Refundee in the Financial Times: How AI-Generated Scam Ads Are Evolving
Refundee spoke with the Financial Times and featured in their article ‘The age of the populist Financial scam’.
AI-generated ads have been prominent since advancements in AI technology became more popular, however there is a more recent shift used by fraudsters to exploit victims.
In the past, scammers used deepfake videos of celebrities such as, Money Saving Expert’s, Martin Lewis, to promote fake investments.
While these are still prominent, scammers’ tactics have noticeably shifted toward manufactured political conflict.
A recent AI-generated advert appeared to show Nigel Farage in a fabricated violent altercation with Bank of England Governor, Andrew Bailey, on BBC Question Time - engineered to lead to an investment scheme promoted by fraudsters.
Our co-founder, William Ayles, spoke to Siddharth Venkataramakrishnan at the Financial Times about why anti-elite framing has become the new trend for fraudsters promoting scams.
“Scam scripts change all the time. Some of them work and become the dominant type, others disappear in a month or two.”
He compared it to A/B testing - scammers regularly change and test tactics to see what works.
“They wouldn't be doing it now if it wasn’t working - and given its proliferation, it's clear that it must be working.”
How Do the Scams Actually Happen?
The video showed AI-generated footage of Nigel Farage accusing the Bank of England of keeping trading algorithms hidden from the public, choosing to favour the elites for favourable returns.
The video links to an investment company that is offering unrealistic, and guaranteed returns of up to £7,500 per month.
The ad pushes urgency in the investment, stating that investors can start with as little as £250, but they must do it within 24 hours to not miss out.
It is a common tactic we see within investment and cryptocurrency scams, where urgency, pressure, and starting small are tactics used to lure victims in.
Once the individual is lured in, the scammers have control.
A supposed “financial advisor” or “account manager” calls the individual claiming they have already made a profit on their initial investment, and they should capitalise on this by investing more.
The scammers are very persuasive and will usually show an investment platform that has been manufactured to show their investment making large returns.
Larger investments are made - £1,000 at first, then £5,000, then £10,000, and more - until the victim wants to withdraw their supposed profit.
Withdrawal Fees
When the victim wants to withdraw, this is when the scammers perform the final part of their trick. They state that the victim can release the funds; they just have to pay fees for reasons such as withdrawal fees, release fees, tax fees, anti-money laundering fees, etc. The list goes on, but the victim usually pays as they can see their money and think it will be released if they just make one more payment.
Unfortunately, once they pay, the scammers do not release the funds, and the victim usually realises they have been the victim of a scam.
Why Are Scammers Allowed to Advertise?
There has been a lot of publicity recently surrounding social media platforms' role in allowing fraudsters to advertise on their platforms.
Ofcom and organisations such as the Money Saving Expert, Which? and Refundee have called for further accountability on social media platforms for allowing the adverts to be shown.
The Financial Times highlighted the ease with which scammers can bypass platform security to attract victims – and even when the FCA issues warnings and reports on these adverts, they often remain live.
Ofcom is consulting on new proposed laws to hold social media platforms more accountable for scam advertisements. The consultation ends in October, and it is yet to be seen if new laws will help stop the sheer scale of fraud.
At Refundee, we believe that if adequate measures were in place to stop this, it would reduce the sheer scale of fraud losses and prevent victims from going through the long and stressful process of claiming from their banks or through specialist firms like Refundee.
Are AI-generated Ads the Future of Fraud?
One pattern runs through almost every scam case: the scam started on social media. 70% of Authorised Push Payment (APP) scams begin online, and right now those ads are going largely unpunished.
AI is becoming used more worldwide, and this presents opportunities for fraudsters to exploit victims through sophisticated and genuine-looking advertisements.
The days are gone when you could easily spot AI from the real thing. The advancements in technology are making the future of fraud a frightening space for unsuspecting victims.
Impersonation fraud has consistently involved scammers impersonating banks or law enforcement agencies; however, recent technological advancements are enabling fraudsters to create celebrity advertisements that appear more authentic than ever before.
Conclusion
AI technology is not leaving any time soon; if anything, it is only going to become more prominent in our daily lives. The technology presents opportunities for fraudsters to capitalise on this to exploit further victims.
The shift to political division is just another tactic used by fraudsters to trick more victims. The tactics may change, but the damage still remains the same; victims lose out, and social media platforms profit.
Until more is done to prevent scammers from advertising on these platforms, fraudsters will continue to A/B test scams that exploit more victims.
If you have been affected by an AI-generated scam, then you have options for recovery. You have a right to claim your money back under UK banking regulations, specifically the PSR’s Mandatory Reimbursement Model.
It’s a free process to claim yourself, or you can use a specialist firm such as Refundee.
We have recovered over £140 million for our clients so far, and we are authorised and regulated by the Financial Conduct Authority.
We work on a no-win, no-fee basis, so you only pay us if we are successful.
See if you’re eligible to recover your funds by starting your free eligibility check.
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.
Written by Thomas Himsworth, at Refundee.
Thomas specialises in banking regulations and APP fraud recovery, helping victims navigate claims against UK banks that have failed in their duty to protect customers. He has helped recover over £11 million for his clients.
