Fake news generated by artificial intelligence and spread on social media is heightening the risks of bank runs, according to a new British study that says lenders must improve monitoring to detect when disinformation risks impacting customer behaviour.

Generative AI can be used to create fake news stories saying that customer money is not safe, or memes appearing to joke about security issues, which can be spread on social media using paid adverts, said the study, published by UK research company Say No to Disinfo and communications firm Fenimore Harper.

Banks and regulators are increasingly concerned about the risks of bank runs fuelled by social media, following the collapse of Silicon Valley Bank in 2023, in which depositors withdrew $42 billion in 24 hours.