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Fraudsters are stealing money from shoppers using increasingly sophisticated tactics powered by AI.
Online shopping and auction fraud now accounts for 20% of all online fraud incidents reported to Action Fraud, making it one of the most prevalent threats facing UK consumers. 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 increasing.
“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 message sent to .
Pozin adds: “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.”
Five scams you need to watch out for
According to Pozin:
Fake Website Scams
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 pixelperfect 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.
If there is any doubt on the legitimacy of the website, call the company themselves to check, just be sure to get the phone number for an official source.
The Delivery Text That Isn’t
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.
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.
Many scammers are part of “fakebook” networks, where thousands or fake or hacked accounts help to convince you a page, item or opinion is legitimate.
Charity Scams Exploiting Goodwill
The time following the festive period often brings out the best in people, and scammers know it. 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
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.
