Criminal gangs are increasingly using deepfake child sex abuse images to blackmail schools, with experts calling the situation "shocking." A recent report reveals that nearly half of headteachers in the UK have reported incidents where pupil images were misused, including for blackmail and extortion. The In Plain Sight report, commissioned by an AI safeguarding tool called Aidos, surveyed 500 primary and secondary school teachers and found that 49% had experienced misuse, manipulation, or extortion attempts involving student images. Additionally, 54% of teachers expressed concerns that images on their school websites could be vulnerable to being altered or exploited using artificial intelligence. Experts warn that the problem is part of a growing "pandemic" of deepfake child sexual abuse material being created online. Safeguarding professionals say schools are being "exploited" by criminals who understand the pressures on school leaders. Simon Bailey, a former national policing lead for child protection, explained that organized crime groups are targeting school heads with a "precise understanding" of the areas where they feel most vulnerable. "They know that many school leaders will prioritize protecting their school's reputation above all else," he said. "That instinct is entirely human and understandable, but it is also a vulnerability, and it is being exploited." Aidos founder Carole Osborne said schools are not only being targeted by criminals for extortion but also by paedophiles who use student images to create their own child sexual abuse material (CSAM). She added that children themselves are sometimes creating deepfake images of other students or teachers. Osborne expressed surprise at how widespread the issue has become. "I always knew that this was happening more and more, but I didn't realize how much it was happening, and how many schools it had happened to," she said. She urged schools to take the threat seriously and implement practical measures to prevent such misuse. This follows warnings from child safety organizations, including the National Crime Agency (NCA) and the Internet Watch Foundation (IWF), advising parents not to post pictures of their children online. Dan Sexton, the IWF’s chief technology officer, acknowledged the difficulty of giving such advice. "I don’t know what else to say to parents," he said. "I would be very cautious about putting pictures of children online because there is no protection." The situation highlights the urgent need for better safeguards and awareness to protect children from the growing risks posed by AI and online exploitation.