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Dan Hartman Discusses Agentic AI and Bank Fraud Risk in Banker & Tradesman
Print PDFDan Hartman, of counsel in Nutter’s Corporate Department and a member of the firm’s Banking and Financial Services group, was quoted in the Banker & Tradesman article “AI Agent Shoppers Challenge Lenders' Fraud-Fighting Tools, Experts Say.” The article examines how the emergence of agentic AI could complicate fraud detection for community banks and credit unions.
“A lot of these banks are just concerned that even if they’re not liable, the customers tend to trust their community bank the most. We’re in the very early stages of this new technology, and they are just trying to stay abreast of everything that’s going on and what their customers are looking to do,” said Dan.
Dan also pointed out that regulatory frameworks and internal guardrails will also be necessary to protect institutions from errors. He added that a national Agentic Payments Alliance has been created to standardize protocols such as authorization.
“I think that one of the top risks that regulators – and, I think, lawyers – all agree on is one of the major risks is to do nothing. This is just one of those things where customers are going to be dealing with this, and so if you don’t take the bull by the horns, then AI is going to be forced upon you. When you’re in that type of situation, you’re never dealing from a place of strength, and that’s not what banks are known for,” Dan concluded.
