Community Bank Exposed Customer Data Through Unauthorized AI App Use

Community Bank disclosed a security incident after customer information was exposed through use of an unauthorized AI-based software application, according to a filing with the U.S. Securities and Exchange Commission. The bank said the compromised non-public data included customer names, dates of birth, and Social Security numbers, and that it reported the matter because of the volume and sensitivity of the information involved. Reporting indicates the lapse may have occurred when customer data was uploaded to an online AI chatbot or similar service, though the bank has not identified the application or explained the exact mechanism.

The bank said the incident did not disrupt operations or prevent customers from accessing accounts or payment services, but it is still assessing the scope of affected data and notifying impacted individuals as required by law. Community Bank is also communicating with banking and financial regulators and pursuing remediation to prevent a recurrence. The number of affected customers remains undisclosed.