Holiday Shopping Alert: 5 Ways to Defend Against a 5000% Spike in AI Scams

Written by: Meghan Blumsum | Journalistic.org

A stark warning from McAfee highlights how one in three Americans have fallen victim to an online scam during the holiday season, McAfee shared they have protected consumers from malicious links over 81,000 times.

With searches for “perplexity ai shopping “ surging by a whopping 5,000% increase over the past month, the experts at AIPRM compiled a list of the top AI-driven scams shoppers should watch out for this festive season.

1. Marketplace listings

With Christmas typically being costly, shoppers will be looking for cheaper places to shop  and bag a bargain, and for many, online marketplaces are ideal. However, AI tools can now easily generate content for fake listings for the likes of Ebay, Gumtree and Facebook - these scam listings commonly feature high value or in-demand products at temptingly low prices.

Protect yourself this holiday by being extra vigilant when looking to shop on a marketplace. Watch out for inclusion of suspicious links, spelling errors, edited images or anything that does not feel right. Always message the person before purchasing, and only pay in person after seeing the item rather than online.

2. AI-generated product reviews

Fake AI-generated reviews have skyrocketed as nearly 9 in 10 (87%) consumers now struggle to identify the real reviews, and Tripadvisor alone flagged a record 2 million reviews as fake on its platform last year. With the rise of AI tools like ChatGPT, scammers can now generate hundreds of seemingly genuine, glowing reviews in minutes, making it harder for shoppers to distinguish between real and fraudulent products.

To avoid being duped, cross-check reviews across multiple sources and don’t rely solely on reviews from shopping websites, especially if you have never come across the site before. Instead, check independent review platforms and social media for additional feedback. Pay attention to patterns - if a place has an unusually high number of extremely positive reviews posted in a short period of time, it's likely a red flag that they've been generated by AI or planted by scammers. Authentic reviews tend to be more balanced, including both positive and constructive feedback. 

3. AI-enhanced product images

While many shoppers nowadays use AI to help plan their budget and shopping lists, scammers are also taking advantage of this technology to create professional-looking products designed to deceive. These fake products often feature attractive gift packages and discounted deals that promise unforgettable presents at an unbeatable price. Once you send a deposit or full payment, you might find that your perfect present doesn't exist at all! 

To steer clear of sneaky fraudsters, stay alert when presented with offers that seem too good to be true and verify the source. AI-generated sales may appear polished, but they often contain subtle inconsistencies. Check for missing or mismatched details and examine the photos closely - AI-generated images can have imperfections like unnatural lighting or blurry areas.

4. Fake shopping sites

Thanks to AI, scammers no longer need to be tech experts to create convincing websites that mimic legitimate retailers. Often advertising irresistible prices for gifts and products, these sites lure shoppers with offers that seem too good to miss. Fraudsters also often play on urgency, using phrases like “limited-time sale” or “only 1 left” to push consumers into making quick decisions. Once you input your details,  scammers can steal your personal and financial information, leaving you with a ticket to nowhere and out of pocket. 

To avoid falling victim, verify any deals or offers you find online through official retailers and avoid providing payment information through unfamiliar channels. If something feels too rushed, it's a red flag. Double-check all details and confirm through official retail sites or emails before finalising the payment.

6. Phishing emails and text messages

One in five people click on AI-generated phishing emails, with a shocking 65% tricked into revealing personal information through input fields on websites linked in those emails. Scammers are using AI to craft highly convincing phishing content disguised as legitimate companies. Imagine receiving a text or email claiming a certain product is being discounted by 80%, and to avoid missing this deal, you must click a link and enter payment details immediately. The excitement and pressure could lead you to inadvertently put your financial information into the hands of fraudsters.

To stay safe this holiday season, never click on suspicious links or provide sensitive information through unsolicited emails or texts. Always check the sender’s email address, and be cautious of any communication that asks for personal details. If in doubt, contact the company or retailer directly. 

Christoph C. Cemper, founder of AIPRM provides expert comment on identifying AI scams when shopping online this festive season, as well as what to do if you think you have fallen victim to one: 

“A (false sense) of urgency, no matter how well explained (using Generative AI) is the top red flag for any kind of scams, including those shopping online. Nowadays, nearly anything can be faked with AI so if it is ‘too’ well written, ‘too’ good to be true in the offer, or ‘too nice’ in pictures, then I would be especially careful.

The most common form of AI scam is a phishing ‘offer’, that lures the user into providing their personal or payment details too soon/too early based on vague promises that seem too good to resist. Such impulse actions are used to harvest the data as quickly as possible, without much to do once the data is revealed. I know of cases where the legal and police system were busy for months due to an identity theft incident where the victim barely remembers engaging with.

If you think you have fallen victim to a scam, as painful as it is, any kind of revealed information needs to be rendered useless. You can hardly move to another place, so fake ecommerce orders can still happen, but locking down your credit card is the first and most simple thing to do. Contacting your bank as soon as possible is essential. 

While reporting the incident to the police or a cyber-crime unit is recommended, it’s worth noting that these reports often result in education for the victim rather than immediate resolution.”

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