ASA Highlights Increasing Threat of Cyber Criminals Utilizing Artificial Intelligence

WASHINGTON – The American Securities Association (ASA) today sent a letter to the Senate Banking Committee ahead of a hearing examining the role of artificial intelligence (AI) in the U.S. capital markets. In its letter to the Committee, ASA highlighted the threat to American investors and consumers from cyber criminals and fraudsters utilizing AI, and how the private sector and government can partner together to prevent it. 

"While AI is unlocking innovative opportunities across the U.S. capital markets, it also enhances cyber criminals' and fraudsters' ability to use new technologies to target American savers, retirees, and working families," said ASA President and CEO Chris Iacovella. "We look forward to partnering with the Senate Banking Committee to address how business and government can partner together to reduce the risk of AI-generated fraud from harming Americans."

“Criminals are becoming increasingly sophisticated in their techniques using generative AI and other means. Fraud has gone from an individual criminal act to a business opportunity funded by state-sponsored actors across the globe.” Iacovella wrote in the letter.

In April, Iacovella testified at a joint hearing with the Senate Special Committee on Aging and the House Select Committee on the Chinese Communist Party (CCP) titled “Financial Aggression: How the Chinese Communist Party Exploits American Retirees and Undermines National Security". In his testimony, he highlighted how CCP-sponsored scammers are targeting American seniors and retirement savers. “The only way to try to combat the sophistication of this ever-changing criminal activity going forward is to promote an open, honest, and trustworthy partnership between the private sector and government."

Read ASA's full letter here.

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The American Securities Association (ASA) represents the retail and institutional capital markets interests of regional financial services firms who provide Main Street businesses with access to capital and advise hardworking Americans how to create and preserve wealth. ASA’s mission is to promote trust and confidence among investors, facilitate capital formation, and support efficient and competitively balanced capital markets. This mission advances financial independence, stimulates job creation, and increases prosperity. The ASA has a geographically diverse membership of almost one hundred members that spans the Heartland, Southwest, Southeast, Atlantic, and Pacific Northwest regions of the United States.