TikTok Shop and the Rise of AI-Driven Online Fraud
The latest wave of fraud on marketplaces has a new key player: generative artificial intelligence.
The rise of TikTok Shop, which promised to revolutionise the shopping experience with videos and viral content, has been quickly tarnished by an explosion of fake listings, non-existent products and phantom sellers, all facilitated by AI.
Industrial-Scale Fraud: The Role of Generative AI
We are no longer dealing with small-time amateur scams. Nicolas Waldmann, head of governance at TikTok Shop, put it bluntly:
Scammers use generative AI models to create hyper-realistic images, SEO-optimised descriptions and videos that mimic the style of the original creators. Nowadays, creating an entire brand—from the logo to fictitious reviews—can be done in minutes and with barely any trace.
The figures speak for themselves. According to a report recently published by the company, in the first half of 2025 alone, TikTok Shop blocked more than 70 million fraudulent products and removed 700,000 sellers for policy violations, an increase of 40% on the previous period. The reason: organised gangs have industrialised fraud thanks to AI tools accessible to any user.
The New Scammers’ Playbook
Reports show the same pattern: scammers create shops from scratch, filled with generated catalogues, packaging and short, AI-narrated videos. They test prices, scale up ads and run detailed A/B tests with bots, optimising their chances of attracting customers and bypassing the platforms’ conventional filters. Even the documents needed to open seller accounts are manipulated with AI, making preventative action difficult.
Added to this is the proliferation of up to 15,000 fraudulent domains that mimic the appearance of TikTok Shop. Designed to install malware and steal cryptocurrencies, especially among young shoppers motivated by impossible discounts. These attacks have become increasingly sophisticated, now including phishing campaigns with completely false content.
The Challenge of Regaining Trust in the Platform
The impact goes beyond financial losses. Massive-scale fraud erodes trust in the channel and the brand, creating a domino effect throughout the industry. If a user loses money buying a non-existent product, they are unlikely to trust the platform again. And if viral scam cases spread across social media, the perception of insecurity multiplies, affecting legitimate businesses.
Globally, the counterfeit goods trade already accounts for a significant percentage of total global online sales, causing damage in terms of reputation, revenue and tax collection.
TikTok Shop’s reaction has been to adopt a “hunter vs. hunter” strategy: the platform uses artificial intelligence to combat fraudulent AI. Its system combines computer vision algorithms, natural language models to detect misleading slogans, and graphical analysis of accounts to identify suspicious patterns before ads reach the user.
In addition, the platform is intensifying identity checks and applying cross-cutting penalties that make it difficult for offenders to return. However, the team itself acknowledges that this is a constantly evolving contest, very similar to the battle against spam and malware seen in other digital sectors in recent years.
What More Can Be Done? Proposed Solutions and Opportunities
Experts and brands are promoting a multi-layered defence that combines different authentication profiles, more demanding onboarding, escrow payments and enhanced verification for new sellers.
On the regulatory side, international bodies are demanding that marketplaces take much more proactive action and provide greater transparency in their fraud reports.
On a technical level, there is a demand for greater collaboration with rights holders and the development of standard authenticity signals: from the use of product serialisation to verifiable digital receipts.
Education and Prevention: The Best Antidote
Ultimately, technology and training go hand in hand to safeguard the future of e-commerce. Faced with increasingly sophisticated scams, incorporating AI systems capable of analysing thousands of patterns in real time is only the first step: the key lies in continuous improvement, learning from user behaviour and adapting defences as fraudsters’ tactics evolve.
But prevention does not just depend on tools. Creating a digital culture in which consumers can identify warning signs and sellers collaborate with each other and with the platforms is essential to minimise risks. Investing in adaptive monitoring and smart verification helps to protect every transaction, without sacrificing the user experience.
The battle against fraud on TikTok Shop and other platforms has only just begun. If the current contest between artificial intelligence and cybercrime teaches us anything, it is that only constant innovation and joint effort will make it possible to maintain trust in digital commerce and create safe spaces for consumers and brands.
