The news: Consumer concerns over AI scams are rising, as three-quarters of UK adults believe AI advancements have made online scams more difficult to identify, per Barclays.

• Just 36% of UK consumers are confident they could spot an AI scam.
• Nearly half (48%) of shoppers read reviews on products, yet 47% think AI leaves fake reviews.

The challenge: Online scams are pushing some consumers away from ecommerce altogether. One-third (34%) of UK Gen Zers say they avoid online shopping over fear of scams—more than any other generation, per Barclays. That’s partly because 35% of Gen Zers have been scammed or know someone who has, compared with 15% of baby boomers.

Considering US Gen Zers’ expected holiday budgets are 23% smaller this year than in 2024, per PwC, a global pullback from online shopping could hurt retailers’ bottom lines, especially smaller online retailers that might lack brand awareness.

What brands should do: As consumers wade through scams to find legitimate retail sites, ecommerce brands need to stand out.

• Review brand search results. Ensure search and AI results are accurate and comprehensive.
• Monitor social mentions. Consumers may be researching brand legitimacy, and sites like Reddit are a common validator. If posts are negative, address those concerns in comments to boost brand affinity.
• Earn trust through About and FAQ pages. Ensure that they are free from errors and clearly define the company and its products. Bonus: Those pages can help AI engines surface the brand.
• Advertise with caution on social media. Considering the high number of known scams on social sites, consider links to owned sites over social-site sales.
• Use email and messaging prudently. While it’s common practice to establish a connection with consumers via these channels, scammers are also inundating inboxes. Personalization is key in these formats.

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