Rising threat of AI scams costs Brits £1bn in the first three months of the year

• Fraudsters scam Brits out of £1bn in the first quarter of 2024
• Top three scamming tactics this year: Phishing emails or messages (11%), Contact from unknown individuals (11%) and Fake online shops (8%)
• Almost half of Brits feel more at risk of scams with the introduction of AI-based fraud

There are fresh warnings today about the growing threat Artificial Intelligence (AI) poses to us in the hands of online scammers.

From deep fakes to ChatGPT phishing, warnings over the sophisticated tactics used to part us with our cash are being raised, as new research shows that Brits have already lost more than £1 billion from their bank accounts since the start of the year.

The research, part of an online safety campaign from savings marketplace Raisin, revealed that almost half of us (48%) feel more at risk of scams as fraudsters become increasingly sophisticated in using technological advances to overcome the measures financial institutions put in place to protect us.

Conventional scams are difficult enough to spot, but AI-based scams are even more dangerous because they are harder to detect. Deepfakes allow criminals to create seemingly legitimate audio and video, often featuring someone famous. ChatGPT phishing gives the text the tone and coherence of legitimate sources. Voice cloning replicates somebody’s tone and language to trick someone else into having a genuine phone conversation. Verification fraud can be used to subvert standard security checks.

With these tools ready to use at the scammer’s will, a surprising three in five (61%) UK adults are confident they can tell the difference between human and AI-generated communication.

Discussing the research, finance expert and co-founder of Raisin UK, Kevin Mountford, commented: “It is crucial to highlight the severity of online fraud and the potential harm it can cause individuals. Falling prey to online fraud can lead to significant financial loss, erode trust in online platforms, and even compromise personal information. Therefore, we must remain vigilant, practice safe online habits, and report suspicious activity to relevant authorities. Preventive measures play a vital role in protecting yourself from the dangers of online fraud.”

To assist consumers in staying aware of the dangers sophisticated AI financial scams pose, Raisin has created a free downloadable stay-safe guide.

Despite us losing on average £83.69 as a result of scams in the last year, with them costing men (£93.48) more than women (£70.22), fewer than a third (30%) of us report the incident to the bank, according to Raisin’s research, with only a quarter notifying the relevant online sales platform, with more than one in four (27%) not reporting the scam at all. This may be due to an emotional cost, with us most likely to feel very angry (28%) and anxious (27%), while 23% develop trust issues.