URGENT UPDATE: Santander UK has just alerted customers that a staggering 74% could face losing their bank accounts due to deceptive AI-generated social media advertisements. As the Christmas shopping season approaches, the bank warns that many consumers are at risk of falling victim to these sophisticated scams.
A recent study reveals that only 8% of consumers feel “very confident” in their ability to identify fake ads, while more than half express deep concerns that they or their family members could be scammed. In light of this alarming trend, two-thirds of individuals are choosing to avoid making purchases through social media platforms entirely.
To illustrate the dangers, Santander has created 10 fake AI social media adverts, demonstrating how realistic these fraudulent ads can appear. Last year, fraudsters stole a shocking £16.7 million through purchase scams, with a staggering 67% of these incidents originating from social media.
Among Gen Z users, over half, or 51%, reported encountering a fake AI-generated advert, and alarmingly, nearly 14% admitted to losing money due to such scams. With the holiday shopping season ramping up, more than half of respondents are exercising heightened vigilance against AI-generated fake advertisements.
Chris Ainsley, Head of Fraud Risk Management at Santander UK, stated,
“Generative AI has opened the floodgates to a new wave of highly convincing scams that can be almost impossible to spot at first glance. As fraudsters become more sophisticated, it’s vital that people stay alert and think twice before engaging with adverts or offers that appear too good to be true.”
As the Christmas shopping frenzy begins, it’s crucial for consumers to remain informed and cautious. Experts urge shoppers to stay vigilant and to check for tell-tale signs of scams before making any online purchases.
The urgency of this warning cannot be overstated, as the potential for financial loss looms large. Stay alert and share this critical information with family and friends to help protect against the rise of fake advertisements this holiday season.
