AI and Online Scams: Rising Threats During Holiday Shopping
Full Transcript
As the holiday shopping season approaches, reports indicate a significant increase in online scams, a trend accelerated by advancements in artificial intelligence. According to the Chicago Sun-Times, experts warn that scammers are leveraging AI to create increasingly sophisticated methods of deception, including fake retailer websites and phishing emails.
Larry Zelvin, head of security advisory at BMO bank, noted that while these tactics are not entirely new, AI has increased their frequency and complexity, enabling bad actors to mimic human language and trusted branding at unprecedented speeds.
Kathy Stokes, director of fraud prevention programs at AARP Fraud Watch Network, emphasized that criminals are particularly active during the holidays, exploiting the hustle and bustle of shopping, traveling, and charitable giving.
A survey conducted by McAfee revealed that 96% of U.S. adults plan to shop online this holiday season, yet only 38% believe they can successfully identify scams, with 22% admitting to having fallen victim to one.
The deceptive practices used by scammers are becoming more convincing, often replicating major brand websites in detail, from logos to product images and even checkout processes. McAfee highlighted that a common red flag might be the URL of a website, where fraudulent sites could present slight variations, such as target-sale.com instead of the legitimate target.com.
Additionally, AARP's report indicated that around 89% of U.S. adults have encountered some form of scam, with fake shipping notifications and misleading ads on social media being prevalent. Over half of respondents reported receiving a fraudulent shipping notice this year, while nearly 40% encountered deceptive advertisements online.
Experts advise consumers to be cautious and take their time when shopping online, particularly when faced with deals that seem too good to be true. Slow verification of sources and resisting the urge to rush through the purchasing process are essential steps in avoiding scams.
The holiday season, combined with the rapid deployment of sophisticated AI tools by scammers, creates an environment ripe for digital fraud, underscoring the urgent need for consumer awareness and protective measures against online scams.