Fraudsters are stealing millions from shoppers using increasingly sophisticated tactics powered by AI. In the UK, as an example, over seven million people have received fake messages in the past twelve months.
“The problem is now we have so many AI options, it is easier than ever for scammers to create fake sites, fake images, or fake offers,” warns Lior Pozin, Founder of Build Your Store in a communication sent to Digital Journal.
“What used to take technical expertise can now be generated in minutes using artificial intelligence. This means that more criminals than ever have access to the tools to make their jobs easier, and your life harder,” Pozin adds.
Online shopping and auction fraud now accounts for 20% of all online fraud incidents reported to the UK service Action Fraud, making it one of the most prevalent threats facing UK consumers. And with broader fraud losses hitting £1.17 billion in 2024, driven partly by a 14% spike in unauthorised card fraud, the scale of the problem is becoming impossible to ignore.
The Five Scams You Need to Watch Out For
- The Clone Wars: Fake Website Scams
According to Pozin: “You search for a product, click what looks like a legitimate retailer’s website, and everything appears normal. The logo is correct, the layout is professional, even the customer reviews seem genuine. But look closer at the URL, is it really the right address?”
Fraudsters are creating pixel-perfect copies of legitimate retailer websites, often paying for advertising to ensure their fake sites appear at the top of search results. These cloned sites collect your payment information and personal details, but the goods you’ve ordered never arrive. By the time you realise something’s wrong, the website has vanished.
- The Delivery Text That Isn’t
Pozin’s next scenario is: “Your phone buzzes. “Your parcel is being held, additional customs fees required.” The message looks official, includes tracking numbers, and creates urgency. But it’s a trap.”
Fake delivery notifications are one of the most common scams to hit UK shoppers. These messages contain links to fraudulent payment portals designed to harvest your banking details. Some even mimic the exact formatting and sender names used by legitimate courier companies.
- Social Media Storefronts That Disappear
Pozin turns to popular social media: “Scrolling through Facebook Marketplace or Instagram Shopping, you spot the perfect gift at an unbeatable price. The seller has hundreds of positive reviews, professional product photos, and responds quickly to messages. What could go wrong?”
Scammers are increasingly sophisticated in their use of social media platforms, creating temporary storefronts that look entirely legitimate. They use stolen images, fabricated reviews, and professional communication to build trust, then vanish the moment you’ve transferred payment.
- Charity Scams Exploiting Goodwill
Pozin looks at scammers pretending to be representing good causes: “ Fake charity shops and fundraising campaigns have multiplied, particularly around popular causes, collecting donations that never reach the intended beneficiaries.”
These scams are particularly cunning because they exploit our desire to help others during the season of giving.
- Hijacked Seller Accounts
Pozin warns: “Sometimes the seller account is real, it’s just not being controlled by its legitimate owner anymore. Criminals are hijacking established seller accounts on major marketplaces, leveraging their positive reputation and transaction history to process fraudulent sales before the real owner even realises their account has been compromised.”
