Cybercriminals are increasingly using artificial intelligence (AI) to build near-perfect replicas of legitimate websites, making online scams harder to spot and exposing more consumers and businesses to fraud, according to a Wall Street Journal report.
The trend was evident earlier this year after Joann Fabrics filed for bankruptcy for the second time in a year. Within days, fake websites with URLs like “joanndiscount.shop” began circulating, offering steeply discounted merchandise to trick shoppers into handing over credit card information. Customers who ordered through the fraudulent sites never received products but had their payment details compromised.
“The whole look and feel of the website was very similar to the real website,” Melanie McGovern of the Better Business Bureau (BBB) told the Journal. The BBB and cybersecurity experts say AI is lowering the barrier for scammers, who can now clone websites in minutes without coding skills.
Netcraft, a cybersecurity firm, has identified nearly 100,000 AI-assisted domains mimicking 194 brands across 68 countries. These impostor sites, it estimates, account for 6% to 7% of all phishing attempts worldwide. While major companies can detect and take down fraudulent sites quickly, small and mid-sized businesses often lack the resources to defend themselves.
“The scary thing is just how easy it is,” said Robert Duncan, vice president at Netcraft. James E. Lee of the Identity Theft Resource Center added that “any business today” could be a target.
Experts advise consumers to type official website addresses directly rather than clicking links in texts or emails, scrutinize web addresses for subtle misspellings, and remain cautious when browsing on mobile devices. With AI generating flawless text, traditional red flags like poor grammar or spelling errors are no longer reliable signs of fraud.
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