42 bank executives were questioned about their worries regarding cybersecurity for the report, which was the outcome of an executive order signed by Joe Biden in 2023.

It was discovered that US institutions are becoming more concerned about advancements in AI and the rise of so-called deep fakes.

According to the paper, "the financial services sector is increasingly vulnerable to costly cybersecurity threats and cyber-enabled frauds." "It is likely that, at least initially, cyberthreat actors using emerging AI tools will have the advantage by outpacing and outnumbering their targets as access to advanced tools becomes more widespread."

The study is released in the midst of a concerning increase in customer complaints. In 2023, 880,000 calls were made to the FBI's Crime Complaint Center by victims of cybercrimes, a 22% increase from the year before.

The paper recommends that banks should share more data and work together more frequently, in addition to updating their risk management frameworks to account for advancements in AI.

Additionally, it urges regulators to draft rules in a more "dynamic" manner. This will strengthen defenses against fraudsters and facilitate the quick implementation of AI systems that follow stronger risk management guidelines.

The report emphasizes the importance of a balanced regulatory environment, stating that it is crucial for empowering institutions to leverage AI's full potential in combating sophisticated threats. This empowerment is essential without being hindered by overly restrictive oversight.

Nellie Liang, undersecretary for domestic finance, stated in a statement that accompanied the report that "artificial intelligence is redefining cybersecurity and fraud in the financial services sector, and the Biden administration is committed to working with financial institutions to use emerging technologies while safeguarding against threats to operational resiliency and financial stability."