AI-driven fraud costs UK shoppers almost $15M amid surging Black Friday scams

By Aysu Bicer

LONDON (AA) – The festive shopping season has become a lucrative period for cybercriminals, with the UK losing more than £11.5 million (approximately $14.5 million) to online shopping scams last Christmas alone.

The alarming figure, nearly £1 million higher than the same period in 2022, highlights the growing risk of fraud during the discount-heavy "Black Friday" and holiday sales season.

Lord Hanson, the minister of state in charge of handling fraud issues, said: "We know that more needs to be done to tackle online fraud. That’s why we are delighted to support initiatives like this, through the Stop! Think Fraud campaign, which provide practical, actionable advice to the public to stay safe from scams."

Fraudsters are exploiting the cost-of-living crisis to target bargain hunters seeking holiday deals, according to Richard Horne, chief executive of the National Cyber Security Centre (NCSC).

"Cybercriminals are using increasingly sophisticated scams, sometimes crafted with AI, to trick consumers," said Horne.

The tools make fake listings for clothing and high-end tech on social media and online marketplaces harder to distinguish from legitimate offers.

Between Nov. 2023 and Jan. 2024, more than 16,000 cases of online shopping fraud were reported, costing victims an average of £695 each.

The National Fraud Intelligence Bureau analysis shows that people aged 30-39 were targeted the most (23% of reports), followed closely by those aged 40-49 (20%). The victims’ average age was 42.

Experts believe that fraudsters are using AI to impersonate legitimate businesses, creating fake websites and advertisements that prey on consumers' desire to save money. These tools create convincing text, images, and chatbots to reel in unsuspecting buyers.