Ahead of Cyber Monday the New York State Division of Consumer Protection urges shoppers to stay alert as AI-generated scams spread across online marketplaces

New York – As Cyber Monday approaches and millions of New Yorkers prepare to hunt for deals online, state officials are urging shoppers to slow down, stay alert, and take a few extra steps to protect their wallets. The New York State Department of State’s Division of Consumer Protection is sounding the alarm on a new wave of digital threats—scams powered by artificial intelligence, increasingly deceptive counterfeit products, and fraudulent sellers hiding behind polished but fake websites. With the holiday shopping season now in full swing, the agency is pushing out detailed guidance to help consumers navigate an online marketplace that feels more unpredictable every year.

The holidays are supposed to be a time of cheerful buying, gift-giving, and bargain hunting. But in recent years, the digital side of the season has become just as well-known for criminals attempting to exploit the rush. As online shopping becomes more central to how people celebrate, so too have the scam tactics grown more advanced. This year, officials say, AI-generated fraud has accelerated that trend even more, creating conditions where shoppers may have trouble distinguishing between a legitimate retailer and a convincing imitation.

State leaders emphasize that although newly enacted laws—signed earlier this year by Governor Kathy Hochul—require online stores to make their refund policies more visible and to disclose any use of algorithms in pricing, regulations alone cannot block every scam. What matters most is awareness: knowing the red flags, spotting suspicious behavior early, and taking a few moments to confirm that a seller or product is genuine. And because Cyber Monday is often one of the biggest online shopping days of the year, the Division of Consumer Protection has chosen this moment to reinforce that message with urgency.

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“Don’t take the clickbait while browsing online this Cyber Monday,” said Secretary of State Walter T. Mosley. “There are more and more fake websites and scammers out there trying to take advantage of New Yorkers purchasing gifts for their loved ones this time of year. These tips from the Division of Consumer Protection will keep you one step ahead of these fraudsters as you do your holiday shopping.”

Officials say these scams are no longer limited to misspelled websites, questionable product photos, or sellers who disappear after taking a payment. In 2024 alone, New York consumers reported more than $17 million lost to online shopping scams. Even more staggering, the Federal Trade Commission recorded over $41 million in losses statewide from business imposters—criminals posing as major retailers, delivery companies, or customer service representatives. When AI tools are involved, the fake storefronts and synthesized product descriptions can look more legitimate than ever, making it easier for scammers to fool victims.

Counterfeit products add another layer to the problem. U.S. Customs and Border Protection reported that nearly 79 million counterfeit items were seized in fiscal year 2025. Many of these knockoffs were clothing, consumer electronics, toys, and even medications. Aside from draining shoppers’ budgets, some of these items pose serious safety hazards—especially products intended for children, such as toys with unsafe parts or wiring that fails to meet U.S. safety standards.

Amid all this uncertainty, the Division of Consumer Protection is offering a detailed list of tips to help New Yorkers protect themselves during this busy shopping period. Their guidance covers everything from identifying fake sellers to choosing safer payment methods and recognizing algorithmic pricing disclosures.

One of the most basic—but most powerful—steps is simply verifying the seller. If a consumer is unfamiliar with a retailer, officials recommend doing research first. That could mean searching the company’s name alongside words like “review,” “complaints,” or “scam,” or reading through detailed customer experiences on independent review sites. Shoppers should be cautious when a product page seems too new, too vague, or lacks authentic feedback from real customers.

Another problem the Division is highlighting this year is the surge in AI-generated websites designed to mimic well-known brands. These pages often include logos, product images, and design layouts that look nearly identical to legitimate stores. The key, experts say, is in the website address. Scam sites frequently use domain names that contain subtle misspellings, swapped letters, added dashes, or extra characters that often go unnoticed. A fake version of a brand might replace an “o” with a zero, or add unusual extensions at the end of the URL. While scammers can replicate almost anything on a page, officials note that they cannot replicate the real company’s official URL—and that gives consumers a fighting chance to spot the fakes.

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Social media has also become a major source of fraudulent ads and misleading posts, especially during the holidays when sponsored content is everywhere. Scammers often promote deals that appear to be once-in-a-lifetime discounts, paired with professional-looking product images that may themselves be AI-generated. Many consumers fall into the trap of buying directly through social media links without verifying where the link leads. The Division strongly advises opening a separate browser window and navigating directly to the retailer’s website instead of buying from a social media ad or link. Before making a purchase from a company discovered online, shoppers should also search the name with the word “scam” to see if others have filed complaints.

Third-party seller scams are another major concern. Online marketplaces often include thousands of vendors, some of whom may look legitimate on the surface but operate with little accountability. Consumers redirected away from a trusted major retailer to a third-party store should slow down and check the seller’s posted policies and customer comments. Warranties, return protections, and customer service options may not extend to these vendors. A sale on a well-known platform does not automatically mean the seller is vetted.

On top of that, the Division says shoppers should scrutinize product photos more carefully than ever. AI-generated images can look nearly flawless at first glance, but they often include small inconsistencies: objects that fade strangely, shadows that seem unrealistic, edges that blur, or patterns that do not match. These imperfections can indicate a product that doesn’t exist or a seller who is hiding behind stock visuals instead of real photos.

In addition, product descriptions and fine print matter. Reviewing these details can prevent misunderstandings or unexpected limitations. Vague descriptions, unclear material specifications, or oddly phrased text may hint that a product is not genuine or that a seller is not reputable.

Fake reviews present an even more complicated challenge. Many fraudulent sellers flood their own product pages with glowing but artificial reviews generated by bots or AI tools. According to officials, real reviews usually contain specific details about the product, but fake ones tend to be generic, short, or overly enthusiastic without substance. Clusters of reviews posted within the same narrow timeframe can also be a red flag. Consumers should consider checking multiple platforms for feedback rather than relying on one site.

Another crucial step is reviewing return policies. Sellers must disclose these policies clearly, including any deadlines or costs associated with sending an item back. If a seller’s policy seems unusually restrictive—or if it’s missing entirely—consumers should be cautious. Some scam sites hide behind nonexistent return processes, making it almost impossible for buyers to get refunds.

One newly emphasized point in New York is algorithmic pricing. Under state law, businesses must notify consumers if they use personal data and automated systems to determine the price of an item. If a site issues such a disclosure, consumers should consider shopping around, especially if the price seems unusually high. Awareness of this practice helps buyers make more informed choices.

But avoiding scams is only half the equation. Shoppers also need to prevent buying unsafe or counterfeit goods. Inspecting the packaging is an easy first step. Misspellings, sloppy printing, mismatched colors, or missing origin information often hint at counterfeit products. Many legitimate items now include QR codes that link directly to authentication information. Scanning these codes can offer confirmation that a product is genuine and safe to use.

Buying directly from authorized sources is another straightforward way to stay protected. When possible, consumers should purchase through the official brand website or from retailers listed as authorized sellers on that brand’s page. This reduces the likelihood of receiving a low-quality counterfeit.

Once shoppers are confident in the legitimacy of a product, they also need to pay attention to payment security. Before entering credit card details on any site, it is essential to check whether the URL begins with “https” and whether a closed lock icon appears in the address bar. These indicators confirm that the connection is encrypted and that the site has a digital security certificate.

Officials warn against saving credit or debit card numbers on online shopping accounts. While saving a card may speed up checkout, it also increases the risk if a site is hacked. Entering the card manually each time is safer.

Credit cards are also recommended over debit cards for online purchases. Credit cards generally provide more robust fraud protection, meaning consumers may have an easier time disputing unauthorized charges or recovering lost funds. If a shopper realizes they have paid a scammer, they should contact their bank or credit card company immediately. The sooner fraud is reported, the more options consumers have for assistance.

The Division of Consumer Protection highlights its role as a resource for residents who encounter issues with online purchases. The agency offers voluntary mediation for consumer complaints involving businesses, including those related to refunds, undelivered products, or disputed charges. The Consumer Assistance Helpline, available Monday through Friday, provides shoppers an avenue to seek help when they cannot resolve a problem on their own.

The Department also encourages New Yorkers to stay connected through their social media channels and weekly consumer tips. By following the agency on platforms like Facebook, X, and Instagram, residents can receive ongoing guidance about emerging scams, how to recognize fraud, and how to navigate complex digital marketplaces safely.

As Cyber Monday draws near, and as shoppers from across the state prepare to browse endless lists of deals, state officials want consumers to slow down, take precautions, and make informed choices. The threats may be evolving, especially with AI-powered fraud entering the picture, but with deliberate steps and heightened awareness, New Yorkers can protect both their money and their holiday plans.

In the end, officials say, the holiday season should bring joy—not headaches created by scams. And while the online marketplace is bigger and more complicated than ever, New Yorkers armed with the right information can navigate it with confidence and caution.