Three in four shoppers believe AI advances have made scams more convincing, fuelling Black Friday fraud fears according to latest research from Barclays.
Key Findings:
Just one in three are confident they could spot an AI scam when shopping online
Gen Z are most likely generation to avoid online shopping due to scam fears, at 34 per cent
Amid growing online distrust, scammers are turning to text to target victims directly, with average monthly reports originating via text/SMS more than doubling since 2023
Ahead of Black Friday, the UK’s busiest retail event, new research shows that AI is making consumers more susceptible to purchase scams. As fraudsters change tactics and turn to SMS/text to directly target victims, Barclays is urging deal-seekers to act with caution to stay protected when shopping in this year’s sales.
Three in four UK adults (75 per cent) believe AI advances have made online scams more convincing, while just 36 per cent feel confident they could spot an AI-generated scam. Shoppers say AI is making fake reviews (47 per cent), fake websites (45 per cent) and fake social media ads (37 per cent) harder to spot.
Half (50 per cent) are more worried about falling victim to a scam than they were 12 months ago – despite three in four (73 per cent) typically doing some form of research before committing to an online purchase. These shoppers most often look at customer and product reviews (48 per cent), however they may rely on them less going forward if they struggle to distinguish between those that are authentic and those that have been created using AI.
Gen Z Leads Retreat From Online Shopping Amid Scam Fears
One in three (34 per cent) Gen Z adults now avoid online shopping due to scam concerns – the highest rate of any generation and 12 percentage points higher than older age groups (22 per cent). Gen Z are also most likely either to have lost money to a shopping scam or to know someone who has (35 per cent), more two times higher than Baby Boomers (15 per cent). FOMO has a part to play; 54 per cent of Gen Z say they feel pressure to purchase sale items quickly to avoid missing out.
Scammers Are Turning To More Direct Channels
Barclays proprietary data shows fraudsters are increasingly turning to direct and trusted channels to target victims. While social media remains the biggest source of purchase scams, average monthly reports originating via text/SMS have more than doubled when comparing 20251 to 2023, increasing text/SMS’ share of total purchase scam claims to 8 per cent in 20251 (up from 3 per cent in 2023). Similarly for digital-native Gen Z adults, the share of text/SMS scams has increased from 3 per cent to 9 per cent over the same period of time.
This comes as proprietary data from Barclays shows the typical (median) value of a shopping scam has increased 43 per cent when comparing 20251 to 2023, despite the average monthly volume falling 14 per cent, highlighting that shopping scams are becoming higher value despite fewer people falling victim.
The Demand For Collaborative Action Is Clear
Eight in 10 (81 per cent) believe more work should be done to protect consumers from scams, while 79 per cent agree that tech companies need to be doing more to prevent scams from occurring on their platforms. Almost half of consumers (45 per cent) would even feel comfortable with tech companies and banks sharing personal data with each other, if it was done to prevent them from falling victim to a scam.
Kirsty Adams, Fraud & Scams Expert at Barclays, says: “Scammers are adapting fast, using increasingly sophisticated tactics to exploit shoppers during peak sales periods. Acting quickly without checking can lead to serious financial loss. My advice is simple: pause, verify, and never share sensitive information unless you’re certain the retailer is genuine.”
Kirsty shares her SAFE guidelines to help shoppers stay alert and avoid falling victim to purchase scams:
S – Stop and research
Before clicking on a link or entering payment details, pause and check. Verify the retailer’s official website, look for secure payment options, and read independent reviews. A few minutes of research can prevent a costly mistake.
A – Ask someone you trust
If a deal looks too good to be true or you’re asked to pay through unusual methods, speak to a friend or family member. They may spot warning signs you’ve missed.
F – Flag unrealistic offers
Be cautious of offers that promise huge discounts or pressure you to act immediately. Scammers often use urgency to push shoppers into quick decisions.
E – Ensure secure processes
Legitimate retailers will never ask for bank details via SMS or social media. Always use official payment gateways and avoid sharing personal information through unsecured channels.
