OpenAI CEO Sam Altman has warned that the rise of artificial intelligence could soon trigger a widespread “fraud crisis”, particularly as current authentication methods fail to keep pace with technological advancements.
According to CNN, speaking at the Federal Reserve in front of an audience that included top representatives from major US financial institutions, Altman highlighted how easily AI can now bypass traditional security measures.
He expressed alarm that some banks still rely on voice authentication for high-value transactions, a method he described as obsolete in the face of modern AI. “A thing that terrifies me is apparently there are still some financial institutions that will accept a voice print as authentication for you to move a lot of money or do something else — you say a challenge phrase, and they just do it,” Altman said. “That is a crazy thing to still be doing… AI has fully defeated most of the ways that people authenticate currently, other than passwords.”
His remarks come at a critical moment, with the White House expected to unveil its “AI Action Plan” in the coming days. The document will set out policy guidelines to both regulate AI and cement the US’s leadership in the field. OpenAI has contributed recommendations to the plan and has intensified its policy engagement in Washington, advocating against what it views as overregulation.
Despite his warnings, Altman emphasised the broader economic and societal impact AI will have, suggesting it will play a pivotal role in shaping the future economy. OpenAI also announced plans to establish a permanent presence in Washington, DC, with a new office set to open early next year. The 30-person team will be led by Chan Park, OpenAI’s head of global affairs for the US and Canada, and Joe Larson, who joins from defence tech firm Anduril as vice president of government.
The Washington office will host policy discussions, technology demonstrations, and training sessions for educators and public officials. It will also serve as a research hub, focusing on the economic implications of AI and strategies to broaden access to its capabilities.
Despite cautioning about AI’s misuse, OpenAI has advised the Trump administration to avoid regulation that could hinder US competitiveness in global AI innovation. Earlier this month, the US Senate removed a proposed provision from a Trump-backed bill that would have barred states from enacting AI-related regulations for a decade.
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