"These AI-generated products look like quality items, which the scammers then pitch at affordable prices. When a user clicks on the ad, which the scammer paid Facebook to serve, they are sent to the thieves' e-commerce storefront. The consumer makes their purchase without realizing the item is a fake. They'll either receive a cheap imitation product, or never receive any item at all."
"According to a BBC investigation, consumers were scammed out of their money after falling for fake AI-generated images posing as C'est La Vie and Mabel & Daisy, family-run UK-based businesses selling products such as clothing and jewelry. The stores do not actually exist; the e-commerce site is connected to a warehouse in China that ships cheap knockoffs. The BBC heard directly from more than 60 people who fell victim to these scams after its report came out."
Highly desirable holiday items such as the new iPhone, Nintendo Switch 2, and specific KPop merchandise are being impersonated in AI-generated ads on Facebook. Scammers create realistic product images, pay for Facebook ads, and direct buyers to fraudulent e-commerce storefronts that link to Chinese warehouses shipping knockoffs or nothing at all. Victims reported purchases of fake or undelivered items, with a BBC investigation identifying dozens of victims and several fake family-run business storefronts. Generative AI lowers the barrier for creating convincing fakes, while the advertising platform continues to profit substantially from paid scam ads. Consumers should be cautious of unusually cheap deals.
Read at Mashable
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