New York warns of AI-generated scams during holiday shopping season
New York state officials warned consumers about AI-powered shopping scams ahead of Cyber Monday 2025, noting that scammers are increasingly using artificial intelligence to create fake websites. The warning came as New York reported over $17 million in online shopping scam losses in 2024.
What happened
The New York Division of Consumer Protection warned consumers ahead of Cyber Monday in November 2025 about the increasing use of artificial intelligence in shopping scams. Scammers are creating AI-generated fake websites designed to lure shoppers to fraudulent online stores, according to consumer protection experts cited in the warnings.
Reported impact
In 2024, New York consumers reported over $17 million in losses from online shopping scams and over $41 million in losses from business impostor schemes, according to data collected by the Federal Trade Commission.
Governance controls
New York laws signed by Governor Hochul require online stores to conspicuously disclose refund policies and algorithmic pricing to consumers. The Division of Consumer Protection provided tips to help New Yorkers shop safely, including verifying sellers, researching company reputation, and being cautious about unfamiliar retailers.
Classification
Sources and evidence
This record was researched and written by the Index, based on the following original reporting.