Black Friday warning as Scots losing up to £2,000 a day to AI online scams
Scots are falling prey to cyber criminals who are using artificial intelligence (AI) to scam them out of up to £2,000 a day in the lead-up to Black Friday and Cyber Monday. Fraudsters are targeting hundreds of online shoppers with AI platforms like ChatGPT, which can generate realistic human-like conversations to deceive victims. These scammers are also utilising AI image generators to create fake celebrity endorsements on deals, adding a layer of authenticity to their schemes. The criminals are pressuring individuals to disclose personal information, bank details, or make payments. It is essential for consumers to remain cautious of phoney deals distributed through phishing emails, texts, and social media advertisements. Moreover, they should be wary of counterfeit websites posing as legitimate retailers, which collect payment but do not deliver purchased items. Instances of scammers selling fake or empty gift cards and fabricating order confirmation pages have also been reported.
As retailers gear up for Black Friday on November 29 with a variety of promotions, Advice Direct Scotland’s senior project lead, Hazel Knowles, emphasised the importance of vigilance during this busy shopping period. She highlighted the concerning trend of AI technology making scams more convincing, thus making it increasingly difficult for individuals to discern fraudulent activities. Knowles stressed the necessity for consumers to verify the credibility of sellers before making online purchases to safeguard their money. She cautioned against impulsive purchases spurred by time-limited discounts that might cloud warning signs of potential scams.
According to figures released by Advice Direct Scotland, from April to November this year, 934 Scots sought help after losing over £495,111 to online scams, averaging at £530 per person. In 2023, losses exceeded £617,367 among 1,550 individuals, totalling £1.1 million or £1,972 per day. However, these figures likely underestimate the true extent of the problem, as they do not account for unreported cases or those directly reported to law enforcement. Online shoppers have been advised to conduct thorough research on retailers, ensuring their legitimacy, possessing a secure website, UK address, a returns policy, and clear terms and conditions. Using a credit card for transactions can provide added protection in case of issues, and platforms like PayPal offer safeguards for financial details. Shoppers are reminded to review the returns policy of retailers and to be cautious of deals that seem too good to be true.
In conclusion, as the holiday shopping season approaches, it is crucial for individuals to stay vigilant and exercise caution when making online purchases to avoid falling victim to AI-driven scams.
Insights:
The use of AI technology by scammers to orchestrate online fraud presents a new challenge for consumers in safeguarding their personal and financial information. As the sophistication of these scams increases, individuals must remain vigilant and adopt best practices to protect themselves from falling prey to fraudulent activities. Collaborative efforts between consumers, organisations, and law enforcement are crucial in combating these evolving cyber threats and promoting a safer online shopping environment. By staying informed and adhering to security measures, individuals can mitigate the risks associated with online scams and shop with confidence during peak shopping periods like Black Friday.