The news: A study conducted by UK research firm Say No to Disinfo found that AI-generated fake news on social media raises the risk of bank runs, per Reuters.
How we got here: We’ve covered how social media can fuel bank runs—and it certainly contributed to the collapse of Silicon Valley Bank. And we’ve analyzed how it can change consumer behavior—even if that behavior is illegal.
This newer threat combines both risks. AI-generated fake news about banking security can spread like wildfire on social media, particularly through paid advertisements that amplify the content. And the research company found that just £10 ($12.58) spent on social media ads spreading fake banking news could trigger £1 million ($1.258 million) in withdrawals.