Disinformation, Real Losses: How a Solid Strategy Can Shield Your Business from Reputational and Financial Damage

The rapid pace of social media and the growing use of artificial intelligence (AI) have transformed how information circulates and how markets respond. For brands, this can mean greater visibility and engagement. While this creates opportunities for visibility, it also exposes firms to an emerging class of risks where perception, not performance, moves markets. Disinformation, especially when embedded in financial contexts can weaponize credibility and destabilize trust at scale. But when disinformation, especially financial disinformation, goes viral, it represents one of the most significant threats to market stability, corporate value, and brand trust.

This threat became alarmingly real on April 7, when a false report claimed the U.S. would pause tariffs for 90 days, excluding China. Within minutes, the S&P 500 surged by $2.4 trillion, only to plummet 23 minutes later after the White House denied the report.(1) The origin? Anonymous posts on social media are rapidly amplified by financial news outlets before verification.

This event spotlighted the vulnerability of our financial ecosystem to unverified narratives. Algorithmic trading, media amplification, and investor sentiment formed a volatile loop, proving that reputational risk is now a real-time, systemic threat. Globally, fake news is estimated to cause economic losses of $78 billion annually, with nearly $39 billion directly linked to stock market volatility (2), not to mention the long-tail damage to corporate reputations and consumer trust.

Disinformation as a Business Risk

These aren’t isolated incidents. Consider the Cassava Sciences case, where questionable research reports and strategic manipulation led to severe valuation swings—a classic “short-and-distort” scheme (3). Or the 2013 hack of the Associated Press Twitter (now X) account, which momentarily wiped $136 billion off the U.S. stock market with a single false tweet about an explosion at the White House. Even trusted, institutional sources aren’t immune (4). In Latin America, similar tactics have been deployed to erode confidence in central banks and influence currency markets.

Same Fears, New Dilemmas: The Role of AI

AI has transformed disinformation from a manual operation into a scalable, automated threat. Generative models now produce deepfakes, synthetic news articles, and AI-voiced audio clips that are indistinguishable from reality. This blurs the lines between authenticity and manipulation and makes disinformation faster, cheaper, and more persuasive.

This convergence of AI and financial news has created a new information battleground, where credibility is both the weapon and the target. Yet, AI also offers a solution. From Natural Language Processing to machine learning anomaly detection, tech-driven defenses are maturing. A recent UK study found that 60.8% of banking customers would consider withdrawing funds after encountering false, AI-generated content about institutional instability, demonstrating how disinformation can directly impact liquidity and consumer behavior (5). The study estimated that for every 10 pounds ($12.48) spent on social media adverts to amplify the fake content, as much as 1 million pounds of customer deposits could be moved (6).

Global regulatory responses vary: In China, regulators have begun actively policing AI-generated financial rumors. Meanwhile, Western countries face a balancing act between combating fake news and preserving free speech, making corporate preparedness and digital vigilance even more critical.

Unmasking the lAIs: Data as the First Line of Defense

The most effective brands and financial institutions are investing in advanced analytics to monitor narrative shifts in real-time. Natural Language Processing (NLP) and graph neural networks can now detect coordinated inauthentic behavior, sentiment volatility, and linguistic red flags across news cycles and social media platforms.

While there isn’t publicly available evidence confirming that BlackRock has specifically deployed graph networks to reduce exposure to manipulative trading, the firm has been transparent about its broader use of advanced technologies—including artificial intelligence (AI), machine learning, and natural language processing—to enhance investment strategies and risk management.
For instance, BlackRock’s 2023 Annual Report highlights the firm’s commitment to integrating AI across its operations:

“As a technology leader in asset management, we’ve used AI and related tools including optimization, data science, machine learning, and natural language processing for years. We started our AI Labs in 2018 to build technology-first solutions to drive productivity, efficiency, and investment performance across our platform.”(7)

Similarly, crisis communication platforms, now enhanced by AI, are enabling companies to simulate disinformation attacks and preempt reputational fallout. Others, like BNP Paribas (8) and Santander (9), are leveraging AI-driven technologies—including natural language processing, among other tools—to enhance their ability to detect and mitigate disinformation risks.(10)

At LLYC, we see this not as a future trend, but as a present and pressing necessity. Our communication and intelligence teams merge cutting-edge technology, crisis management, and strategic communications to help brands detect, decode, and defuse false narratives before they escalate. We work alongside leaders to enhance the reputation and influence of organizations among key stakeholders —such as investors, regulators, employees, and buyers— in order to strengthen their performance, impact, and value.

It’s Not a Matter of If, But When

Disinformation is no longer a niche issue. It’s a systemic vulnerability. The April 7 flash surge was a case study of how a single falsehood can disrupt the global economy within minutes. But it also illustrated the importance of predictive systems, rapid verification, and scenario planning.

Protecting markets, and the brands that operate within them; from disinformation is not only a business necessity; it’s an ethical obligation. In a world where perception drives performance, brands need smart tools, strategic foresight, and a trusted partner.

Academic institutions and policy think tanks are also beginning to step in, offering ethical frameworks for algorithmic verification, media accountability, and AI governance in financial markets. LLYC is that partner. With expertise in data intelligence, crisis navigation, and brand protection, we help businesses turn disinformation into resilience.

(1) False tariff headline sends stocks on $2 trillion ride.
(2) Fake news creates real losses
(3) Cassava Sciences files lawsuit against perpetrators of “short and distort” campaign.
(4) AP Stylebook
(5) AI-driven disinformation could trigger UK bank runs.
(6) AI-generated content raises risks of more bank runs, UK study shows.
(7) Embracing transformation: 2023 Annual Report.
(8) BNP Paribas invests in NLP specialists Digital Reasoning.
(9) Santander deploys deepfakes to raise awareness of AI scam risks, with half of Brits unaware or confused by the emerging threat.
(10) Deepfakes y cómo protegerse contra estafas.