AI advances “have made scams more convincing” reports Barclays

Two-thirds of UK adults (67%) have noticed the rise of shopping scams in the last 12 months, while 68% believe these scams are becoming more sophisticated due to AI advances. Shoppers suggest that AI is making fake reviews (47%), fake retailer websites (45%) and scam ads/social posts (37%) harder to spot.

Despite Gen Z being the most likely age group to use AI to source deals (41%), research shows they are also most likely to avoid online shopping due to scam fears (34%): 12 percentage points higher than older age groups (22%). This suggests that AI is driving deal discovery among Gen Z. However, a ‘trust gap’ keeps many from completing the purchase.

Gen Z ‘swiping left’ 

Barclays’ proprietary data shows that seven in every ten (67%) reports of romance scams originated on dating and social media sites last year. At the same time, though, a similar trend of online avoidance is emerging among Gen Z singles searching for a romantic partner. Half (48%) say that AI scam concerns have changed how they date online. That’s almost double the 25% national average.

Two-fifths are not confident they could spot the use of voice cloning technology (44%) or fake images and videos (41%): tools often used  by scammers on these platforms to ‘catfish’ convincingly or conceal their identity. Half (53%) are also concerned about scammers using their voice or image to impersonate them, rising to six in every ten for Gen Z (62%).

As a result, in an apparent reversal of a trend towards app dating, 56% of single Gen Zs say they’re focusing on meeting a partner in real life rather than via online dating. That’s significantly higher than the 42% average across generations. 

Support for scam intervention 

The majority of UK adults (84%) questioned believe tech companies should do more to prevent scams from taking place on their platforms. Almost half (45%) would feel comfortable with tech companies and banks sharing personal data with each other if it was done to prevent them from falling victim to a scam.

Four in every ten (38%) would like to see online dating platforms introducing a warning if a ‘match’ asks for money, while 30% support clear labels and warnings about AI-generated content.

Paul Davis, head of economic crime at Barclays, stated: “AI advances are fuelling scam fears. Consumers of all ages are losing confidence in their ability to tell real from fake. My advice to everyone, no matter how ‘scam smart’ they think they are, is to take some time, complete some research and make use of resources like the Barclays’ fraud and scams website to check if something has the hallmarks of a scam. If something seems too good to be true, it probably is, particularly so in light of the latest developments in AI.”

Davis added: “The protection of our customers’ money and data is our highest priority and we’re here to help. If you think a payment you’ve made is fraudulent, or you’ve been scammed and lost money, report it to your bank as soon as possible.” 

Spotting red flags 

Top tips for spotting red flags and staying safe online include the following: 

*Take your time

Scammers create fake urgency to make you panic. Sleep on important decisions, particularly so when it comes to moving money 

*Stay on the platform

If you feel pressured to move communications over to another channel, stop and reassess 

*Shop safely online

When shopping online, be cautious if asked to pay via bank transfer, gift card or crypto. These can offer less protection and are indicators that you’re not dealing with a genuine seller 

*Know when to stop

If a discussion on an online dating platform moves towards money then this is a time to stop 

*Seek a second opinion

If something doesn’t feel right – and notably so if money’s involved – talk it through with a trusted friend or family member

*Further information is available online at https://home.barclays