Deepfakes to social media: Online shopping scams spike this festive season

McAfee's Global Festive Shopping Survey found a rise in online shopping scams led by the creation of fraudulent websites, fake discounts, and the use of deepfakes

A staggering 45 per cent of Indian consumers reported either falling victim to deepfake shopping scams or knowing someone who had during the festive season in India, spanning October 1 to October 28. Global cybersecurity firm McAfee’s Global Festive Shopping Survey revealed that nearly half (46 per cent) of those who lost money suffered financial losses exceeding Rs 41,500, highlighting a significant rise in online shopping scams.

 

Consumer concern has heightened, with 78 per cent of Indian shoppers more worried about online scams this year than last, largely due to the rise of AI-driven deepfake scams.

 

On a positive note, McAfee reported safeguarding users from almost 24,000 suspicious or malicious URLs throughout the festive period.

   

Fraudulent websites, phishing scams most common

A shift in shopping habits has increased vulnerability to cybercrime. With 66 per cent of Indians preferring online shopping this year for its convenience and discounts, scammers have capitalised on the trend by creating fake shopping sites mimicking trusted platforms like Flipkart and Amazon. These fraudulent sites often lure customers with implausible discounts of up to 99 per cent.

 

McAfee’s analysis of over 800 unsolicited emails highlighted a rise in phishing attempts during peak shopping days, especially in the lead-up to major festivals like Durga Ashtami and Diwali.

 

“Festivals are a time for celebration, but for cybercriminals, they’re an opportunity,” said Pratim Mukherjee, senior director of engineering at McAfee. “AI tools have made it easier for scammers to create convincing fake websites and celebrity endorsements. Consumers must stay vigilant and sceptical of deals that seem too good to be true.”

 

Use of deepfake, AI in scams

The use of artificial intelligence (AI) has amplified the sophistication of cyber scams. McAfee’s survey found that 74 per cent of Indians believe cybercriminal activity spikes during festive periods, while 84 per cent are more concerned about deepfake scams compared to last year.

 

Deepfakes—synthetic media generated by AI—pose significant risks, with fake endorsements and fraudulent notifications becoming alarmingly realistic. Scams often take the form of:

• Missed delivery notices (37 per cent)
• Fake purchase alerts (30 per cent)
• Security warnings from e-commerce platforms (24 per cent)
• Banking or credit card issues (43 per cent) 

Social media: A new playground for scammers

Social media’s growing influence on purchasing decisions has not gone unnoticed by cybercriminals. Nearly 47 per cent of Indian consumers reported encountering scams involving fake celebrity endorsements or dubious online retailers.

 

Interestingly, 31 per cent of consumers admitted they are likely to buy from a new retailer discovered through social media if the deal appears attractive, making them easy targets for fraud.

 

Tips for safe online shopping

Here are some tips to ensure safer online shopping practices:

• Verify links: Avoid clicking on unsolicited emails or texts. Visit official websites directly.
• Spot deepfakes: Look out for unnatural facial movements, audio mismatches, or visual inconsistencies in online videos and images.
• Invest in cybersecurity: Use tools or programmes that help detect and prevent threats. 

Survey insights 

The findings are based on McAfee’s November 2024 survey of 7,128 adults across seven countries, including India. The study focused on deepfake scams, festive shopping behaviours, and the evolving nature of cybercrime.