Critical ChatGPT Vulnerability Targeting Financial Institutions Identified, Strategic Cloud Partnership Announced Between Finastra and IBM, Affirm's Expanded Credit Reporting, & a Data Breach at Western Alliance Bank Affects Thousands of Customers

Banking on Disruption Daily

A critical vulnerability in ChatGPT has been identified, specifically targeting financial institutions, raising significant concerns about the security of sensitive consumer data. This revelation is accompanied by the announcement of a strategic cloud partnership between Finastra and IBM, which aims to enhance cloud-based lending solutions and facilitate digital transformation within the financial sector. Additionally, Affirm is set to expand its credit reporting practices, integrating payment plan data into the credit scoring system, a move that may influence future credit assessments. Moreover, a data breach at Western Alliance Bank has compromised the personal information of nearly 22,000 customers, stemming from a vulnerability in third-party vendor software. These developments underscore the pressing challenges and opportunities facing the financial industry in an increasingly digital landscape.

Takeaways:

• A critical vulnerability in ChatGPT has been identified, posing risks to financial institutions.
• Finastra and IBM have announced a strategic partnership to enhance cloud-based lending solutions.
• Affirm will expand its credit reporting to include various payment plans starting April 1st.
• A significant data breach at Western Alliance Bank has compromised sensitive information of thousands of customers.
• Cybersecurity researchers have documented over 10,000 exploit attempts targeting US financial institutions due to the ChatGPT vulnerability.
• The White House faces opposition regarding funding cuts to the Community Development Financial Institutions Fund, crucial for supporting numerous individuals.

Companies mentioned in this episode:

• Finastra
• IBM
• Western Alliance Bank
• Experian
• FICO
• Verity