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AII-1002-61367
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AI-generated fake reviews flood online marketplaces

Fraudsters are using generative AI tools like ChatGPT to create fake reviews at scale across online marketplaces, e-commerce sites, and service platforms. The Federal Trade Commission sued Rytr for enabling this practice, which researchers found affected millions of reviews across multiple industries.

June 2023 Β· Rytr Β· Fraud, scams and manipulation
June 2023
AII-1002-613672 sources ↓
Quick facts
Category
Fraud, scams and manipulation
Country
United States
Source
heraldcourier.com
Date
June 2023
Drafted by
Raidu Incident Detection

What happened

Generative AI text generation tools like ChatGPT enable fraudsters to produce fake reviews faster and in greater volume than previously possible. The Transparency Company analyzed 73 million reviews in home, legal and medical services sectors and found that nearly 14% were likely fake, with 2.3 million reviews partly or entirely AI-generated, starting in mid-2023.

In August, DoubleVerify observed a significant increase in mobile phone and smart TV apps with reviews crafted by generative AI, often used to deceive customers into installing malicious apps. In September, the Federal Trade Commission sued Rytr, an AI writing tool and content generator, accusing subscribers of using it to produce hundreds or thousands of reviews for garage door repair services.

Reported impact

Fake reviews have long plagued consumer websites such as Amazon and Yelp. The deceptive practice becomes a bigger problem for consumers during the holiday shopping season, when many people rely on reviews to help them purchase gifts.

Fake reviews are found across e-commerce, lodging, restaurants, and services such as home repairs, medical care and piano lessons.

Index analysis

AI-infused text generation tools enable fraudsters to produce reviews faster and in greater volume, according to tech industry experts. The deceptive practice, which is illegal in the U.S., is carried out year-round but becomes a bigger problem during the holiday shopping season.

Governance controls

The Federal Trade Commission this year banned the sale or purchase of fake reviews and sued Rytr for offering a service that could pollute the marketplace with fraudulent reviews.

Classification

Category
Fraud, scams and manipulation
Industry
Consumer products
Country
United States
Harm status
Actual harm
Intent
Intentional
Timing
Unknown
Harm types
Economic or property, Public interest
Harmed
Consumers, Business, General public
Failure modes
Hallucination, Manipulation or dark pattern
Consequences
Regulatory investigation, Litigation
AI systems
ChatGPT, Rytr
Regulations
FCRA (cited)

Sources and evidence

This record was researched and written by the Index, based on the following original reporting.

heraldcourier.com
AI-generated fake reviews flood online marketplaces
denverpost.com
AI-generated fake reviews flood online marketplaces