As the holiday shopping season ramps up, the New York State Department of State’s Division of Consumer Protection is reminding New Yorkers to stay vigilant when buying online. While new laws signed by Governor Hochul require online retailers to clearly disclose refund policies and the use of algorithms in setting prices, officials say evolving scams — especially those fueled by AI — pose growing risks for consumers.
“Don’t take the clickbait while browsing online this holiday season,” 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. These tips from the Division of Consumer Protection will keep you one step ahead of these fraudsters as you do your holiday shopping.”
Rising Threats: AI-Generated Websites and Counterfeits
Scammers are increasingly creating AI-generated fake websites designed to mimic real online stores. In 2024 alone, New York consumers reported more than $17 million in losses from online shopping scams and over $41 million from business imposters, according to Federal Trade Commission data.
Counterfeit products are also on the rise. U.S. Customs and Border Protection seized nearly 79 million counterfeit items in fiscal year 2025, including clothing, electronics, toys and medications — many of which pose safety hazards.
Tips to Avoid Online Shopping Scams
Verify the Seller
- Research unfamiliar sellers before buying.
- Check reviews and confirm the company’s reputation.
Watch for Fake AI-Generated Websites
- Inspect URLs carefully; scammers often swap letters or add dashes to mimic real brands.
- Remember: they can copy a website, but not the official URL.
Be Careful When Shopping Through Social Media
- Fake accounts use unrealistic discounts, fake reviews and AI-generated images.
- Don’t purchase through social media links. Open a new browser and go directly to the retailer’s official website.
- Search the seller’s name plus the word “scam” to check for complaints.
Beware of Third-Party Seller Scams
- If redirected to a third-party vendor, read seller policies closely.
- Trusted websites may not guarantee products sold through outside vendors.
Look for AI-Generated Product Images
- Check photos for odd details: blurred areas, inconsistent lines or distorted objects.
Read Product Descriptions and Terms
- Review fine print to understand exactly what you’re buying.
Learn to Spot Fake Reviews
- Red flags include:
- No specific product details
- Many reviews posted in a short time
- Reviewer accounts that look new or vague
Check Return Policies
- Sellers must disclose return terms. Avoid vague or restrictive policies.
Watch for Algorithmic Pricing
- New York law requires businesses to notify consumers when personal data is used to set prices.
- Consider comparison shopping if prices seem unusually high.
Tips to Avoid Buying Unsafe or Counterfeit Products
Inspect Packaging
- Look for spelling errors, sloppy packaging, or missing manufacturer details.
Scan the QR Code
- Many products include QR codes linking to authenticated product information.
Buy from Authorized Sources
- Purchase from official brand websites or verified retailers.
Tips for Safe Online Payments
Check Website Encryption
- Make sure the website begins with https and displays a lock symbol.
Do Not Save Payment Information
- Always re-enter card details instead of saving them on a retailer’s site.
Choose Safe Payment Methods
- Credit cards provide better fraud protection than debit cards.
- If you suspect you paid a scammer, immediately contact your bank or credit card company.
