OpenAI's Sam Altman warns of AI voice fraud crisis in banking
WASHINGTON — OpenAI CEO Sam Altman warned the financial industry of a 'significant impending fraud crisis' because of the ability of artificial intelligence tools to impersonate a person's voice to bypass security checks and move money.
Altman spoke at a Federal Reserve conference Tuesday in Washington.
'A thing that terrifies me is apparently there are still some financial institutions that will accept the voiceprint as authentication,' Altman said. 'That is a crazy thing to still be doing. AI has fully defeated that.'
Voiceprinting as an identification for wealthy bank clients grew popular more than a decade ago, with customers typically asked to utter a challenge phrase into the phone to access their accounts.
But now AI voice clones, and eventually video clones, can impersonate people in a way that Altman said is increasingly 'indistinguishable from reality' and will require new methods for verification.
'That might be something we can think about partnering on,' said Fed Vice Chair for Supervision Michelle Bowman, the central bank's top financial regulator, who was hosting the discussion with Altman.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Globe and Mail
6 hours ago
- Globe and Mail
IBM Boosts Forecast on AI and Red Hat
International Business Machines (NYSE:IBM) reported 2Q 2025 earnings on July 23, 2025, delivering $17 billion in revenue and $4.8 billion in first-half free cash flow, driven by standout software and infrastructure gains. The company raised its full-year free cash flow outlook to above $13.5 billion and affirmed revenue growth guidance above 5%, supported by double-digit Red Hat growth, robust automation, and surging AI-related bookings. Key insights below highlight IBM's accelerating software momentum, transformation in productivity, and expanding AI footprint. Red Hat and automation fuel IBM software acceleration Red Hat contributed 3.5 percentage points of organic software growth, while automation grew 15% in the first half of 2025, and HashiCorp delivered a strong initial performance following its acquisition. OpenShift achieved $1.7 billion in annual recurring revenue (ARR), and Red Hat's virtualization pipeline grew by over $300 million in total bookings through the first three quarters. "OpenShift growing revenue more than 20% with ARR now at $1.7 billion. Automation grew 14%, with HashiCorp off to a strong start … We accelerated our Red Hat performance first quarter, second quarter by an incremental point, now growing about 14.5% … our pipeline in the second half is 3x last year across our entire automation portfolio with regards to HashiCorp." -- Jim Kavanaugh, Senior Vice President and Chief Financial Officer This sustained outperformance in hybrid cloud and automation positions IBM to deliver near-double-digit software revenue growth for FY2025 at constant currency, non-GAAP, driving a favorable long-term revenue mix shift and expanding recurring revenue base. IBM productivity transformation expands margins and financial flexibility IBM expanded its operating gross profit margin by 230 basis points, reflecting disciplined execution and productivity initiatives including embedding AI into workflows and optimizing the supply chain by moving distributed infrastructure manufacturing to a strategic partner. IBM exited 2024 with $3.5 billion in annual run rate savings and now expects to reach $4.5 billion by the end of 2025, fueling further margin expansion and cash flow conversion. "We are taking up the year on our productivity initiatives. We exited last year, we talked about $3.5 billion of productivity that we've been able to fundamentally drive out of this business … that's given us guidance and confidence to raise that to $4.5 billion. That flows to operating margin. We're taking our operating margins up from a half a point to now roughly a point … and then we're flowing that all the way down through the cash flow. High quality, sustainable cash flow generation." -- Jim Kavanaugh, Senior Vice President and Chief Financial Officer Escalating productivity-driven savings provide IBM with headroom for strategic M&A and ongoing innovation investment. AI portfolio and ecosystem drive differentiated growth at scale IBM's cumulative Gen AI book of business surpassed $7.5 billion since inception, with AI now surpassing 10% of consulting revenue at a more than three-point margin premium compared to non-AI work. Over 150 prebuilt agents and deep partnerships with Oracle, Amazon Web Services (AWS), Salesforce, and others are embedding Watson x solutions across customer workflows, while unique offerings like Code Assistant for z and the newly launched z17 mainframe further strengthen IBM's competitive position in scalable enterprise AI. "Our Gen AI book of business now stands at over $7.5 billion inception to date, with momentum accelerating quarter over quarter. We are seeing strong demand for our AI agents and assistants, REL AI, Granite Models, as well as an accelerating need for our consulting services to deploy AI. Just last week, IBM was recognized as an emerging leader in the first-ever Gartner emerging market quadrant for Gen AI consulting and implementation services." -- Arvind Krishna, Chairman, President, and Chief Executive Officer IBM's leadership in enterprise-scale AI and its partner ecosystem create a powerful flywheel effect, deepening client engagement and underpinning the company's long-term secular growth thesis in AI-powered automation and hybrid cloud environments. Looking Ahead For the full year, IBM reaffirmed constant currency revenue growth of 5% plus (non-GAAP) and raised free cash flow guidance above $13.5 billion. Management expects software to approach double-digit revenue growth, with Red Hat growth in the mid-teens and low-single-digit gains in transaction processing are expected as the z17 mainframe cycle accelerates. Operating pre-tax margin is now expected to expand by about one point for the full year, and IBM is comfortable with consensus expectations for revenue and profit. Where to invest $1,000 right now When our analyst team has a stock tip, it can pay to listen. After all, Stock Advisor's total average return is 1,037%* — a market-crushing outperformance compared to 182% for the S&P 500. They just revealed what they believe are the 10 best stocks for investors to buy right now, available when you join Stock Advisor. See the stocks » *Stock Advisor returns as of July 21, 2025 JesterAI is a Foolish AI, based on a variety of Large Language Models (LLMs) and proprietary Motley Fool systems. All articles published by JesterAI are reviewed by our editorial team, and The Motley Fool takes ultimate responsibility for the content of this article. JesterAI cannot own stocks and so it has no positions in any stocks mentioned. The Motley Fool has positions in and recommends Amazon, International Business Machines, and Oracle. The Motley Fool recommends Gartner. The Motley Fool has a disclosure policy.
Globe and Mail
7 hours ago
- Globe and Mail
Why C3.ai Stock Plummeted Today
Key Points stock sank today after the company announced that it had started looking for its next CEO. Tom Siebel founded and has been its CEO ever since, but he is stepping back from the role due to health reasons. Wedbush Morgan thinks that Siebel's exit from the CEO position increases the chances that will be acquired. 10 stocks we like better than › (NYSE: AI) stock got hit with big sell-offs today after the company announced a major leadership change. The company's share price ended the daily session down 10.8% announced today that CEO Tom Siebel would be stepping down and that the company was in the process of looking for its next chief executive. With today's pullback, the company's stock is down roughly 24.5% across 2025's trading. stock sank following news of Siebel's exit published a press release today announcing that it had begun looking for a successor for CEO Tom Siebel. Due to health reasons, Siebel will be stepping down. Siebel founded the company in 2009, but he was diagnosed with an autoimmune disease earlier this year and has been dealing with visual impairment issues that are causing him to step down from the company's head leadership role. What's next for Wedbush Morgan published new coverage on today and stated that Siebel stepping down from the CEO role was a net negative and that the leadership transition increases the chances that the company will be acquired within the next three to 12 months. On the other hand, Wedbush maintained an outperform rating on the stock and kept a one-year price target of $35 per share. The price target implies upside of roughly 35% compared to the stock's valuation at today's market close. Despite strong valuation tailwinds for many artificial intelligence (AI) stocks this year, has seen significant pullbacks across 2025's trading. Sales increased roughly 36% year over year to hit $108.7 million in the fourth quarter of the company's last fiscal year, which ended April 30, but performance for its shares has lagged behind other big AI names due to profitability concerns. Should you invest $1,000 in right now? Before you buy stock in consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $634,627!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,046,799!* Now, it's worth noting Stock Advisor's total average return is 1,037% — a market-crushing outperformance compared to 182% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. *Stock Advisor returns as of July 21, 2025
Globe and Mail
8 hours ago
- Globe and Mail
Companies focused on AI see surge this earnings season
Businesses focused on artificial intelligence are raking it in so far this earnings season. Those catering to actual people, less so. The AI spending surge is providing a big boost for semiconductor and software giants like Google parent Alphabet Inc. GOOGL-Q, while companies from airlines to restaurants and food manufacturers are struggling to navigate an erratic U.S. trade policy which is boosting costs, upending supply chains and hurting consumer confidence. Along with Alphabet, SK Hynix and India's Infosys exceeded market forecasts on Thursday and predicted brighter days to come, with Alphabet and SK Hynix both flagging plans to boost spending. SK supplies the world's most valuable company Nvidia Corp. NVDA-Q, the AI chipmaking giant that recently surpassed US$4-trillion in market value. By contrast, executives at many consumer names were less enthusiastic, from luxury bellwether LVMH, packaged food giant Nestle, to toymakers Hasbro and Mattel and airlines Southwest and American. They, along with automakers and giants like Coca-Cola, have indicated that some segments of the buying public have pulled in their spending as prices and interest rates remain high. The dichotomy is evident in IBM's results. Sales in Big Blue's 'AI book of business' grew 25 per cent in its most recent quarter to US$7.5-billion, while its software segment fell short of expectations and the company sounded cautious about how much its consulting segment might grow this year. The equity market has accentuated the positive. News that the U.S. had struck a trade deal with Japan and was closing in on a deal with the European Union ahead of an Aug 1. deadline boosted markets. The broad S&P 500 notched another record this week and the Eurostoxx was just a few points shy of that mark. Airlines are using AI to set ticket prices. Here's how you can avoid price manipulation when booking flights 'The market is getting friendly with a view that tariffs ending up higher than they have ever been for 100 years will not have a negative impact on economic growth, because we haven't seen any negative impact on economic growth so far,' said Van Luu, head of solutions strategy, fixed income and foreign exchange at Russell Investments. Whether companies continue to absorb that hit remains to be seen. So far, companies have reported over July 16-22 a combined full-year loss of as much as US$7.8-billion, with automotive, aerospace and pharmaceutical sectors hurt the most by tariffs, according to a Reuters tariff tracker. U.S. averages have been buoyed by the so-called Magnificent Seven, a group of tech giants that has benefited heavily from spending plans on artificial intelligence, and currently accounts for more than 30 per cent of the value of the S&P. 'AI is one of the strongest areas of growth for the economy, and the market mirrors the economy,' said Adam Sarhan, chief executive of 50 Park Investments. To be sure, the market's reaction may be in part because a larger-than-normal percentage of companies are clearing a lowered bar for estimates. Walmart unveils AI super agents roll-out to boost e-commerce growth At the beginning of April, the market expected 10.2 per cent year-over-year S&P earnings growth, but by July, that number had dropped to 5.8 per cent, according to LSEG data. With about 30 per cent of constituents reporting results, the blended earnings growth rate sits at 7.7 per cent. AI-focused businesses continued to print money in the most recent quarter. Nvidia supplier SK Hynix posted record quarterly profit, boosted by demand for artificial intelligence chips and customers stockpiling ahead of potential U.S. tariffs. Indian IT services provider Infosys raised the floor of its annual revenue forecast range to 1 per cent to 3 per cent, from flat to 3 per cent, matching analyst expectations. 'The tech community is going ahead full speed ahead ... and banks are in a very strong position now,' said Bill George, former chairman and CEO of Medtronic and executive education fellow at Harvard Business School. 'Other companies will struggle to get growth.' Consumer companies have been less upbeat. Nestle, the world's biggest packaged food maker, reported softer demand as it struggled to win thrifty shoppers to its big brands. U.S. airlines Southwest and American Airlines warned that Americans are travelling less, the latest signal that U.S. consumers are remaining cautious about their spending. Toymakers Mattel and Hasbro both said uncertainties around tariffs are acting as a headwind. Carmakers are among firms dealing with the most difficulty. The auto giants are resisting raising prices, eating the cost of tariffs that may cost them millions or billions of dollars. Levies on metals, copper and auto parts made it harder to navigate changing tariff policies. South Korea's Hyundai Motor on Thursday posted a 16-per-cent decline in second-quarter operating profit, saying U.S. tariffs cost it 828-billion won (US$606.5-million) in the second quarter, with a bigger hit expected in the current quarter. General Motors still expects a US$4-billion to US$5-billion hit to its bottom line this year. On Wednesday, Tesla chief executive Elon Musk said U.S. government cuts in support for electric-vehicle makers could lead to a 'few rough quarters,' as his firm reported its worst quarterly sales decline in over a decade.
