TLDR: A recent global survey highlights a growing trend of online shoppers utilizing AI tools, which, while enhancing convenience, simultaneously introduces sophisticated new fraud risks for retailers. The widespread availability of AI is empowering cybercriminals, making fraud detection more challenging and eroding consumer trust in digital platforms.
The digital commerce landscape is undergoing a significant transformation as a growing number of online shoppers integrate Artificial Intelligence (AI) into their purchasing journeys, a trend that is simultaneously creating unprecedented fraud risks for retailers. Recent findings from a global survey conducted by The Harris Poll for Mastercard, involving 13,077 adults across 13 countries, reveal a stark reality: seven out of ten people now find it harder to secure their information on digital platforms than in their own homes.
This surge in AI adoption by consumers, who are increasingly using large language models (LLMs) like ChatGPT, Claude, Gemini, and Perplexity for product research, price comparisons, and even transaction completion, is reshaping the very nature of online shopping. However, this innovation comes with a significant downside. Eyal Elazar, VP of Market Intelligence & Product Marketing at Riskified, notes, “The emergence of Agentic AI shopping agents is introducing new fraud risks and disrupting the delicate balance between innovation and secure commerce.”
The scale of the cyber threat is alarming. Last year alone, losses and damages from cyberattacks reached an estimated $9.5 trillion, positioning cybercrime as the world’s third-largest economy. This growth is largely fueled by the widespread availability of AI tools that supercharge scams and accelerate attacks. The survey indicates that 76% of respondents are more concerned about cyber risks impacting their lives than they were two years ago, with nearly 60% feeling that being scammed online is simply inevitable.
Retailers bear a substantial burden from this escalating threat. A significant 66% of consumers stated they would cease shopping entirely at a retailer where they experienced transaction fraud, a consequence that could disproportionately affect small businesses with fewer resources to manage such threats and rebuild customer confidence. AI shopping agents, while beneficial for attracting new customers, also pose new threats by enabling massive automated purchases, malicious exploitation of promotions and coupons, and undermining pricing strategies and customer trust.
Fraud detection is becoming increasingly complex. Data suggests that traffic originating from LLMs is twice as risky compared to other sources, making it harder for traditional systems to identify and prevent fraud. Cybercriminals are leveraging advanced tools, such as WarmGPT, to create synthetic identities and execute sophisticated attacks, including automated purchases with stolen credit cards that bypass standard detection mechanisms.
Generational differences in cybersecurity perception are also evident. The Mastercard survey found that younger individuals, specifically 43% of Gen Z and 39% of millennials, are more likely to have engaged with scam attempts, despite a higher reported confidence in their ability to identify threats compared to older generations. Furthermore, a significant 59% of respondents would feel ashamed if they fell victim to an online scam, highlighting a pervasive stigma that often leads to underreporting.
Johan Gerber, Global Head of Security Solutions at Mastercard, emphasized the critical need for trust in the digital realm: “If people feel more vulnerable in the virtual world than in their own homes, that signals that the trust in the technology that governs our lives is under threat – and there’s work to be done to achieve the full promise of the digital economy.” He added, “Trust can’t be an afterthought. It must be the foundation of our digital lives.”
Addressing these evolving threats requires a proactive and integrated approach. Merchants must adopt intelligent real-time fraud detection systems, agent behavior monitoring, and robust protocol verification. Advanced technologies, including machine learning and real-time behavioral analytics, are becoming indispensable for identifying emerging fraud patterns unique to AI agents. Collaboration between risk management and business teams is crucial for precise risk handling, revenue continuity, and preserving customer trust.
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While AI presents formidable challenges, it also offers powerful defense mechanisms. Strategic investment in innovative and intelligent systems can transform AI agents into tools that make digital commerce safer and more trustworthy. However, consumers must also remain vigilant, exercising caution against phishing and other malicious tactics. As Gerber concludes, “An AI-powered economy can only usher greater growth and deeper connection if we work together to make trust and security inseparable from innovation.”
