Law360 Article on Agentic Banking Features Insight from Attorney John Lande

When it comes to AI agents, banks are taking steps to limit their access to customer accounts among concerns of security and fraud risks. The growing use of these tools in transactions are also testing the limits of existing consumer protection laws.

Attorney John Lande, chair of the firm's Cybersecurity, Data Breach, & Privacy practice group, was recently featured in a Law360 article on the topic of agentic banking, providing commentary on the protections provided for consumers, including the unauthorized use of credit cards when access is handed off to a third-party, such as an AI agent. The gap between how consumers think they are protected and what federal law actually provides under the Electronic Fund Transfer Act (Reg E) could come as a shock to consumers as AI agents start transacting more on consumers' behalf.

"I think this will come as a great surprise to people," Lande is quoted. "In my experience, consumers view the liability protection in Reg E as protecting them from things they didn't intend to do, but that is not exactly what Reg E does."

Lande goes on to comment on the growing friction between banks and customers as more consumers start tasking AI agents with their personal finances. Even if banks prevail in disputes over rogue transfers, they could still face costly litigation and reputational damage.

"People generally trust banks quite a bit, so when something like this happens, they have just a general feeling that the bank is responsible, when really, legally, they probably aren't," Lande said.

Read the complete article, including what Lande and other cybersecurity attorneys think about the rising stakes for banks here: https://www.law360.com/articles/2544629/print?section=banking