A bank in Pennsylvania discloses a data breach caused by artificial intelligence (AI) software.
According to A Deposit With the U.S. Securities and Exchange Commission (SEC), Community Bank suffered a data breach earlier this month that affected “customer names, Social Security numbers, and dates of birth.”
The data breach occurred internally after an “unauthorized AI-based software application” was used at the bank to handle confidential customer information, the filing says.
“Upon discovery, the bank immediately took steps to secure the information in question and initiated an internal investigation with the assistance of external cybersecurity consultants. The investigation into the incident, including the scope and root cause, remains ongoing.”
Regarding the impact of the data breach on the financial institution, the Community Bank says:
“The incident did not involve a disruption of the bank’s operations, customers’ access to accounts or services, payment systems, or underlying IT infrastructure; however, given the volume of non-public information involved and its sensitive nature, on May 7, 2026, the Company determined that the event was material.”
The SEC filing comes amid a report Telecom giant Verizon said the use of unauthorized AI applications on corporate devices is rapidly increasing and increases cybersecurity risks in many workplaces.
“Shadow AI, which refers to employees using unapproved AI tools at work, is the third most common activity related to harmless data leaks. Frequent use of AI tools by employees has risen from 15% to 45% of employees in one year, highlighting the high risk of data leaks associated with unapproved platforms.”
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