Sanders and Schiff Warn AI Agents Are Breaching Bank Accounts, Call for Immediate Halt

On Thursday, Senators Bernie Sanders and Adam Schiff expressed concerns about out-of-control AI agents accessing bank accounts and potentially threatening financial security, urging urgent action to curb the risks.

Banks Race to Block Unauthorized AI Agents

According to Axios, major U.S. banks including Morgan Stanley, JPMorgan Chase, Bank of America, and Citigroup are restricting third-party AI agents over concerns that these tools could access customer accounts and execute actions beyond user instructions.

Some agents have reportedly used customers' login credentials to access accounts, potentially violating banks' terms of service. Executives also worry that agents may attempt to execute trades or contact customer service systems without explicit authorization.

The risks could be especially severe when agents are able to transfer funds or make purchases. Banks are working to distinguish between legitimate, user-driven activity and potentially out-of-control behavior.

A JPMorgan spokesperson advised customers in a statement to the outlet not to share their usernames and passwords. A Morgan Stanley spokesperson said the bank has not observed instances of "out-of-control AI agents accessing our platform."

Several banks are exploring read-only access permissions, which would allow AI agents to analyze financial information without transferring funds or initiating transactions.

Morgan Stanley, JPMorgan Chase, Bank of America, and Citigroup did not immediately respond to requests for comment.

Sanders Demands AI Pause, Schiff Calls for Guardrails

In response to the report, Sanders warned that the technology could put consumers and the broader financial system at risk.

"This is insane. We cannot allow AI agents to enter your bank account without your authorization and act independently," Sanders wrote on X.

He added that unconstrained AI could endanger "the entire global financial system" and called for an immediate halt, stating, "Pause AI now!"

This is insane. We cannot allow AI agents to enter your bank account without your authorization and act independently. But this is exactly what is happening right now.

If left unchecked, AI could endanger the entire global financial system—including your bank account.

Pause AI now!

— Senator Bernie Sanders, October 22, 2026

Schiff similarly warned that the risks from out-of-control agents extend beyond banking to utilities, healthcare systems, and other critical infrastructure.

"It's time for mandatory industry-wide AI guardrails," Schiff wrote on X, urging Congress to act before risks escalate.

The threat of out-of-control AI agents taking unauthorized actions inside our financial institutions, utilities, health systems, and more is no longer hypothetical.

If Congress doesn't act quickly, these already significant risks will only get worse.

It's time to pass...

— Senator Adam Schiff, October 22, 2026

Banks Under Pressure to Balance AI Benefits with Security

Financial institutions face growing pressure to meet customer demand for AI agents that manage daily tasks while also preventing unauthorized transactions and data breaches.

Although banks are investing in cybersecurity measures and preparing contingency plans for potential incidents, the rapid evolution of AI is complicating their efforts.