Black Friday shoppers warned of AI scams & rising phishing risks

Consumers and retailers are being warned of a growing range of scams ahead of Black Friday, with an increased risk from phishing attacks and artificial intelligence-generated fraud operations. Experts say the shopping event now provides fertile ground for criminal activity aimed at both individuals and businesses.

Data harvesting

Jonathan Frost, Director of Global Advisory for EMEA at BioCatch, said criminals use Black Friday's sense of urgency to manipulate shoppers. Phishing scams are now at least as common as fake purchases as fraudsters exploit consumer eagerness to secure deals and limited stock. Scammers use artificial intelligence to generate thousands of personalised messages, fake adverts, and alerts that are difficult to distinguish from genuine brands.

"Too much of the Black Friday conversation revolves around fake purchases, as it also creates the perfect storm for fraudsters to harvest data. Consumers rush to claim limited time offers and dwindling stock, and scammers weaponise that urgency, using AI to spin thousands of hyper-personalised phishing scams, such as fake ads, extreme discounts, shipping alerts and refund notices that look indistinguishable from the real thing. Criminals then gather credentials, behavioural cues and personal data to later recycle into highly targeted social engineering attacks.

Criminals have also escalated their focus on loyalty account takeovers. With higher discounts on offer, stolen loyalty points can be converted to goods of greater value. Frost said the risk to retailers is increased as well, with some customers attempting fraud under the cover of heightened logistics activity.

"We also see account takeovers spike, with criminals capitalising on significant discounts to increase their returns when attacking loyalty accounts. If you're going to hack someone's Clubcard, you might as well do it when you can get better value.

"It's not only consumers who are targeted. Retailers face their own wave of first-party fraud, with some customers setting out to defraud them under the cover of their pressurised logistics function," said Frost.

Identifying scams

Frost advises shoppers to take particular care when faced with substantial discounts or offers from unfamiliar retailers. He suggests that unrealistic deals and unfamiliar websites should raise suspicion, and that consumers should examine URLs for authenticity, avoid following unsolicited links, and look out for subtle signs such as typos, missing contact information, or inconsistent branding.

"Consumers should approach extreme discounts and unfamiliar retailers with scepticism. A deal that looks too good to be true almost always is. Check website URLs carefully, avoid clicking links in unsolicited ads or messages, and look for subtle inconsistencies such as typos, missing contact details or off-brand imagery.

Additional red flags include declined card payments followed by requests to use alternative payment methods. Shoppers are encouraged to resist pressure to conduct bank transfers, especially when urgency is used as a tactic.

"If your payment card declines and you're prompted to use alternative payment routes, stop immediately. Remember to never be rushed into paying by bank transfer, as fraudsters often use urgency and exclusivity to pressure victims into action," said Frost.

Responding to incidents

If targeted by a scam, Frost recommends halting communication with the suspected criminal and staying within the platform where the initial contact was made. He also advises victims to report incidents immediately and to contact their bank if financial details have been compromised.

"If you think you might be a victim, act now. Stop all communication with the scammer, stay on the platform where you met them, and report them to protect others. Report them to Action Fraud on 0300 123 2040 (or 101 in Scotland) without delay. If you sent money, act quickly and call your bank immediately, and tell them if you have given access to your online banking or payment cards," said Frost.

AI-driven fraud

The landscape of online fraud is changing with the adoption of advanced artificial intelligence tools by criminals. Frost said attacks are expected to become even more challenging to spot as technology improves, with AI capable of generating convincing websites and customer communications.

"Black Friday could be the start of a fraud wave that carries through the holiday season and into the new year. The growing use of AI to generate these clone websites means that by the next Black Friday, it will no longer be about spotting typos, but about spotting AI. The rise of agentic AI, in particular, could see criminals further automate deception, craft personalised scams, and even mimic real customer behaviour, blurring the lines between human and machine," said Frost.