AI-Powered Holiday Scams Are Exploding: What Shoppers Must Know
Fake Stores, Phishing Emails, and Delivery Scams Are Surging as Criminals Weaponize Generative AI
It appears there is no safe place left for holiday shoppers to escape scammers. Deepfakes, fraudulent text messages, and phishing emails are flooding inboxes and social media platforms.
According to Axios, generative AI tools have made scams more frightening, more convincing, and easier than ever for people to fall for.
Cybersecurity and financial firms have warned of a sharp rise in realistic phishing emails and text messages, fake e-commerce websites, and deceptive social media ads ahead of this year’s shopping season.
Sixty-two percent of Americans say they are likely to buy something immediately when they see a good deal online, according to a Norton report published in October. That impulse leaves little time to spot red flags before falling victim to scammers.
Below are the major scams experts warn shoppers to watch for when hunting for deals:
1. Look-Alike Online Storefronts
Scammers continue cloning legitimate e-commerce websites to steal credit card information and promote counterfeit goods.
They often use URLs that differ by just one letter from authentic ones, then boost the fake sites through social media ads and phishing emails.
Amazon, Temu, and luxury brands are among the most frequently spoofed names during the holiday season, according to Forcepoint.
Independent AI agents now allow scammers to create convincing storefronts much faster. Chatbots can generate product descriptions and marketing text, while agents write and execute the back-end code. AI image generators produce fake logos and product photos.
In a recent Mastercard survey, 72% of shoppers said they purchase items from unfamiliar websites. During previous holiday seasons, nearly one in five reported never receiving the items they ordered, and 16% said they received counterfeit goods.
2. Phishing Emails Offering Fake Holiday Deals
Expect a surge of emails impersonating retailers that offer huge discounts or “exclusive” holiday deals.
These messages closely mimic legitimate brand emails and often include links to look-alike storefronts designed to steal login credentials.
Research from Forcepoint and McAfee shows scammers are also sending fake refund notifications and warnings about supposed order problems.
AI tools help scammers perfect the language in phishing messages, eliminating grammatical errors that people are typically told to watch for.
3. Delivery and Shipping Scams
Researchers predict a major rise in text messages exploiting shoppers’ eagerness to track their holiday packages. These messages often claim a delivery failed or demand an extra payment to confirm the address. Some even request the recipient’s Social Security number, according to the Federal Trade Commission (FTC).
Scammers also redirect victims to fake tracking websites branded to look like USPS, UPS, or FedEx—or hide malware behind a “tracking” link.
People lost $470 million to text-based scams in 2024, with delivery scams being the largest category, according to the latest FTC data.
4. Fake Social Media Ads
Scammers are now using generative AI to create highly realistic video ads promoting fake stores. AI-cloning tools can replicate celebrity faces and voices to advertise bogus discounts on TikTok or Instagram, directing viewers to scam websites.
McAfee researchers discovered a video using a cloned version of Taylor Swift’s voice to promote a fake “deal” on Le Creuset cookware sets.
According to Norton, 54% of Americans made at least one holiday purchase through social media ads.
5. Gift Card Scams
Gift cards remain a favorite tool for scammers, according to the Retail & Hospitality ISAC. RH-ISAC expects gift card sales to surge during Black Friday and Cyber Monday.
Seventy-two percent of consumers plan to buy a gift card this season, according to new AARP data. One in three shoppers say they have given or received a gift card that unexpectedly had no balance.
Scammers steal card numbers and PINs from physical packages and drain the funds as soon as the card is activated. Shoppers should check packaging for any signs of tampering.
Bottom Line
If a deal looks too good to be true, go directly to the retailer’s official website to verify it.
Be skeptical of any text message or email requesting payment—especially delivery fees or gift card codes—and contact customer service before entering your credit card information.
