A tech firm has warned that the world could be heading into what it’s calling “The Great Trust Recession” as people become more skeptical of what they see online due to the rise of deepfakes.

That’s according to identity verification technology firm iProov, which found that 48 per cent of Americans and Brits are questioning nearly every piece of online content because they’re unsure what’s real or not.

Deepfakes are increasingly making it harder for internet users to distinguish between genuine and fake online information. These technologies use artificial intelligence to create digitally altered versions of images, audio, and videos, and they are commonly used by cybercriminals in scams.

The financial services industry, in particular, is a primary target of deepfake scams. One such example is an AI-generated avatar depicting a chief financial officer, which could trick employees into handing over corporate funds to hackers, or a banking customer receiving an AI-generated scam call from their so-called bank.

What’s clear is that consumers are greatly concerned by financial-related deepfakes and think banks should be doing more to protect them. In fact, iProov found that 74 per cent of respondents are prepared to change to a new bank if they feel it can offer greater protection against deepfakes.

This trend is most prevalent among younger generations, with 41 per cent of 25 to 34-year-olds prepared to make an immediate banking switch over deepfake protection. Meanwhile, only 14 per cent of people over the age of 65 would do the same.

The study also found that 52 per cent of respondents think it should be a legal requirement for banks to reimburse customers who lost money as a result of a deepfake scam, highlighting the greater need for banks to take deepfakes seriously.

Deepfakes are also altering consumer attitudes towards public services, with over half of respondents (55 per cent) saying the likelihood of them using a government internet-based service would be higher if it offered robust identity protection.

When it comes to using these services, 43 per cent of users said they would be most comfortable verifying their identity through a mobile app-based secure facial scan. But there’s still a significant proportion of consumers (30 per cent) who would prefer an in-person meeting instead of a digital service.

Andrew Bud, founder and CEO of iProov, said: “AI has blurred the line between real and fake in digital ecosystems, and too many organisations are caught off guard. This study highlights a major shift in consumer sentiment, showing that generative AI is actively undermining the credibility of the institutions people have traditionally relied upon.

“Deepfakes are quickly undermining the trust at the heart of the digital economy, ultimately compelling consumers to change their behaviors and, importantly, who they are willing to do business with.”

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