Warning: Counterfeit Goods on Online Marketplaces on the Rise

Online shopper Elaina Pontarelli from Timmins, Ont., warns others after being scammed by a counterfeit Dyson hair dryer purchased online. Cybersecurity expert Claudiu Popa says recent advances in AI have supercharged online scammers, allowing them to produce scams 100 times faster than before. Popa advises being wary of deals that seem too good to be true and says platforms like Amazon and Facebook Marketplace face challenges in detecting and removing scammers.

In recent years, the rise of artificial intelligence (AI) has significantly transformed the landscape of online scams, making them more sophisticated and prevalent. A recent case involving Elaina Pontarelli, a resident of Timmins, Ontario, highlights the growing threat posed by counterfeit goods and the challenges faced by consumers and platforms alike.

Pontarelli purchased a second-hand Dyson hair dryer online for $260, a price that was approximately half the cost of a new model. However, after a year, the hair dryer stopped working, and a local repair shop revealed it was a counterfeit. The incident underscores the growing issue of counterfeit goods, which can pose significant risks to consumers, especially when it comes to critical items like medical devices [1].

Claudiu Popa, co-founder of the KnowledgeFlow Cybersafety Foundation, attributes the surge in counterfeit goods to recent advances in AI. He notes that AI tools enable scammers to generate scams 100 times faster than before, making it easier for them to evade detection and removal efforts by platforms like Amazon and Facebook Marketplace [1].

Popa advises online shoppers to be cautious of deals that appear too good to be true, as these often indicate a potential scam. He emphasizes the importance of verifying the authenticity of products and being skeptical of listings that do not meet expectations. Additionally, Popa points out that law enforcement agencies are often reactive, only intervening after a victim has fallen prey to a scam, and platforms face challenges in distinguishing between legitimate and counterfeit products [1].

The threat posed by AI-driven scams is not limited to counterfeit goods. A recent FBI warning highlights a scam targeting seniors, known as the Phantom Hacker Scam, which has cost Americans over $1 billion since 2024 [2]. The scam operates in three phases, involving tech support impostors, financial institution impostors, and US government impostors, all of which use AI to personalize their tactics and target specific interests [2].

Pete Nicoletti, chief information security officer at Check Point, warns that victims of the Phantom Hacker Scam rarely recover their funds, even after reporting the theft to authorities. He recommends that families have discussions with their loved ones about this scam and the importance of protecting personal data and financial information [2].

In conclusion, the rise of AI has made online scams more prevalent and sophisticated, posing significant risks to consumers. As AI continues to evolve, it is crucial for online shoppers, particularly seniors, to remain vigilant and informed about the latest scams and the steps they can take to protect themselves.

References:
[1] https://www.cbc.ca/lite/story/1.7617032
[2] https://www.foxnews.com/us/fbi-warns-seniors-about-billion-dollar-scam-draining-retirement-funds-expert-says-ai-driving