Curated News
By: NewsRamp Editorial Staff
February 24, 2026
AI Safety Report: 97% of Treasury's AI Rules Can't Prevent Breaches
TLDR
- VectorCertain's AI governance platform offers a 10-100x cost advantage by preventing breaches before they occur, giving financial institutions a significant economic edge over competitors relying on detection.
- VectorCertain's analysis reveals that 97% of the Treasury's AI framework uses detect-and-respond controls, while their prevention architecture completes governance evaluations in 0.27 milliseconds before actions execute.
- Preventing AI governance failures before they happen reduces financial harm to customers, protects personal data, and builds trust in financial systems for a more secure future.
- VectorCertain's AI governance platform can evaluate and authorize AI actions in just 0.27 milliseconds, faster than the blink of an eye, preventing unauthorized actions before they occur.
Impact - Why it Matters
This news reveals a systemic flaw in the primary regulatory framework designed to govern AI in the U.S. financial sector. The finding that 97% of the Treasury's AI risk controls are reactive, not preventive, means that even perfectly compliant banks and financial institutions remain vulnerable to AI-driven fraud, data breaches, and autonomous agent malfunctions that can execute in milliseconds. For consumers, this gap translates to direct risks: potential for unauthorized transactions, loss of personal financial data, and systemic instability that could affect account security and market confidence. For the industry, adhering to the current framework incurs exponentially higher costs—up to 100 times more—compared to investing in prevention, as demonstrated by the 1:10:100 economic rule. This isn't just a technical oversight; it's a multi-billion-dollar liability that leaves the financial system exposed to the very AI risks regulators sought to mitigate, demanding an urgent architectural shift in how AI governance is implemented.
Summary
VectorCertain LLC has released a groundbreaking analysis revealing a critical vulnerability in the U.S. Treasury Department's Financial Services AI Risk Management Framework (FS AI RMF). The company's AI Executive Order Group (AIEOG) Conformance Suite, an eight-document, 74,000-word analysis, found that 97% of the framework's 230 AI control objectives operate solely in a detect-and-respond mode, offering virtually zero capability to prevent unauthorized AI actions before they occur. This "Prevention Gap" is particularly alarming as autonomous AI agents now vastly outnumber human employees in enterprises, executing actions in milliseconds without human review, rendering the human-in-the-loop safety mechanism obsolete.
The economic implications are staggering, defined by the "1:10:100 rule." For every dollar spent preventing an AI governance failure, organizations spend ten dollars detecting it and a hundred dollars remediating it. Citing IBM's 2025 Cost of a Data Breach Report, the analysis shows the average U.S. data breach costs a record $10.22 million, with detection and escalation alone averaging $1.47 million per incident. In financial services, breaches cost $5.56–$6.08 million on average, and 38% of customers would switch institutions after a breach. The analysis argues that the FS AI RMF, while comprehensive, locks institutions into this costly detect-and-respond cycle because it was designed for an era of human-supervised AI assistance, not today's reality of autonomous agents.
VectorCertain, founded by CEO Joseph P. Conroy, proposes the "Prevention Paradigm" as the solution—an architectural shift where governance evaluates and authorizes or inhibits every AI action before execution. The company's technology completes this evaluation in 0.27 milliseconds, faster than an agent can act, and its platform has been validated through 8,884 tests with zero failures. This approach is framed not as a replacement for the FS AI RMF but as a necessary upgrade to make its control objectives enforceable at machine speed. The release is part of a week-long series that will further explore the Legacy Hardware Crisis and the Autonomous Agent Threat Surface, building toward the unveiling of VectorCertain's unified platform. For more context on the initial findings, refer to the Flagship Announcement.
Source Statement
This curated news summary relied on content disributed by Newsworthy.ai. Read the original source here, AI Safety Report: 97% of Treasury's AI Rules Can't Prevent Breaches
