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Unauthorized AI Breached Bank Data

By Kim S. Nash

 

Hello. An "unauthorized" AI application exposed sensitive customer data at a regional U.S. bank. 

Community Bank, a unit of CB Financial Services in Carmichaels, Pa., said the extent of the breach makes the incident material. Customer names, Social Security numbers and dates of birth are among the compromised information, the bank said in a filing with the Securities and Exchange Commission.

"The incident did not involve a disruption to the Bank's operations, customer access to accounts or services, payment systems, or core information technology infrastructure; however, due to the volume and sensitive nature of the non-public information at issue, on May 7, 2026, the Company determined the event to be material," the filing said. Community Bank operates in Pennsylvania, Ohio and West Virginia.

The bank didn't provide details about how the breach happened or the AI software in question, saying an investigation is underway. 

More news below. 

 

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More Cyber News

PHOTO: DAVID PAUL MORRIS/BLOOMBERG

Foxconn confirms cyberattack. Tech maker Foxconn is working to restore operations at several North American factories and other sites after a cyberattack, the company said Tuesday in a notice to the Taiwan Stock Exchange.

  • Foxconn, formally known as Hon Hai Precision Industry, last week said some downed sites, including a facility that makes computer servers in Mount Pleasant, Wisc., were experiencing "a technical issue." Some workers there said operations continue to be idle. (TMJ4)

Anthropic's Mythos is helping find cybersecurity holes across the U.S. government but the Defense Department still plans to strip the company's products from its tech systems, the Pentagon's chief technology officer said Tuesday at a conference in Washington, D.C. (Reuters)

  • Deutsche Telekom, financial services giant BBVA and other critical-infrastructure firms in Europe are using OpenAI's latest AI models to hunt for cyber vulnerabilities. (Reuters)

New money: San Francisco-based Exaforce said it raised $125 million in Series B funding from HarbourVest, Peak XV, Mayfield, Khosla Ventures and Seligman Ventures. Exaforce plans to invest in further developing its AI-based tools for security operations centers and building business in Japan and Europe. (SecurityWeek)

41%

Percentage of 450 security professionals who cited "business disruption" as the main reason they don't fix high-risk bugs, according to research from penetration testing company Cobalt Labs and cyber risk researcher Cyentia Institute. 

Other reasons: 

Compensating controls are in place: 28%

High cost and effort needed to remediate: 18%

System is due to be decommissioned: 7%

Low likelihood of exploit: 5%

 

About Us

The WSJ Pro Cybersecurity team is Deputy Bureau Chief Kim S. Nash and reporters Angus Loten and James Rundle. Follow us on X @WSJCyber. Reach the team by replying to any newsletter you receive or by emailing Kim at kim.nash@wsj.com.

 
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