A new analysis from Barclays shows shoppers are becoming more vulnerable to costly online fraud as artificial intelligence makes scams harder to detect.
In a fresh post, the bank finds that three in four UK adults now believe AI has made online scams more convincing, and only one in three feels confident they could spot an AI-generated scam while shopping.
Shoppers say fake reviews and counterfeit retail sites are increasingly difficult to identify. Nearly half report rising distrust of what they see online.
“Shoppers say AI is making fake reviews (47%), fake websites (45%) and fake social media ads (37%) harder to spot.”
Barclays data shows the typical value of a shopping scam has surged 43% since 2023, even as the total number of incidents has fallen. The data indicates that losses are rising while fewer victims are being hit.
Meanwhile, younger consumers are showing rising concern. One in three Gen Z adults now avoids online shopping due to scam fears, the highest rate of any age group.
“FOMO (fear of missing out) has a part to play; 54% of Gen Z say they feel pressure to purchase sale items quickly to avoid missing out.”
Scammers are also shifting tactics. Barclays says monthly reports of fraud originating via text or SMS have more than doubled since 2023, growing from 3% to 8% of all purchase scam claims.
Among Gen Z, the share of text-based scams has tripled to 9% over the same period. Fraudsters are moving toward more direct and trusted channels to target victims.
Amid the rise of AI-generated fraud schemes, public demand for stronger protection is climbing. Four in five UK adults say more must be done to guard shoppers as AI-driven deception spreads across retail.
Says Kirsty Adams, fraud & scams expert at Barclays,
“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.”
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