Deepfakes and social media drive surge in online shopping scams this festive season

Nearly half of Indian consumers reported being impacted by deepfake shopping scams during the festive period from October 1 to October 28, according to cybersecurity firm McAfee. The company’s Global Festive Shopping Survey revealed that 45% of shoppers either fell victim themselves or knew someone who did. Alarmingly, 46% of those affected reported losing over Rs 41,500, underscoring the rise of sophisticated online scams.

The surge in online shopping during the festive season, with 66% of Indians opting for e-commerce for convenience and discounts, has created a fertile ground for scammers. Fraudsters capitalized on the trend by designing fake websites mimicking trusted platforms like Flipkart and Amazon, offering unrealistic discounts of up to 99%.

McAfee identified nearly 24,000 malicious URLs during this period and flagged an increase in phishing emails targeting unsuspecting shoppers, especially during major festivals like Durga Ashtami and Diwali.

AI and deepfake technology enhance scam sophistication

The use of artificial intelligence (AI) has made cyber scams more convincing and harder to detect. Deepfake technology, in particular, has enabled the creation of realistic but fraudulent celebrity endorsements, purchase alerts, and missed delivery notifications.

Key scam tactics included: Missed delivery alerts (37%); Fake purchase confirmations (30%); Security warnings from e-commerce platforms (24%); and Banking or credit card fraud alerts (43%).

McAfee’s survey highlighted that 84% of Indian consumers are more worried about deepfake scams compared to last year, with 74% believing that cybercrime spikes during festive periods.

Social media as a fraud hub

Social media platforms have become a new battleground for cybercriminals. Nearly 47% of Indian shoppers reported encountering scams involving fake celebrity endorsements or dubious online retailers through social channels. Additionally, 31% admitted they were likely to buy from new retailers discovered on social media if the deals appeared attractive, making them prime targets for fraud.

Rising consumer concerns

Consumer anxiety about online fraud has grown significantly, with 78% of Indians expressing greater concern about scams this year compared to 2023. McAfee’s findings show that while the festive season is a time for celebration, it also marks a peak period for cybercriminal activity.

Tips for safer online shopping:

To combat online fraud, McAfee recommends the following precautions:

·       Verify links: Avoid clicking on unsolicited emails or messages; access official websites directly.

·       Detect deepfakes: Watch for unnatural movements, mismatched audio, or inconsistencies in images or videos.

·       Enhance cybersecurity: Use trusted security tools to block malicious content and detect threats.

Study overview

McAfee conducted its survey in November 2024, covering 7,128 participants across seven countries, including India. The study examined shopping habits, cybercrime trends, and the rising threat of AI-driven scams.

“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,” he emphasised.