Commonwealth Bank Probes $1 Billion in Loans Linked to AI-Generated Documents

Sydney, Friday, 27 February 2026.
As of February 27, 2026, the Commonwealth Bank of Australia (CBA) is scrutinizing approximately A$1 billion in home loans potentially secured using documents forged by artificial intelligence. This investigation, reportedly self-reported to police on February 23, highlights a systemic vulnerability where generative AI is being weaponized to defeat standard “Know Your Customer” protocols. The financial crimes regulator, AUSTRAC, has joined the probe to determine if these fraudulent loans facilitated money laundering. This case represents a significant escalation in financial crime, suggesting that the ease of creating sophisticated synthetic identities may soon render current digital verification methods obsolete, forcing global institutions to revert to stricter biometric or physical authentication standards.