Santander has issued a stark warning to its customers ahead of the holiday season: three in four people could be at risk of falling victim to AI-generated fake adverts on social media. A recent survey reveals that 74% of Santander customers cannot reliably identify fraudulent online ads.
Confidence in spotting these scams is alarmingly low, with only 8% of respondents feeling “very confident” in their ability to detect AI-crafted fake adverts. More than half of those surveyed are worried that they or someone in their family could be scammed as a result.
This insecurity is impacting consumer behaviour, as two-thirds of respondents are actively choosing not to make purchases through social media platforms due to concerns about the legitimacy of adverts. To help combat this growing issue, Santander has developed 10 example AI-generated fake adverts, demonstrating just how realistic these scams can appear and providing guidance on how to spot them.
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The consequences of such fraud are significant: last year alone, £16.7 million was lost to purchase scams, with 67% originating from social media platforms. Among younger users, particularly Gen Z, more than half (51%) report encountering fake AI-generated adverts, and nearly one in six (14%) have lost money due to these scams.
As Christmas shopping intensifies, over half of shoppers say they are taking extra precautions in response to the rise of AI-driven fake social media adverts.
Chris Ainsley, Head of Fraud Risk Management at Santander UK, emphasized the scale and sophistication of this threat: “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. We want to make sure everyone knows what to look for so they can shop online with confidence, particularly as we head into one of the busiest shopping periods.”