Fraudy Jolly Holidays: AI scams are the new hot deal for Black Friday and Christmas

Kamile Viezelyte
Cybersecurity Content Writer
Fraudy Jolly Holidays

Artificial intelligence played a key role in Black Friday seasonal sales in 2023, according to the UK’s Action Fraud reports. With the biggest sales period upon us, the figures are only estimated to rise, and customers need to keep an eye out for brand-new scam tactics. Find out how you can protect yourself from AI shopping scams and get your holiday shopping done safely.

Generating fraud: the numbers

It’s no surprise that November sees an uptick in scam attempts and data breaches—between Black Friday, Cyber Monday, and Winter Holiday deals, online shopping goes into overdrive, and credit card details become an even hotter commodity on the dark web.

Last year saw these scams hit record numbers. According to Action Fraud, between November 2023 and January 2024, shoppers in Britain were scammed out of around £11.5 million (approximately $14.5 million). The number surpassed the figures during the same period in late 2022 to early 2023 by nearly £1 million, or just around $1 million.

Some of the most popular products used in Black Friday and Christmas sales scams were high-end tech products and cars—large-scale purchases that people tend to save for the discount period. In total, approximately 16,000 online shopping fraud reports were received, with the average fraud costing the victim just shy of £700, or around $880.

According to Action Aid, 43% of the reports named scams on social media platforms, while nearly 20% mentioned online marketplaces. Nearly a quarter of the reports fell in the 30–39 age bracket, with the second-largest ground being 40–49-year-olds. The average age of a fraud victim was 42.

Fake gift cards, spoofed websites, and text messages with suspicious redirects have long been popular strategies among Black Friday scammers. But the rise of generative AI has introduced the new kid on the block—and it’s making a name for itself.

Richard Horne, the chief executive of the UK’s Government Communications Headquarters (GCHQ) National Cyber Security Centre (NCSC), described the scams recorded in 2023 as more sophisticated than during previous years. He noted that many of these schemes were aided by artificial intelligence, making it harder to track down the instigators.

In response to the fraud statistics, NCSC launched the “Stop! Think Fraud” campaign across the UK. According to Lord David Hanson, Minister of State at the Home Office, the initiative aims to “provide practical, actionable advice to the public to stay safe from scams.”

The onslaught of Black Friday discounts has already begun. While it’s impossible to estimate the losses at the moment, the British telecommunications company Three has already noted a monthly increase in scam messages, with the volume since January 2024 increasing by an average of 170,000 messages compared to 2023. With the trend ticking upward, it’s safe to assume that the 2024 Black Friday fraud statistics will surpass the previous year.

Think you might have fallen for a scam deal? Here’s what you can do

If you believe that some of your Black Friday purchases may have been fraudulent, don’t panic. Focus on protecting your bank account details, passwords, and other sensitive information that may have been impacted.

If your account details have been compromised, change your password and set up two-factor authentication immediately. You can use a Password Generator to quickly update your account credentials to strong combinations that are more resilient against brute force attacks. If you think that scammers got hold of your payment information, contact your bank or credit card provider immediately to block the card number and, if possible, reverse the payment.

Not sure which data the hackers might have stolen? Use the NordPass Data Breach Scanner to detect which information has appeared on the dark web. You’ll receive a live alert as soon as your passwords or credit card details are found. If you’ve downloaded a suspicious file from an email, scan your device for potential malware.

Stay safe this shopping season with NordPass

As the Black Friday countdown is inching toward November 29 and businesses launch their deals ahead of the day, here’s what you can do to stay safe during your holiday shopping.

  • Update your passwords ahead of time. Got your favorite shops bookmarked and ready for the shopping spree? Make sure to update your passwords and use unique ones for each account to protect them from theft and data breaches.

  • Set up extra account protections. NCSC encourages people to set up two-factor authentication on all their accounts as an extra security layer, and we strongly agree with this. Multi-factor authentication helps protect your account from being accessed without your verification. You can also set up a passkey on major retailers like Amazon as an even safer and more convenient way to log in.

  • You don’t need to use your real email address. This suggestion might sound counterintuitive. How are you supposed to receive your purchase confirmations and tracking details without your email address? Here’s the trick: instead of using your actual email address, you can set up a spoof one that redirects all your shopping mail to your inbox. Email Masking on NordPass generates a dummy email address that’s connected to your main one and automatically redirects all traffic without exposing your actual personal details, keeping you safe from spam emails and phishing attacks.

  • If the website doesn’t look right, don’t click anything. Spoof websites have been a long-used practice by shopping scammers. AI has carried this strategy to the next level by generating images and text that mimic a real site. Always check if you’re on the right domain, and don’t input your credentials, address details, or payment information if you’re not sure the site is legit.

  • Similarly, don’t open suspicious links in text messages. Smishing is a type of phishing attack that uses text messages to steal user data. False parcel tracking texts are especially popular during the big sale season—always double-check your delivery information and don’t click tracking links that look off.

  • Avoid using your real address when possible. We don’t always think about how frequently we share our home addresses online. If you can, set up a PO box or have your purchases delivered to a parcel locker, not your doorstep. If scammers get your full name and address, they might use this information for further schemes or sell it online.

Don’t let a stolen password dim your holiday cheer. Get your Black Friday shopping sorted safely with NordPass and stay aware of the biggest scam telltales. Best of all, you can put your security first and check out the special deal for NordPass Premium and Family plans. Happy shopping!

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