Panda SecurityScammers are now using artificial intelligence to build convincing, professional-looking websites in minutes. Rather than cloning ecommerce giants like Amazon, criminals are posing as real small businesses to sell counterfeit goods or steal your money.
Savvy shoppers need to know how this works, and what to look for, before clicking “buy.”
Key takeaways
- AI tools can clone a legitimate business website in minutes, with no coding skills required.
- There are more than 28,000 deceptive website domains in use, each attempting to defraud visitors.
- A 2025 survey found 36% of Americans who purchased from a fraudulent online store received no refund.
- Deloitte estimates AI-assisted scams could drive global losses to $40 billion by 2027.
The New Face of Online Fraud
Building a fake website once required technical skill and time. Today, generative AI tools like Vercel’s v0 allow anyone to clone a site by typing a simple prompt.
The AI tool replicates design, layout, SEO structure, and even trust signals like cookie banners and return policy pages. The clones are so good they are indistinguishable from the real thing to a casual visitor.
One report suggests that AI-built sites now accounting for 6–7% of all phishing infrastructure. Global accountancy firm Deloitte expects the problem to get much worse, with projected losses of $40 billion by 2027.
Small Businesses Are Prime Targets
Historically, fraudsters cloned household names like PayPal or Amazon. AI has made it just as easy to impersonate a local boutique or artisan shop, the sorts of businesses that lack the resources to monitor for fakes. An Associated Press investigation found scam sites with elaborate AI-generated backstories: touching stories about twin sisters, a widowed mother, or a family studio forced to close, all designed to trigger an emotional impulse buy.
One victim, discovered scammers had stolen her store’s name to sell cheap Chinese imports, flooding her with negative reviews from customers who never ordered from her in the first place. Speaking to the Associated Press, marketing professor Sethron Ketron of St. Thomas University explains: “Scammers exploit AI-generated photos… if you’re not vigilant, it’s easy to overlook.”
What These Sites Look Like
Fake storefronts are carefully built for believability. They feature AI-generated product images that mimic handcrafted aesthetics, like Nordic sweaters that look hand-knitted, ceramics that appear artisan-made. However, these images are stock photos or AI composites.
Despite claiming decades of family heritage, a quick check of domain registration records often reveal the site was created weeks ago, registered through a Chinese hosting provider.
Payments to these sites are processed before any questions arise. Once a customer pays, they either receive a cheap imitation, nothing at all, or find the site has vanished. Over 82% of phishing emails accompanying these sites are now AI-written too.
The Scale of the Problem
The financial damage is significant. UK Finance reported £100 million in losses to AI-amplified scams in just the first half of 2025. In the USA, the FTC took action against AI ecommerce fraud schemes including Ascend eCommerce and FBA Machine, the latter linked to $15.9 million in consumer losses.
Clearly any internet user is at risk if they are not actively looking for the signs of a fraudulent website.
How to Spot and Stop AI Fakes: A Step-by-Step Guide
- Check domain registration: Use a free tool like ICANN Lookup or Whois.com. If a site claims decades of history but was registered last month, or is registered in a country that doesn’t match its claimed origin, treat it as a red flag.
- Reverse-search product images: Use Google Images or TinEye to check whether product photos appear elsewhere. AI-generated images often show unnatural hands, odd reflections and shadows, or slight facial distortions on close inspection.
- Verify contact details independently: Search the business name on Google separately from the link you were given. Legitimate businesses have a consistent, verifiable presence. Sites that mention “global fulfillment partners” with no physical business address are a warning sign.
- Check the reviews: A cluster of generic, five-star reviews posted on the same day is a scammer hallmark. Cross-reference reviews on Trustpilot or the BBB.
- Avoid non-standard payment methods: Legitimate retailers accept credit cards with buyer protections. Requests for wire transfers, cryptocurrency, or gift cards should stop you in your tracks.
Stay One Step Ahead
AI scams are growing faster than most consumers realize, but they still depend on victims acting before thinking. Taking 60 seconds to verify a site’s legitimacy using the instructions above can save you from becoming one of millions defrauded every year. Protect your personal data with reputable internet security software, like Panda Dome and trust your instincts: if an offer feels engineered to make you act without thinking, it probably was.
