Lloyds Bank · AI used against the institution · severity 2 of 5
The News & Star reported on 25 September 2026 that an 82-year-old Lloyds Bank customer in Carlisle lost about £35,000 after an AI-generated Facebook video showing Nigel Farage fighting Bank of England governor Andrew Bailey led her to a fake investment scheme. From the end of May 2026 a fraudster she spoke to by phone, her family said, had her open Revolut and Kraken accounts and take out a £10,000 bank loan. She died at home on 31 July 2026; her daughter believes the ordeal contributed. After the paper's enquiries, Lloyds classed the case as an authorised push payment (APP) scam, refunded the full amount to her estate "as a gesture of goodwill" and cancelled the outstanding loan. Cumbria Police said the fraud was reported on 7 July.
Record last reviewed Oct 21, 2026 · Markdown
Date
May 2026 · disclosed Sep 25, 2026
Institution
Country
United Kingdom
AI system
AI-generated video of Nigel Farage and Andrew Bailey on a fake Question Time set, used as an investment-scam advert
AI?
Machine-learning system (inferred from the record)
The sources describe a machine-learning model; nobody on the record labelled it AI.
Status
Confirmed by the institution
Severity
2 of 5
Impact
About £35,000 lost, including a £10,000 bank loan; fully refunded and the loan written off by Lloyds · One elderly customer · Her daughter told the News & Star she believes the ordeal contributed to her mother's death; the cause of death has not been reported.
What happened?
According to her daughter, the customer saw a fake video on Facebook that depicted a brawl between Nigel Farage and Bank of England governor Andrew Bailey on the set of BBC Question Time. Clicking it led to a page claiming an initial £200 investment could grow. Farage was not involved; he had described similar clips on X as "bizarre AI videos".[1][2][3]
The Farage-Bailey deepfakes circulated widely in early June 2026. The Bank of England urged the public to report them, with Bailey saying fake adverts impersonating central banks were on the rise, and Reform UK said it had contacted X to have the ads removed.[3][4]
The customer began making payments at the end of May and received calls from a man calling himself 'Norman', sometimes for six hours a day, her daughter said. She alleges he arranged for her mother to open a Revolut account and an account on the crypto platform Kraken, then persuaded her to take out a £10,000 bank loan, telling her to say it was for home improvements. The extent of the losses, about £35,000, emerged only after the customer collapsed at a Lloyds branch in Carlisle and was referred to a crisis team.[1]
Cumbria Police confirmed the fraud was reported on 7 July 2026, said CID officers and an economic-crime fraud officer visited to safeguard the victim, and referred the case to the national agency Report Fraud. The customer died at home on 31 July 2026, aged 82. After the News & Star's enquiries, Lloyds said she had been the victim of an APP scam in which fraudsters persuaded her to move money to Revolut and on to accounts they controlled, and decided to refund her estate in full and cancel the loan.[1][2]
When did it happen?
- May 2026
The customer begins making payments to a fake investment scheme reached through an AI-generated Farage video on Facebook.[1]
- Jun 9, 2026
The Bank of England warns the public about deepfake videos of Farage fighting governor Andrew Bailey spreading on X.[3][4]
- Jul 7, 2026
The fraud is reported to Cumbria Police, which later refers it to Report Fraud.[1]
- Jul 31, 2026
The customer dies at home aged 82.[1]
- Sep 25, 2026
The News & Star reports the case; Lloyds confirms it will refund the full loss to the estate and write off the loan.[1][2]
What was the impact?
- Financial: About £35,000 lost, including a £10,000 bank loan; fully refunded and the loan written off by Lloyds[1]
- Customers: One elderly customer[1]
- Other: Her daughter told the News & Star she believes the ordeal contributed to her mother's death; the cause of death has not been reported.[1]
Severity 2 of 5: Limited harm to one customer: about £35,000 lost and a £10,000 loan taken out, all refunded or written off by the bank after press enquiries.
How did Lloyds Bank respond?
A Lloyds spokesperson said: "[The customer] was the victim of a sophisticated scam and, when she reported this to us, our branch and fraud colleagues spent a number of hours supporting her and raising concerns for her welfare. However, we recognise this is an exceptionally distressing case. In light of these circumstances and [the customer's] long-standing relationship with Lloyds, we have decided to refund the full amount lost to the scam to her estate as a gesture of goodwill." The bank said this would include cancelling the outstanding loan.[1]
What was the outcome, and did regulators act?
Lloyds refunded the full loss to the estate and cancelled the £10,000 loan. Cumbria Police referred the case to Report Fraud; the News & Star said it had asked Report Fraud for an update, and no arrest or charge had been reported as of 2026-10-21. No regulatory action has been reported.[1]
Did Lloyds refund the victim of the AI Farage deepfake scam?
Yes. After enquiries from the News & Star in September 2026, Lloyds said it would refund the full amount lost, about £35,000, to the customer's estate as a gesture of goodwill and cancel the outstanding £10,000 loan, citing the exceptionally distressing circumstances and her long relationship with the bank.
How did the AI Farage scam work?
According to the customer's daughter, a fake AI video on Facebook showed Nigel Farage fighting Bank of England governor Andrew Bailey on a Question Time set and linked to an investment page. A caller then had her open Revolut and Kraken accounts and take a bank loan; Lloyds said money moved via Revolut to fraudsters' accounts.
Did the police act on the Farage deepfake scam case?
Cumbria Police said the fraud was reported on 7 July 2026, that CID and an economic-crime fraud officer visited to safeguard the victim, and that the case was referred to the national agency Report Fraud. No arrest or charge had been reported as of 21 October 2026.
Is the AI Farage scam an AI incident at Lloyds?
It is recorded as an AI-weaponised case: criminals used an AI-generated video to draw a Lloyds customer into a scam, and Lloyds made and explained a refund decision on it. Lloyds' own systems are not alleged to have failed, and Lloyds did not itself describe the video as AI.
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