Scammers Are Using AI to Target Victims: What You Need to Know
The rapid rise of artificial intelligence (AI) is transforming how people search for information, make decisions, and manage everyday tasks.
While AI tools may be making life more efficient, it is also creating new opportunities for fraudsters to exploit their victims.
UK Finance have recognised the problem stating that “financial crime is evolving faster than traditional controls can manage, driven by technology, consumer behaviour, and global trends. Fraud remains one of the UK’s most significant threats, with losses continuing to rise.”
As AI becomes more advanced and widely used, fraudsters are increasingly exploiting this technology to target victims in more sophisticated ways.
How Scammers Are Using AI To Trick Victims
One of the most concerning developments is the use of AI-generated content, including deepfake videos and voice cloning.
In recent cases, fraudsters have used AI to create realistic videos of well-known public figures appearing to promote investment opportunities or financial products.
High-profile individuals such as Martin Lewis, Keir Starmer and Elon Musk have all been impersonated in scam advertisements.
These videos can look highly convincing, making it difficult for individuals to distinguish between real and fake content.
How Do AI Scams Work?
AI scams typically follow a similar pattern:
Fraudsters create fake videos or audio using AI (often called deepfakes)
The content shows a trusted public figure endorsing an investment or product, usually through social media
Victims are directed to a website or platform that appears legitimate
Once funds are deposited, victims are unable to withdraw their money and sometimes asked for further fees
These scams are particularly effective because they exploit trust in well-known individuals.
For example, many people trust the financial guidance associated with Martin Lewis. However, he has repeatedly confirmed that he does not endorse investment advertisements, and any such promotions are likely fraudulent.
How to Protect Yourself from AI Scams
Question the Source
Ask yourself: Why would this individual be promoting this product or investment?
For example, it is highly unlikely that a political figure such as Keir Starmer would promote an unregulated cryptocurrency platform.
Any company offering financial or investment services in the UK should be authorised by the Financial Conduct Authority (FCA). If they are not listed, this is a major red flag.
Be Cautious of “Too Good to Be True” Offers
High or guaranteed returns are a common tactic used by scammers.
Verify Independently
Do not rely on videos or advertisements alone. Check official websites and trusted sources.
Report Suspicious Activity
If you believe you have encountered a scam, you can report it through the UK’s Report Fraud service.
Is AI the Future of Fraud?
Fraudsters have capitalised on the ever-growing nature of the digital world and lured victims in by the realistic capabilities of AI. With artificial intelligence growing at an exponential rate, it will create further issues for victims, banks, and regulatory bodies to identify and stop the surge in AI-driven fraud.
According to UK Finance in its latest report, Financial Crime in 2026: Key Trends Shaping the UK’s Horizon, fraud continues to represent one of the most significant financial crime risks in the UK with AI industrialising deception: enabling criminals to scale attacks and sharpen targeting in real time.
This underlines the growing challenge for banks and regulators in keeping pace with increasingly sophisticated fraud tactics driven by rapid technological advancements. As these threats continue to evolve, proactive adaptation and stronger preventative measures will be essential to effectively protect consumers.
Can You Recover Money from an AI Scam?
Refundee continuously monitors emerging scam trends and developments in the digital landscape to ensure we are best positioned to support victims in recovering funds from fraud.
To date, we have recovered over £120 million for fraud victims in the UK. If you have lost money to a scam, you can complete out our claim form for a free assessment.
We work on a no-win, no-fee basis, so you only pay us if we are successful.
Final Thoughts:
AI is transforming both legitimate industries and the methods used by fraudsters.
As technology continues to evolve, scams will become more sophisticated and harder to detect. Staying informed, questioning what you see online, and carrying out independent checks are essential steps in protecting yourself.
More about Refundee
Here are the technical bits:
Refundee Ltd is a claims management company authorised and regulated by the Financial Conduct Authority in respect of regulated claims management activity FRN: 937096.
Registered with the Information Commissioner's Office; registration number: A8986071.
Registered office address: Refundee, 3rd Floor, 86-90 Paul Street, London, EC2A 4NE.
Registered as a company in England & Wales; number: 12855931.
Frequently Asked Questions (FAQs)
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AI scams typically follow a similar pattern:
Fraudsters create fake videos or audio using AI (often called deepfakes)
The content shows a trusted public figure endorsing an investment or product, usually through social media
Victims are directed to a website or platform that appears legitimate
Once funds are deposited, victims are unable to withdraw their money
-
Here are some checks you can do:
Question the Source
Ask yourself: Why would this individual be promoting this product or investment?
For example, it is highly unlikely that a political figure such as Keir Starmer would promote an unregulated cryptocurrency platform.Check the FCA Register
Any company offering financial or investment services in the UK should be authorised by the Financial Conduct Authority (FCA).
If they are not listed, this is a major red flag.Be Cautious of “Too Good to Be True” Offers
High or guaranteed returns are a common tactic used by scammers.
Verify Independently
Do not rely on videos or advertisements alone. Check official websites and trusted sources.
Report Suspicious Activity
If you believe you have encountered a scam, you can report it through the UK’s Report Fraud service.
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Refundee can help you recover your funds through UK banking regulations, we have recovered over £120 million for our clients so far and we have experience in helping victims recover from AI fraud.
You can start your claim here for a free assessment. We work on a no win, no fee basis so you only pay if we are successful. -
Recovery cases typically take around 6–12 months, but timelines vary based on the bank and complexity of the situation.
