AI-powered holiday shopping scams surge in Canada during peak season
Fraudsters are reportedly using artificial intelligence to carry out increasingly convincing scams against Canadian holiday shoppers through fake websites, phishing emails, deepfake videos, and malicious QR codes. Bank of Montreal's financial crimes head expects fraudulent activity to surge during the Black Friday and Cyber Monday period, noting that over two million Canadians have been scammed in past holiday seasons and AI is making fraud easier to execute and harder to detect.
What happened
Fraudsters are using artificial intelligence to create convincing scams targeting Canadian holiday shoppers, including fake retailer websites, phishing emails, and deepfake videos impersonating trusted brands or influencers.
Emerging scam methods include embedding malicious links in QR codes found in ads, emails or packaging, and using fake influencer accounts and counterfeit products on social commerce platforms to lure shoppers into phishing traps. Digital pickpocketing using contactless payment devices to skim data is also rising.
Reported impact
More than two million Canadians have been scammed during past Black Friday and Cyber Monday events. Nearly three per cent of online shopping transactions in Canada during the Thanksgiving–Cyber Monday period last year were flagged as fraudulent, a 51 per cent increase from the previous year.
Fraudulent activity historically jumps by an average of 300 per cent during Black Friday week in Canada, and Larry Zelvin, head of Bank of Montreal's financial crimes unit, expects these numbers will increase further this year due to AI making scams easier to execute and harder to detect.
Index analysis
AI has lowered the barrier for committing fraud by allowing scammers to mimic trusted brands and voices with alarming accuracy. Zelvin stated that the number of fraud victims he is encountering is far greater than any other time in his career, driven by AI making scams more convincing and harder for consumers to distinguish from legitimate sites.
Governance controls
Bank of Montreal recommends consumers verify URLs and look for HTTPS security indicators, go directly to retailer websites rather than click on links in emails or text messages, and use credit cards for greater fraud protection. Consumers are advised to be more skeptical and cautious when shopping online during the holiday season.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.