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AI & fraud—the new frontier for disputes?

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Dan Wyatt, Chris Whitehouse and Olivia Dhein investigate the rise of deepfakes and other AI-augmented scams
  • Explores how AI can be used for fraudulent purposes, such as deepfakes and phishing.
  • Sets out how current law in England and Wales can tackle these threats.

Never has it been easier to generate fake images, video and audio for fraud than in the time of generative artificial intelligence (AI). This article considers how the technology can augment almost any type of fraud, and how the English legal playbook stands up against this threat.

What is AI & what are guardrails?

To understand the new potential for fraud, it is helpful to first understand what large language models (LLMs)—the newest iteration of AI—are, and how they generate their output.

LLMs are the technology that sits behind ChatGPT, probably the most famous example of generative AI. In highly simplified terms, these are computer models that respond with an answer to an input or ‘prompt’

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NEWS
The Law Society RFC Festival of Sport returns next month, bringing together legal and financial services professionals for one of the sector’s largest annual sporting events
Legal aid deserts leave almost one in four without adequate access to justice
The Solicitors Regulation Authority (SRA) has warned solicitors and law firms that using artificial intelligence does not alter their professional obligations, amid concerns over inaccurate legal material and client confidentiality
From forgotten interest claims to case-management appeals, a string of procedural developments offers useful—and occasionally cautionary—lessons for practitioners

Jonathan Fisher KC highlights that it now accounts for around 40% of criminal offences, with roughly 70% involving technology, and argues that the UK cannot simply prosecute its way out of the problem. Detection, investigation and prosecution all require improvement, while different fraud types demand tailored responses.

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