Using AI for Financial Advice? Experts Warn Against Sharing Your Bank Statements Without Doing This

Artificial intelligence is rapidly becoming the new financial adviser for millions of people struggling with rising costs, debt and shrinking savings. From budgeting help to debt repayment plans, AI chatbots are now offering instant financial guidance at no cost.

But cybersecurity and privacy experts are warning that uploading bank statements, tax returns or credit card bills into AI systems could expose users to serious fraud and identity theft risks.

Platforms such as ChatGPT, Microsoft Copilot, Google Gemini and Claude are increasingly being used by people seeking help with managing monthly expenses and improving cash flow. However, experts say many users do not realise how much sensitive information is contained inside everyday financial documents.

Social Media Advice Sparked Fresh Concerns

The debate intensified after author and podcaster Mel Robbins encouraged followers on Instagram to use AI tools for money advice.

In a suggested prompt shared online, Robbins advised users to upload documents such as bank statements, debt records and income information so AI systems could provide personalised financial guidance.

The original prompt did not include warnings about removing personal details before uploading files. According to reporting by CNN, critics quickly raised concerns in the comments section, warning that sensitive financial information could become exposed if shared without protection.

Robbins later updated her suggested prompt. The revised version instructed users to remove personal information before uploading any documents. That change produced noticeably different responses from AI systems. CNN reported that updated prompts triggered privacy warnings reminding users not to share names, account numbers, addresses or identifying details.

Why Experts Are Raising Alarm

Cybersecurity specialist Rachel Tobac warned that uploading unredacted financial documents carries major risks if systems are hacked, breached or accidentally exposed. Speaking to CNN, Tobac said leaked financial records could allow criminals to commit identity theft, access bank accounts or build highly convincing phishing scams.

A bank statement may reveal far more than spending habits. It can contain account numbers, salaries, employer details, home addresses, phone numbers and transaction histories. Tobac explained that scammers could use leaked purchase information to create fake messages that appear authentic because they include real merchants, dates and payment amounts.

Professor Gang Wang also warned that AI systems may retain information in ways users do not fully understand. Speaking to CNN, Wang said some AI models learn from user interactions unless individuals actively disable training permissions. He noted that users should never assume private information disappears after a conversation ends.

Why So Many People Trust AI With Their Finances

Financial advice has become expensive for many households. Professional consultations often cost hundreds of pounds or dollars, placing them out of reach for people already facing financial stress. AI tools, by comparison, appear simple, fast and available around the clock.

That convenience is driving more people to treat chatbots like trusted advisers. Tobac warned that many users now place the same level of trust in AI systems as they do in regulated financial professionals. However, AI companies are not legally required to act in a user's best financial interests in the same way licensed advisers are. Experts say that distinction matters.

How Users Can Protect Themselves

Privacy specialists say AI tools can still be useful for general budgeting help if users remain cautious. Experts recommend avoiding document uploads whenever possible. Instead of sharing original bank statements, users should provide broad spending categories and estimated monthly costs. For example, users can safely list approximate spending on housing, transport, groceries or debt repayments without revealing account details.

Experts also advise users to review privacy and data retention policies carefully before using any AI service. Policies can change regularly and may differ between free and paid versions. Professor Wang also advised users to disable data training permissions where possible and remove all identifying information before sharing financial details. Tobac urged users to trust their instincts if something feels unsafe or unnecessary.