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AI is transforming every facet of our lives, and banking is no exception. Banks and credit unions are adopting AI-driven technologies to improve services and meet consumers' digital demands while protecting their assets, employees and customers/members. Keeping pace with their innovation, security threats are becoming increasingly sophisticated.
Brave New World for Banks and Credit Unions
The financial sector is witnessing an explosion of fraud and cyber attacks from attackers who are using generative AI to develop highly advanced scams to breach financial networks and outsmart legacy security solutions.
Banking crimes also include on-premise attacks like ATM “jackpotting,” which is defined by the Department of Justice as “the exploitation of physical and software vulnerabilities in ATMs that result in the machines dispensing cash to unauthorized fraudsters.”
The ATM Industry Association found a 165% year-over-year rise in ATM attacks, with both physical assaults on ATM machines and fraud schemes targeting consumers. Across the country, thieves in larger cities like Chicago and New York City, and smaller ones like Smyrna, Ga., and Lincoln, Neb., according to local news reports, have been caught on camera smashing cars into businesses and yanking ATMs out of stores. Yet the security camera footage is not always useful. Most standalone ATMs store video locally inside the machine. When thieves steal the ATM, they also take the video evidence – making it harder for law enforcement to catch them, and, in the absence of video proof, harder to prosecute them if they are caught. With crimes such as ATM theft and armed robbery evolving, instant access to video surveillance security footage is now a must.
AI’s Role in Banking Security
While criminals employ AI to commit fraud, AI-powered security systems are a potent tool for financial institutions to combat security threats and streamline operations. AI-driven video analytics can monitor branches and ATMs, detecting suspicious behaviors such as loitering near money machines. By identifying unusual behavior and notifying security teams in real time, these systems help deter criminal activity and create a safe environment for consumers and staff.
AI-powered video surveillance can also recognize patterns in fraudulent transactions, allowing financial institutions to act quickly against repeat offenders. Fraudsters often succeed with counterfeit checks, forged signatures or alterations with tactics such as check washing – withdrawing funds before their activity is flagged as suspicious. However, by capturing their branch or ATM presence with video surveillance, AI technology such as license plate or facial recognition can alert security of repeat attempts, which these suspects are 60% likely to commit.
Today, financial institutions use video surveillance technology to take proactive security measures. For example, they can now share access to select security cameras with 911 centers during an emergency, empowering 911 operators to provide first responders with ongoing guidance about what’s happening at the scene of an emergency. Another example is AI-powered gun detection, which can identify brandished guns in seconds and alert security personnel before a violent act can be committed.
The Call for Stronger Cybersecurity
Protecting financial and customer/member information is an ever-increasing priority as financial institutions migrate their operations to the cloud. Cyberattacks that target financial institutions are on the rise, so protections like encryption (at rest, in transit and in the cloud) and always-on firewalls are essential.
Cloud video surveillance does not require onsite IT staff to do manual updates because cybersecurity and feature updates are automatically delivered via the cloud.
Automation and Operational Efficiency
Bank and credit union security is also increasingly becoming automated. AI-driven systems can monitor video surveillance, identify threats and inform security immediately. This allows security personnel to focus on major events rather than continuous monitoring.
Financial institutions are also using automation to maintain their security infrastructure. Financial institutions can be alerted when cameras are offline or tampered with, reducing costs and minimizing the likelihood of technical failures that can compromise security.
Beyond physical security, sensors integrated with video surveillance can monitor bank server rooms, identifying environmental threats like overheating or humidity changes that can lead to costly equipment failure.
Looking Ahead: Innovation in Banking Safety
The future of banking security will be a combination of AI, real-time monitoring and proactive threat identification. Financial institutions are increasingly taking an integrated approach that includes advanced surveillance, cybersecurity measures and automated risk management.
By combining these technologies, banks and credit unions can safeguard their branches, customers/members and digital assets while enhancing efficiency. Threats continually evolve, but institutions have an opportunity to stay ahead with AI-powered security solutions.
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