Banks Warn of AI Shopping Agents’ Fraud and Privacy Risks

Banks including NatWest and Bank of America have warned that the growing use of artificial intelligence (AI) agents for online shopping could increase the risk of scams, fraud and data-privacy breaches. In a report released on Tuesday, the banks outlined principles for developing agentic commerce, highlighting concerns that the technology is advancing faster than industry standards and consumer protections.

Technology companies such as OpenAI, Anthropic, Google and Meta are increasingly promoting AI chatbots as shopping tools, enabling consumers to search for products, make selections and complete purchases through AI agents. The trend is gaining momentum, with UK retailer John Lewis reporting that searches originating from AI agents rose to 2.5% in September from 0.3% a year earlier. However, the banks noted that consumers remain uncertain about whether AI agents will act in their best interests, with concerns over incorrect purchases, overspending and exposure to fraud.

The banking group, which also includes ING, ASB Bank, Capital One and Commonwealth Bank of Australia, plans to discuss proposed safeguards with policymakers. These include mandatory disclosure when AI agents are involved in transactions, greater transparency in AI-driven decisions and stronger customer-data protection. The report also warned against AI agents directly entering customers’ card details on websites or directing them towards payment methods with weaker protections. The banks further called for consumer and merchant choice in AI-powered services and greater interoperability between different systems.

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