Financial markets under pressure: This is how public institutions protect against fake news!

Financial markets under pressure: This is how public institutions protect against fake news!

Financial markets today face a growing threat from targeted disinformation. As a study by the University of Cologne shows, deepfakes and fake press releases in particular are threats that consumers and the integrity of markets must withstand in the digital age. This research is entitled “IT-Embedded Dynamic Capabilities for Public Institutions Coping with Disinformation – The Case of Financial Fake News” and analyzes how public institutions can counter Financial Fake News (FFN). The researchers Oliver Rath, Frederic Haase, Johannes Werner Melsbach, Jiarun Liu and Detlef Schoder examined real disinformation campaigns and developed strategies to combat them in order to protect consumers and maintain market integrity.

A key result of the study is a taxonomy of FFN scenarios that systematically presents the patterns and goals of misinformation. These scenarios include targeted price manipulation and the deception of small investors. To meet these challenges, the researchers identified “IT-embedded dynamic capabilities” that are based on a solid technological infrastructure. Practical skills include detection mechanisms, early warning systems, internal training and targeted public relations.

The role of media literacy

The topic of fake news, misinformation and disinformation has become increasingly important in recent years. The spread of such content on social media is worrying and is often directed against political and media institutions. The information studies of bpb.de show that unreliable information is often spread by malicious actors, which further undermines citizens' trust in institutions. Furthermore, empirical research shows that fake news is less widespread, but is consumed intensively in certain circles.

At the European level, initiatives such as “EU vs. Disinfo” and the European Digital Media Observatory have been launched to combat the problem of disinformation. Media literacy plays a crucial role as an approach to combating fake news. Primarily, it includes critical reflection on media content and education in the responsible use of information. Studies show that intensive spreaders of fake news often have a high level of media literacy and specifically use dubious sources.

Technological approaches and challenges

The challenges facing public institutions are complex. In addition to the organizational embedding of the skills developed, microfoundations such as processes, routines and the know-how of the employees are also crucial. The analysis of 378 court documents and over 130 policy papers and speeches from international financial supervisory authorities serves as a sound basis for the results, which can also be transferred to other areas such as health and politics.

The findings gained in the study not only provide theoretical impulses, but also a practical framework for dealing with disinformation in the public sector. These technologies and strategies are not limited to the financial sector, but can serve as a model for other areas where fake news and disinformation pose a serious threat.