AI: Are You Leaking Private Data in Search of Better Returns?

Personal Finance: While getting financial advice from AI is convenient, never share sensitive information such as bank details, passwords, OTPs, Aadhaar numbers, salary slips, or loan statements. Doing so could increase the risk of cyber fraud.

Use of AI in Personal Finance: Nowadays, AI tools have become a go-to source for instant answers and advice on any topic. People often turn to AI for questions regarding their personal finances—such as which mutual funds might be suitable or how to minimize tax liability. While AI responses can help improve financial literacy and allow for the comparison of various options, the rush to obtain personalized advice often leads people to share private information that should never be disclosed.

People are increasingly using AI and other tools for advice on matters like loans and retirement planning. While these tools are useful for explaining financial concepts and providing information, cybersecurity experts advise against sharing details about your personal income with them. Once your data leaves your device, you no longer have full control over it, creating a potential risk for cyber fraud.

Do Not Share Bank Details with AI

Many people believe that providing more information will result in better advice from AI, but that is not the case; this logic holds true only up to a certain point. If you are asking AI how to reduce your debt, there is absolutely no need to provide your bank account number, debit card details, or internet banking passwords. Such information serves no purpose in answering your query and should not be shared with anyone—not even with AI tools.

Keep Private Information Hidden from AI

Uploading salary slips or loan statements might seem convenient, but these documents often contain sensitive data like Aadhaar numbers, bank account details, and other personal information. If you need advice regarding a specific document, redact or hide the private information within it before sharing. Never share passwords or OTPs with AI tools.