankingnewsai.com/ai-regulation/documents/esas-jc-2026-25-frontier-ai-statement) — On July 31, 2026 the EBA, EIOPA and ESMA published joint statement JC 2026 25 on ICT risks from frontier AI models, warning that highly capable AI models sharply accelerate vulnerability discovery and exploitation and could create systemic cyber risk. - Jul 7, 2026 — [ECB](https://www.bankingnewsai.com/ai-regulation/ecb): [ECB 'Dear CEO' letter on AI-enabled cybersecurity threats (SSM-2026-0301)](https://www.bankingnewsai.com/ai-regulation/documents/ecb-letter-ai-enabled-cybersecurity-threats-2026) — On 7 July 2026 Claudia Buch, Chair of the ECB Supervisory Board, sent letter SSM-2026-0301, 'Addressing AI-enabled cybersecurity threats', to the CEO of every significant institution. - Jun 2, 2026 — [Hong Kong SFC](https://www.bankingnewsai.com/ai-regulation/sfc): [SFC Circular 26EC32 (AI-enabled cyberattacks)](https://www.bankingnewsai.com/ai-regulation/documents/sfc-circular-ai-enabled-cyberattacks-2026) — SFC Circular 26EC32 (reference SFO/IS/020/2026), issued on 2 June 2026, reminds licensed corporations, SFC-licensed virtual asset trading platforms and their associated entities to review and enhance cybersecurity against AI-enabled cyberattacks, citing the heightened attack risks posed by frontier AI models. - May 22, 2026 — [Japan FSA](https://www.bankingnewsai.com/ai-regulation/japan-fsa): [Japan FSA/BOJ frontier AI request](https://www.bankingnewsai.com/ai-regulation/documents/japan-fsa-boj-frontier-ai-request-2026) — On 22 May 2026 the Japan Financial Services Agency and the Bank of Japan jointly requested financial institutions to take short-term measures against the changed cyber threat posed by frontier AI, which can discover vulnerabilities and generate attack code far faster than before. - May 21, 2026 — [NY DFS](https://www.bankingnewsai.com/ai-regulation/ny-dfs): [DFS Frontier AI Models Industry Letter (May 2026)](https://www.bankingnewsai.com/ai-regulation/documents/ny-dfs-industry-letter-2026-05-21-frontier-ai-models) — On May 21, 2026, DFS issued an Industry Letter warning that 'frontier AI models' able to identify vulnerabilities and build exploits at unprecedented speed and scale will soon become widely available, and directing regulated entities to prepare before they do. - May 21, 2026 — [NY DFS](https://www.bankingnewsai.com/ai-regulation/ny-dfs): [DFS Heightened Threat Environment Guidance (May 2026)](https://www.bankingnewsai.com/ai-regulation/documents/ny-dfs-industry-letter-2026-05-21-heightened-threat-environment) — Issued May 21, 2026 as the companion to DFS's frontier-AI letter, this guidance defines a 'heightened cybersecurity threat environment' as one where risks are significantly elevated with a high likelihood of impacting information systems, nonpublic information, or operations — expressly including the arrival of frontier AI models — and lists the measures DFS expects firms to consider in three areas: reducing the attack surface, improving threat detection and readiness, and improving resilience and response. - May 15, 2026 — [UK (BoE / PRA / FCA)](https://www.bankingnewsai.com/ai-regulation/uk): [BoE/FCA/HMT joint statement on frontier AI and cyber resilience (May 2026)](https://www.bankingnewsai.com/ai-regulation/documents/uk-joint-statement-frontier-ai-cyber-resilience-2026) — On 15 May 2026 the Bank of England, FCA and HM Treasury jointly warned that frontier AI models' cyber capabilities already exceed what a skilled practitioner could achieve, at higher speed, scale and lower cost, and that regulated firms and FMIs must act under existing operational-resilience rules to plan for and mitigate the resulting threats. - Apr 30, 2026 — [APRA / ASIC](https://www.bankingnewsai.com/ai-regulation/australia): [APRA AI Letter to Industry (April 2026)](https://www.bankingnewsai.com/ai-regulation/documents/apra-letter-industry-ai-2026) — APRA's Letter to Industry on Artificial Intelligence, published on 30 April 2026 and addressed to all APRA-regulated entities, calls for a step-change in how banks, insurers and superannuation trustees manage AI-related risk. - Oct 10, 2025 — [FSB](https://www.bankingnewsai.com/ai-regulation/fsb): [FSB AI monitoring report (Oct 2025)](https://www.bankingnewsai.com/ai-regulation/documents/fsb-monitoring-ai-adoption-vulnerabilities-2025) — Published 10 October 2025, this report gives national authorities key considerations and candidate indicators for tracking AI adoption and the vulnerabilities identified in November 2024 — third-party dependencies, market correlations, cyber risk, and model-risk and governance gaps. - Apr 9, 2025 — [UK (BoE / PRA / FCA)](https://www.bankingnewsai.com/ai-regulation/uk): [FPC Financial Stability in Focus: AI (Apr 2025)](https://www.bankingnewsai.com/ai-regulation/documents/boe-fpc-fsif-ai-financial-system-2025) — The Bank of England's Financial Policy Committee published its first dedicated assessment of AI and financial stability on 9 April 2025. - Sep 24, 2024 — [OSFI](https://www.bankingnewsai.com/ai-regulation/osfi): [OSFI-FCAC AI Risk Report (2024)](https://www.bankingnewsai.com/ai-regulation/documents/osfi-fcac-ai-risk-report-2024) — The OSFI-FCAC Risk Report on AI uses and risks, published on 24 September 2024 by the Office of the Superintendent of Financial Institutions and the Financial Consumer Agency of Canada, is the regulators' joint survey of how Canadian federally regulated financial institutions use AI and what risks follow. - May 1, 2024 — [ECB](https://www.bankingnewsai.com/ai-regulation/ecb): [ECB FSR May 2024 AI special feature](https://www.bankingnewsai.com/ai-regulation/documents/ecb-fsr-may-2024-ai-special-feature) — In May 2024 the ECB's Financial Stability Review carried a special feature, 'The rise of artificial intelligence: benefits and risks for financial stability', by Leitner, Singh, van der Kraaij and Zsámboki. ## Financial stability and market risk - Oct 29, 2024 — [APRA / ASIC](https://www.bankingnewsai.com/ai-regulation/australia): [ASIC REP 798](https://www.bankingnewsai.com/ai-regulation/documents/asic-rep-798) — ASIC Report 798, 'Beware the gap: Governance arrangements in the face of AI innovation', released on 29 October 2024, is the Australian Securities and Investments Commission's first examination of how financial services and credit licensees use AI where it affects consumers. - Feb 13, 2024 — [SEC](https://www.bankingnewsai.com/ai-regulation/sec): [Gensler 'AI washing' remarks at Yale (Feb 2024)](https://www.bankingnewsai.com/ai-regulation/documents/sec-gensler-ai-washing-speech-2024) — On February 13, 2024 SEC Chair Gary Gensler used a Yale Law School speech to put 'AI washing' on the record as a securities-law problem: public companies and investment advisers that overstate their AI use or make boilerplate AI disclosures risk violating the antifraud provisions. --- Canonical page: https://www.bankingnewsai.com/ai-regulation/regulator-warnings Part of [BankingNewsAI](https://www.bankingnewsai.com/) — a free daily brief on AI in banking, an AI regulation tracker (41 authorities, 238 documents) and AI-strategy profiles of the 120 largest US banks. 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