A Pennsylvania-based bank is disclosing a data breach caused by artificial intelligence (AI) software.
According to a reservation and the US Securities and Exchange Commission (SEC), Community Bank suffered a breach earlier this month that involved “customer names, social security numbers and dates of birth.”
The filing said the data breach occurred internally after “unauthorized software” was used at the bank to compromise customer privacy.
“Once the bank became aware, it quickly took steps to secure the incident and launched an internal investigation with the help of external cyber security consultants.
Regarding data breaches in the financial sector, Community Bank says,
“The incident did not involve disrupting the Bank’s operations, customers’ access to accounts or services, payment methods, or information technology equipment; however, due to the volume and impact of the non-public information, on May 7, 2026, the Company determined that the incident was necessary.”
The SEC filing comes between a report and telecommunications giant Verizon says the use of unauthorized AI software on corporate devices is increasing and increasing cybersecurity threats in many workplaces.
“Shadow AI, referring to employees using unauthorized AI tools in the workplace, is now the third most common area of data leakage. The frequency of use of AI tools by employees has increased from 15% to 45% of employees in one year, reflecting the increased risk of data breaches associated with unauthorized platforms.”
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