5 online shopping scams to beware of this festive season

A stark warning from the National Cyber Security Centre highlights the increase of online scams as one in four fall victim around the festive period. Security software company McAfee shared that they have protected consumers from malicious links more than 81,000 times in the first few days of December 2024 alone.

To counter this, experts at AIPRM compiled a list of the top AI-driven scams shoppers should watch out for this festive season. Christoph Cemper, founder of AIPRM, says there a number of innovative ways that scammers attempt to trick online shoppers.

“A [false sense] of urgency, no matter how well explained, is the top red flag for any kind of scam, 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.”

According to Cemper, the most common form are phishing scams that lure users into providing their personal or payment details too soon/too early based on vague promises. 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 systems were busy for months due to an identity theft incident which the victim barely remembers engaging with,” says Cemper.

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

Here are Cemper’s five scams to look out for and how to avoid them:

1. Marketplace listings

With Christmas typically being costly, shoppers will be looking for cheaper places to shop and bag a bargain. 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 digital marketplace. Watch out for the 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 87% consumers now struggle to distinguish real reviews from fraudulent ones. Tripadvisor alone flagged a record two million reviews as fake on its platform last year. With the rise of tools such as 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. You also need to 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 or have been 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 budgets 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 provided photos closely. AI-generated images can have imperfections such as unnatural lighting or blurry areas.

4. Fake shopping sites

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 such as “limited-time sale” or “only one 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.

5. Phishing e-mails and text messages

One in five people click on AI-generated phishing e-mails, with a shocking 65% tricked into revealing personal information through input fields on websites linked in those e-mails. Scammers are using AI to craft highly convincing phishing content disguised as legitimate companies. Imagine receiving a text or e-mail 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.