• The Bank of England has warned of rising AI-generated scams after deepfake videos of Andrew Bailey and Nigel Farage spread online
• The fabricated videos depicted the pair fighting on the set of BBC Question Time
• Andrew Bailey urged the public to remain vigilant and report fraudulent content
• The Bank has raised concerns about the videos with Reform UK and social media platforms
• AI-generated scams increasingly use public figures to promote fraud and investment schemes
• Martin Lewis has previously described the growing threat as a "wild west" of online scams
• The UK's Online Safety Act will introduce stronger obligations on technology platforms
• Regulators fear deepfakes could be used to facilitate fraud, market manipulation, and misinformation

The Bank of England this week issued a fresh warning about the dangers of artificial intelligence-powered scams after a series of deepfake videos featuring Governor Andrew Bailey and Reform UK leader Nigel Farage circulated widely on social media.

The fabricated clips, which appeared on the platform X, showed Bailey and Farage engaged in a physical altercation on the set of the BBC's Question Time programme.

Some versions depicted police officers attempting to separate the pair, while others showed increasingly dramatic scenes, including one in which Farage appeared to be holding a firearm.

The videos were entirely artificial, generated using rapidly advancing AI technology capable of creating increasingly realistic images and footage of public figures.

Responding to the incident, Bailey warned that similar content is becoming more common and poses a growing threat to the public.

"Unfortunately, fake adverts impersonating the Bank of England and other central banks are on the rise," Bailey said.

"These scams are designed to criminally exploit the public, especially the vulnerable, when they are online.

“I would urge everyone to stay vigilant and report these scams. That way authorities can better root out digital deception like this and permanently remove the fraudsters responsible for what is a truly online scourge."

The Bank of England has reportedly raised concerns about the videos with both Reform UK and the social media platforms involved, reflecting increasing anxiety among regulators and public institutions over the misuse of artificial intelligence.

Farage also addressed the videos directly, seeking to reassure followers that the material was fabricated.

"You may have seen some bizarre AI videos on this platform today," he wrote on X. "Whilst Andrew Bailey and I have our disagreements, I would never take it that far!"

The incident is the latest example of how advances in generative AI are transforming the fraud landscape.

Technology that was once capable only of producing crude manipulated images can now generate convincing videos, audio recordings, and photographs that are often difficult for ordinary users to distinguish from authentic content.

Financial institutions, regulators, and consumer advocates have increasingly warned that fraudsters are exploiting these capabilities to impersonate trusted public figures, celebrities, and corporate brands.

Such scams frequently attempt to lure victims into fraudulent investment schemes, cryptocurrency scams, or other forms of financial crime.

Among the most prominent critics has been consumer finance expert Martin Lewis, whose image has repeatedly been used in fake advertisements promoting fraudulent investment opportunities.

Lewis has previously described the growing ecosystem of AI-powered scams as a "wild west," warning that technology is enabling criminals to scale deception at unprecedented levels.

The controversy also highlights growing scrutiny of social media platforms and their responsibilities in combating fraudulent content.

The UK's Online Safety Act includes provisions requiring technology companies to tackle fraudulent advertising and protect users from harmful content. However, some of the relevant obligations are not expected to take effect until next year.

X, owned by Elon Musk, states that its policies prohibit impersonation intended to deceive users.

The platform has nevertheless faced increasing pressure from regulators and lawmakers over the spread of misleading content generated using artificial intelligence.

The issue extends beyond political figures and financial scams. Earlier this year, X's sister company xAI faced criticism after its Grok artificial intelligence tool was reportedly used to generate inappropriate altered images of women and girls, prompting an investigation by communications regulator Ofcom.

For central banks and financial authorities, the emergence of highly convincing deepfakes presents a new challenge.

Beyond reputational damage, officials fear such content could be used to manipulate markets, impersonate regulators, promote fraudulent investment products, or undermine public trust in financial institutions.