Here are the biggest Black Friday scams to look out for – and how to spot a scam

Topline

As Black Friday sales approach, experts and government officials are warning shoppers about scams they may encounter as they search for last-minute holiday gifts, as innovations in artificial intelligence help criminals tackle more sophisticated scams to design.

Key facts

Important background

According to security software company McAfee’s 2024 Global Holiday Shopping Scams Study, one in three Americans has fallen prey to scams during the holiday season, with 58% of victims losing money to these scams. About $95.2 million in losses were reported to the Federal Trade Commission between October and December of last year. Intelligence firm EclecticIQ discovered a coordinated phishing campaign in early October, likely linked to a Chinese threat actor, targeting US and European online shoppers looking for Black Friday discounts, with several websites claiming to be from major brands created to obtain personal information and banking details when victims shop on the site.

Crucial quote

The discount period has become “prime time” for scammers, said Richard Horne, CEO of the UK’s National Cyber ​​Security Centre, who dubbed the sale period Black Fraud Day.

How is Ai used by scammers?

Scams look much more legitimate than they used to because of innovations in generative artificial intelligence, Steinhauer told Forbes, and criminals can quickly mount large-scale AI attacks. For example, AI can generate well-crafted mass marketing emails, along with images that replicate those of legitimate sellers, right down to the fonts and design. Generative AI can now also write code for a website, generate images, or duplicate a website’s code at scale. Deepfake technology can now create more realistic celebrity endorsements, Scott Shackelford, executive director of the Center for Applied Cybersecurity Research at Indiana University, previously told Forbes. According to the McAfee survey, about 59% of respondents say they are confident they can identify deepfakes or AI-generated content.

What can buyers do?

Scams are becoming harder to spot, Steinhauer said. “A few years ago I would have said bad design or spelling mistakes, things like that. But that is honestly not the case,” Steinhauer said. “It can be very similar to the real thing.” If the discount seems too good to be true, consumers should check the website URL or go directly to a retailer’s website to make sure the sale is legitimate. If a sale has a countdown clock with limited-time offers, shoppers should also take a moment to check if the sale is legitimate, as scammers often create a false sense of urgency, experts say. If a celebrity ad or endorsement seems random or strange, Shackelford says, it’s best to reach out to trusted sources and websites that consumers are more familiar with. Steinhauer recommends using credit cards for payments over other payment methods because credit cards generally offer fraud protection and shoppers can more easily get reimbursed for losses if card information is compromised.

Read more

These are the biggest Prime Day frauds to watch out for (Forbes)