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1 of 3 Americans have fallen victim to an online scam during the holiday season – and of the 58% of those who’ve lost money to such scams, nearly 1 in 10 lost over $1,000.
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As fake sites pose as trusted brands and too-good-to-be-true deals flood inboxes, McAfee has protected consumers from malicious links over 81,000 times in just the first month of the holiday shopping season, for Black Friday and Christmas scams alone.
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3 in 5 Americans are more worried about holiday scams this year due to the surge in AI-powered deepfakes, with over 1 in 5 overall – and 1 in 3 among those aged 18-34 – having fallen victim to scams involving AI-generated celebrity endorsements.
McAfee Corp., a global leader in online protection, today released findings from its 2024 Global Holiday Shopping Scams Study, revealing how AI-driven scams and deepfake technology are impacting holiday shoppers. The study shows how AI-powered scams – including deepfakes – are more sophisticated than ever this season, putting shoppers at higher risk of losing money and changing the way people approach their holiday shopping.
“The holidays are a season many look forward to – from consumers, to retailers, to cybercrooks”
The study reveals that holiday shoppers are on high alert, with 78% of Americans believing cybercriminals ramp up their activity during the holidays and 88% saying AI is impacting the number and sophistication of online scams during the holiday season. The rise in scams is fueling this anxiety, with 59% of Americans saying they’re more concerned about being scammed online than they were at this time last year.
McAfee Labs research indicates these concerns have merit, highlighting a significant surge in u********** holiday shopping emails starting in early October. Black Friday emails alone saw a 495% increase from October to early November. Similarly, Christmas-related emails rose by 314% during the same period. This trend suggests that scam-related risks will continue to escalate throughout the holiday season, and consumers should stay aware.
In a world where scammers can use AI-powered tools to create realistic fakes, even messages that appear to be from trusted brands should be closely examined. Emails and texts from trusted brands are top drivers for holiday shopping – 57% of Americans rank emails and 34% rank texts among their biggest motivators. However, many may be taking unnecessary risks when opening these messages: only about half of shoppers consistently verify a message’s authenticity, while nearly 1 in 3 check only sometimes, and close to 1 in 5 never check at all, leaving them vulnerable to scams disguised as real deals.
It’s not just traditional scam messages that are evolving; AI-generated deepfakes now pose a threat, especially to younger shoppers. While 1 in 5 Americans (21%) have unknowingly paid for fake products endorsed by deepfake versions of celebrities, the impact is greater among Gen Z and Millennials, with 1 in 3 people aged 18-34 falling victim to a deepfake scam, compared to around 5% of shoppers aged 55 and up.
“The holidays are a season many look forward to – from consumers, to retailers, to cybercrooks,” said Abhishek Karnik, Head of Threat Research at McAfee. “Using AI-powered tools, scammers can now more quickly and easily create near-perfect imitations of trusted brand messages, celebrity faces and voices, and websites. We’re urging people to stay cautious, think twice about deals that seem too good to be true, and use the best online tools to protect their information. With the latest AI-powered protection, keep your guard up, think before you click, and stay one step ahead to keep your holiday season merry and safe.”
Also Read: Frost & Sullivan Launches FrostAI to Help Organisations Identify and Leverage Growth Opportunities
Top Trends from the Global Holiday Shopping Scams Study
1. Scam Messages are Surging
Today, Americans are inundated with scam messages, many of which are AI-generated, and many are falling victim.
- 64% of Americans receive most of their scam messages via email, 20% encounter them primarily via text, and 16% find them on social media.
- 59% have seen fake missed delivery or delivery problem notifications, 44% received alerts about a purchase they didn’t make, 37% encountered messages claiming there’s an issue with their credit card or bank account needing urgent attention, and 35% reported seeing Amazon security alerts or notifications about account updates.
2. Chasing Deals Can Be Costly
With inflation driving up prices, 84% of Americans are on the hunt for the best holiday deals, but the rush for discounts could put them at risk.
- Over half (57%) are likely to start shopping earlier to snag savings.
- 38% say they’d jump on a great deal as soon as they see it.
- 1 in 5 (19%) are willing to buy from unfamiliar retailers if the price is right.
3. Social Shoppers Face Evolving Risks
More than 100 million Americans are now shopping directly on social media, with platforms like Instagram and TikTok leading the charge in creating easy and accessible shopping experiences. While social shopping offers convenience, it also exposes consumers to new risks, especially as they shop while distracted – a significant risk, since just 59% of Americans feel confident they can identify deepfakes or AI-generated content on social media.
- Shoppers are increasingly turning to social channels, with 12% planning to use TikTok Shopping, 7% planning to use Instagram Shopping, and 5% planning to use Pinterest.
- 83% of Gen Z consumers say their shopping starts on social media.
- 90% say they sometimes see ads from brands they’ve never heard of on social media.
- 74% of Americans admit to taking an offbeat opportunity to make a holiday gift purchase online, including 62% in bed late at night when they should be asleep, 32% at work, 29% while on the toilet, and 11% in the bath.
McAfee’s Tips for Safe Holiday Shopping
To stay safe this season, McAfee recommends that you:
- Think before you click. If you receive an email or text message asking you to click on a link, even if it’s a great-sounding deal or indicates it’ll provide useful information such as a package delivery update, it’s best to avoid interacting with the message altogether. Always go directly to the source and interact with reputable companies.
- Use AI to beat AI. From blocking dangerous links that appear on text messages, social media, or web browsers, customers across all platforms can take advantage of the AI-driven technology behind Text Scam Detector to engage with text messages, read emails, and browse the web peacefully and securely.
- Detect deepfakes. Look for slight inconsistencies in content. Is there unnatural blinking, odd eye movements, or unusual-looking hands or teeth? Does the audio not quite match the speaker’s lips or have a distorted quality?
- Invest in holistic online protection like McAfee+. Use products that provide maximum identity, privacy, and device protection. Help keep yourself and your family safe online with protection that detects and protects against suspicious links and sites (even those that promise to bring the latest in celebrity news!), so you can browse online with greater confidence. For those with an AI PC, take advantage of McAfee Deepfake Detector to alert you of deepfake audio within videos.
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