The scale and sophistication of fraudulent advertising and AI-generated scams on social media are growing rapidly, making it harder than ever for people to know what’s real.

New research from Visa reveals that people who mistake fake AI-generated content for real are nearly nine times more likely to be tricked by scammers than those who don’t (70% vs. 8%).

This highlights how digital misinformation directly increases vulnerability and underscores the importance of collective action to protect consumers and restore trust in digital platforms.

In the UK, Visa found that people who are affected by online scams lose an average of £124.50 per incident, costing the UK economy an estimated £356.2 million annually.

The impact goes far beyond financial loss, causing emotional distress, increased anxiety and reduced productivity. On average, victims of online scams spend around six and a half days resolving the issue – nearly a third (30%) of the working month.

The way people engage with content online plays a major role. Those who share a post without checking its accuracy first, are twice as likely to be targeted and impacted by online scams compared to those who tend to take a moment to verify it first (43% vs. 22%). Everyday online habits – such as skimming headlines, resharing without verifying and trusting AI-generated content – are creating new vulnerabilities that scammers are quick to exploit:

• 44% have believed content was genuine only to later discover it was an AI-generated fake
• Almost a third (32%) rarely read beyond a headline before forming an opinion
• Almost a fifth (19%) have reshared a post without checking its accuracy

As online scams grow more sophisticated and widespread, this shift in consumer behaviour is having a tangible impact on the wider economy. An estimated 9 million people have changed how they shop online after being scammed and over a third (35%) of people targeted by scams say they now avoid shopping with smaller or unfamiliar brands.

This is having a particularly significant impact on independent businesses, which make up 99.8% of the UK’s business population and depend heavily on consumer confidence to survive and grow.

Visa is stepping up the fight against social media scams – combining decades of experience with cutting-edge technology and working closely with banks, retailers and digital platforms to restore trust in online commerce.

AI has long been central to Visa’s approach to fraud prevention. For over 30 years, the company has used AI powered tools to help keep payments secure and stay ahead of evolving threats. In the last five years alone, Visa has invested $12 billion in technology, including building smart, AI-powered systems that detect suspicious behaviour in real time and stop scams before they reach people.

Awareness is as critical as technology. With two in five (41%) people believing AI will make scams harder to spot on social media, Visa is taking proactive steps to close that gap. Tackling fraud requires a united front, and Visa is committed to collaborating across the ecosystem to set new standards for consumer protection.

By working closely with banks, retailers and platforms to ensure consumers have the right advice at their fingertips, Visa is helping people recognise an AI-generated scam, understand how they work, and stay safe in an increasingly AI-driven digital world. Because the more informed people are, the harder it is for scammers to succeed.

Visa is calling on all stakeholders – platforms, banks, retailers and policymakers – to work together to raise the bar for digital trust and consumer protection.

David Capezza, Interim Head of Risk, Visa Europe comments: “AI is transforming how we live and work – from how we shop online to how we seek out news and information. But it also brings new risks, with scammers using it to deceive and exploit people – especially on social media. This is making it even harder to spot fact from fake, and the real-life consequences are devastating.

“Visa is fighting back with smart AI tools that stop scams before they reach people. We also work closely with banks, retailers and platforms, helping people spot an AI-generated scam and understand how it works – because the more people know, the harder it is for scammers to succeed.”