A new U.K. regulation requiring banks to reimburse customers for losses resulting from push payment fraud “deserves greater discussion and debate” in the U.S., particularly when the fraud is powered by artificial intelligence, Acting Comptroller of the Currency Michael Hsu said today. In a speech on economic fairness, Hsu discussed the role of AI in the banking sector, saying the technology can be both a tool for fighting fraud and a vehicle for turbocharging the problem. Banks and AI companies are best positioned to deliver fraud solutions, he said.
As a possible motivation for the banking and AI sectors, Hsu pointed to the U.K.’s Payment Systems Regulator, which recently issued a rule requiring banks to reimburse customers when criminals trick them into sending money to a fraudulent account. The reimbursement is split 50/50 between the customer’s bank and the receiving bank.
“In cases where AI plays a role in the fraud, splitting the liability evenly between the customer’s bank, the receiving bank and the AI platform would seem to be a good starting point for consideration,” Hsu said. “Such a liability split would protect consumers while creating strong incentives for those best positioned to develop effective defenses.”
