A new framework could transform content creation by requiring creators to stake money on the accuracy of their claims
With misinformation and AI-generated deepfakes widespread, UNSW Business School and PwC Australia have developed a new research-based solution to combat fraud: a market-based framework that leverages financial collateral to hold content creators accountable for the accuracy of their claims.
The research team has introduced a concept called "veracity bonds", which transforms content publishing from a risk-free activity into a financially accountable act, requiring creators to stake money that guarantees the truthfulness of their content. If readers suspect inaccuracies, they can challenge the claim by placing a counter-bond, creating a robust environment for truth-seeking.
Lucas Barbosa, Honours Researcher at UNSW Sydney and former Senior Associate at PwC Australia, led the research team that included UNSW Business School Associate Professors Sam Kirshner and Eric Lim, together with PwC Australia AI Partner Rob Kopel and former AI Lead Tom Pagram. The team published their findings in their paper, A New Incentive Model For Content Trust, which demonstrates how financial incentives can align market forces with truth-seeking behaviour.
Mr Barbosa said the catalyst for the research came from conversations about advances in AI and the futility of trying to spot deepfakes in the future: "We realised that detecting deepfakes was a fool's errand, and that a solution focused on verifying authenticity would be more robust as these GenAI models became more intelligent."
Deepfake fraud quadruples as traditional detection methods fail
The research addresses a growing crisis highlighted by broader industry research. A Sumsub Identity Fraud Report, for example, found that deepfake-driven fraud quadrupled globally in 2024, while the 2024 Global Economic Crime Survey found cybercrime (including impersonation fraud using deepfake technology) is the top-reported type of fraud across the world.
PwC's most recent Global Digital Trust Insights Report found that security executives report that GenAI (67%) and cloud technologies (66%) have expanded cyberattack vectors over the past year.
Financial stakes create accountability through market forces
The veracity bonds system utilises a closed-loop mechanism where content creators must stake collateral to demonstrate their confidence in their material. This financial commitment deters unnecessary disputes and ensures that all challengers face an equivalent risk. If an inaccuracy is proven, the penalties collected from inaccurate content are used to fund the rewards for accurate assessments.
"This mechanism is a way for independent content creators to enhance their reputation as the new gold standard for news dissemination, or for traditional news media to rebuild their trust and to build a larger audience on new social media platforms," A/Prof. Lim explained.
In the insurance industry, for example, Mr Barbosa said veracity bonds could require claimants to stake collateral on the accuracy of their submissions, creating a strong disincentive for false claims. "Given that insurance fraud accounts for a significant share of losses, even a modest reduction through this mechanism could save companies billions while signalling greater trustworthiness to policyholders," he said.
Theoretical business applications span supply chains to academic publishing
The economic model underlying veracity bonds incorporates multiple layers of incentives. Creators of more highly staked content gain visibility, motivating them to provide verified information. Challengers stand to benefit from forfeited bonds through successful disputes, fostering a culture of accountability.
A jury of verified users will evaluate disputes, redistributing bonds from the losing party to the winner and its adjudicators. To further validate the veracity of the content, the jury system employs mathematical safeguards to prevent manipulation. Jurors undergo digital identity verification and face peer accountability, receiving compensation for quality assessments while risking damage to their reputation for poor performance.
Mr Barbosa gave the example of how juries could be used to verify sustainability claims by requiring companies to back their environmental disclosures with veracity bonds. "Independent jurors drawn from accredited experts would oversee disputes, ensuring that only companies with genuine environmental practices and reporting retain both their bonds and their reputations," Mr Barbosa said.
The jury model could also be applied in the academic world, where Mr Barbosa said researchers could stake veracity bonds on their papers, signalling confidence in their findings while providing reviewers with a financial incentive to assess them quickly and thoroughly. He explained that this process would discourage weak or fraudulent studies, speed up the peer-review process, and strengthen trust in scholarly research.
This innovative framework, developed by UNSW and PwC, is designed to transform the way we interact with information in the digital age, restoring trust and veracity in an increasingly complex information ecosystem.
