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Fake stores, AI-generated scams top Cyber Monday warnings

Shoppers in New York are being warned to watch out for fake websites and AI-generated scams ahead of Cyber Monday.

The state’s Division of Consumer Protection says online fraud is on the rise — and scammers are using artificial intelligence to make fake websites, fake product images, and even fake reviews look more convincing than ever.


“There are more and more fake websites and scammers out there trying to take advantage of New Yorkers purchasing gifts for their loved ones this time of year,” said Secretary of State Walter T. Mosley. “These tips from the Division of Consumer Protection will keep you one step ahead of these fraudsters.”

Online scams are costing New Yorkers millions

Last year, New Yorkers reported more than $17 million in losses from online shopping scams. Another $41 million was lost to business imposters, according to the Federal Trade Commission.

At the same time, the U.S. government seized nearly 79 million counterfeit products — from clothing and toys to electronics and medication — which could pose serious safety risks.

What to watch out for when shopping online

Officials say AI is being used to create entire fake online stores, often designed to mimic popular brands. Scam sites may use slightly altered URLs to trick shoppers — like swapping a “0” for an “o” or adding hyphens or extra characters.

They also warn about fake product images and AI-generated models that may show blurry spots, strange lighting, or distorted edges. Some scammers lure victims on social media with flashy ads, fake discounts, and stolen product photos.

Shoppers are urged to:

  • Look closely at website URLs before buying.
  • Avoid clicking links directly from social media.
  • Use official retailer websites when possible.
  • Search for the seller’s name plus “scam” to see if others have filed complaints.
  • Be cautious of third-party sellers and always check return policies.

Protecting your wallet and your data

The Division also reminded consumers to avoid saving payment info on websites and to use credit cards instead of debit cards, which offer better fraud protection. Before checking out, make sure the site starts with “https” and shows a closed lock symbol in the address bar.

And under a new law signed by Governor Hochul, online stores must now disclose if they use algorithms or personal data to set prices — another reason to shop around and compare deals.