AI-driven scams increase during holiday shopping season | News

As the holiday season approaches, fraudsters are using artificial intelligence to target online shoppers more than ever before.

While online shopping scams are not a new threat, the use of AI to drive phishing scams is becoming more widespread.

Phishing is a type of online scam in which fraudsters attempt to trick individuals into revealing sensitive information such as passwords or banking details.

This typically occurs through fake emails, fraudulent websites, and fake text messages or calls designed to steal personal and financial information.

Thanks to the power of AI, these scams may now be easier to create and harder to identify.

ZScaler, a cloud-based cybersecurity company, has prepared a 2024 phishing report. The report found that AI-driven phishing attacks increased by 60% from January to December 2023.

An analysis by AI cybersecurity firm Darktrace also states that Christmas-themed phishing attacks increased by 327% worldwide from November 25 to 29, 2024.

So what can consumers do to protect themselves?

According to Khesha Duncan, Columbia director of the Better Business Bureau, it starts with educating yourself when shopping online.

“You really have to retrain your brain to slow down and not react immediately, because all it takes is one wrong click and you could be in trouble,” Duncan said.

The most common AI-driven scams:

Phishing emails: This is fake news that imitates legitimate retailers. With AI, it has become increasingly easier to replicate emails from retailers. These often contain links designed to entice the consumer to click on them, thereby putting sensitive information at risk.

Smishing (SMS phishing): Scammers often send fraudulent text messages pretending to be delivery updates, account alerts, limited-time offers, or someone you know.

Fake websites: AI makes it easier to replicate legitimate websites. These websites often imitate popular retailers and display discounts or items.

Vishing (voice phishing) and deepfakes: Voice phishing uses phone calls or voicemails to trick people into sharing information. These often mimic a trusted contact and create a sense of urgency, for example by pointing out a payment deadline or an urgent problem.

With deepfakes, AI creates realistic, yet fake photo or video content. This could be a celebrity, a well-known face, or someone you trust who is asking for confidential information.

“Look at the photos carefully. If something looks cartoonish or one arm has too many fingers, that’s a sign it was created by AI,” Duncan said. “The same goes for voice – AI can make it sound like someone you’ve spoken to before, but even small clues can give it away.”

Warning signs:

Offers that are too good to be true: Scammers often offer rare or popular items at massive discounts.

Suspicious links: Double-check URLs for “https” or a padlock symbol, which indicates secure websites.

Bad grammar and design: Watch out for typos, unprofessional layouts, and poorly written emails.

“With AI, it’s becoming easier and easier to create a fake website that looks real,” Duncan said. Always double-check your content for things like spelling mistakes, bad grammar, and unprofessional images.”

Social Media Imitations: Scammers may pose as friends or family members selling items or sharing fake promotions.

Protect yourself:

Pause before you click: Verify the sender or legitimacy of a website before entering personal information or clicking on links.

“Before entering credit card information, make sure the URL begins with ‘https’ and look for the small padlock icon to ensure it is encrypted,” Duncan said.

Secure your accounts: Regularly update your passwords and make sure your antivirus software is up to date.

Set safe words: Share a unique word with close contacts to verify their identity in case of suspicious communication.

“Establish a safe word with your close contacts,” Duncan said. “If the person can’t answer that, they’re not who they say they are.”

Use credit cards: Pay with credit cards instead of debit cards to further protect yourself in the event of fraud.

If you fall victim to a scam, you can report it to the Better Business Bureau’s scam tracker.

“If you have been scammed, report it to the Scam Tracker immediately,” Duncan said. “It helps us collect data to identify patterns and work with law enforcement to stop these scams.”

You can also contact your state’s attorney general’s office and consider investing in monitoring services like LifeLock to ensure the security of your accounts.

“It’s not fair that we have to stay one step ahead of scammers,” Duncan said. “But these extra steps—checking URLs, verifying sellers, and consulting family and friends—can save you a lot of heartache.”