AI-driven scams surge in Australia as shoppers lose AUD $445 each

McAfee has released new research warning consumers in Australia about a surge in scams targeting holiday shoppers, with technology and luxury brands named among the most commonly impersonated by cybercriminals.

Rising scam activity

Nearly one in five Australians has lost money to holiday scams in previous years, with the average reported loss amounting to AUD $445. The study found that 89% of respondents encountered advertisements from unfamiliar retailers as early as October, while scam-related web addresses increased by around 10% in the weeks leading up to major shopping events, reflecting heightened criminal activity ahead of the holiday season.

Prominent scam types

Four primary scams have been highlighted: counterfeit retail websites and deal pages, deceptive social media promotions such as those on TikTok, fraudulent delivery and shipping text messages, and gift card or account verification scams. These scams often use replicated brand imagery and messaging to appear legitimate, preying on consumers' trust.

Most impersonated brands

Apple, Nintendo, Samsung, Disney, and Steam have emerged as the most targeted mainstream consumer brands. For luxury products, Coach, Dior, Ralph Lauren, Rolex, and Gucci are frequently impersonated. Coach leads the luxury segment, with approximately 45% more scam-related websites than the next closest luxury brand. Apple is the highest among consumer brands in terms of impersonation through fake websites, emails, and promotional alerts.

Growth in fake storefronts

There has been a 45% increase in counterfeit websites mimicking luxury brands, particularly those offering handbags, footwear, and special releases. These sites often use authentic product images, similar layouts, and customer service language to encourage shoppers to enter payment details or personal information.

Consumer caution

Many Australians are becoming more wary of potential scams. Sixty percent reported increased concern about AI-generated scams compared to previous years, and over a third have abandoned purchases that seemed suspicious. Nonetheless, only a quarter of survey participants felt completely confident in their ability to identify a scam, even though 17% admitted to falling for one in the past. Shoppers report increased vigilance in scrutinising online ads and communications during the holidays.

AI in scam tactics

Artificial intelligence is playing a notable role in helping criminals create convincing fakes at scale. This includes the rapid production of lookalike websites, realistic product pages, deceptive emails, and SMS messages intended to exploit busy buyers.

"Scammers have always taken advantage of the holiday rush to exploit people looking for deals, but AI has made it easier for them to copy trusted brands with speed and accuracy that is hard to spot," said Tyler McGee, Head of APJ, McAfee.

"From imposter websites and fake products to convincing emails and texts designed to pull people in, scammers today are using AI to create some of the most believable social-engineering tricks we've ever seen. The best protection is to slow down, verify what you see and use tools that can flag suspicious links or pages before they do harm," said McGee.

Guidance for shoppers

McAfee recommends consumers take measures such as pausing before clicking on unfamiliar links, shopping only through reputable retailers, using scam detection tools, and enabling two-factor authentication. The company also advises making use of secure websites and monitoring financial statements for unusual activity.