As consumers gear up for Black Friday and Cyber Monday, experts warn that the number of sophisticated scams is growing due to artificial intelligence.
Scammers are using AI to create fake retailer websites, phishing emails and deepfake videos that impersonate trusted brands or influencers, Larry Zelvin, head of security advisory at BMO bank, said.
“These tactics are not new per se, but AI has significantly accelerated their frequency and sophistication. The real shift is in how rapidly and broadly they’re now being deployed,” Zelvin said. “It allows bad actors to mimic human language, replicate trusted branding and personalize messages at speed and scale.”
Kathy Stokes, director of fraud prevention programs at AARP Fraud Watch Network, said, “Criminals are relentless during the holidays, exploiting the many opportunities that come with a busy season — from shopping and traveling to charitable giving.”
Scams swell during the holiday season when 96% of U.S. adults plan to shop online, according to a survey from McAfee, the antivirus software company. Some 38% of those surveyed believe they can spot scams, yet 22% have fallen for one, said McAfee’s 2025 holiday shopping research.
“Scammers know that when people are rushing to buy gifts and click ‘checkout,’ they’re also less likely to slow down and verify what they’re seeing,” Brooke Seipel, McAfee’s content editor-in-chief, wrote in a blog post.
To look authentic, scams copy major brand websites down to the logo, product photography and even checkout cart and customer service pages, McAfee said. One telltale clue might be the website address. For example, a fraudulent website could be target-sale.com instead of the real target.com.
AARP Fraud Watch Network said scammers are using fake shipping alerts, bogus charities and gift card schemes to steal money and personal information.
About 89% of U.S. adults have experienced at least one scam, from fake toll payment texts and phony charity appeals to misleading digital ads, according to AARP’s holiday shopping and scams report released last week. More than half of adults received a fake shipping notice this year, while nearly 4 in 10 encountered deceptive ads on social media.
“If a deal looks too good to be true, it probably is,” Zelvin said. “Slow down, verify the source and don’t let urgency override caution.”
Here are some tips to keep in mind, according to BMO and McAfee.
- Don’t click on links in emails or texts. Go directly to a retailer’s website.
- Verify URLs and look for HTTPS security indicators.
- Use credit cards, which offer stronger fraud protection than debit or payment apps.
- Be skeptical of urgency. “Limited time offers” are a common scam tactic.
- Research unfamiliar sellers before buying, especially on social media platforms.
- Be cautious of QR codes. Fraudsters can embed malicious links in the codes, often found in ads, emails or packaging.
- TikTok Shop scams use fake influencer accounts and counterfeit products to lure shoppers into phishing traps.
- Digital pickpocketing: Criminals use contactless payment devices to skim data from phones or wallets without physical contact.
- Beware of fake delivery notifications. Real shipping companies rarely send texts with clickable payment links. Visit the company’s official website or app to verify any delivery problems.
- Fake messages may claim your PayPal or Amazon account is locked and request you to confirm details. These scams pressure you to “verify” your account or make an urgent payment. Always log in to your account directly, never through a link sent via message.
- Avoid public Wi-Fi while shopping. Public networks are easy for hackers to monitor. Use a secure, or mobile, connection instead.
