The Rise of AI-Assisted Fraud

A new ‍scam is‍ emerging where fraudsters ‌are leveraging artificial intelligence to generate images ⁤depicting ​damaged merchandise. These fabricated images are then used to falsely claim refunds ‍from retailers, as reported by Wired on December 28, 2025.

The scheme appears to be originating ​from, and heavily⁣ concentrated​ in, China. The use of AI‍ allows scammers ⁣to create convincing visual evidence of product defects without actually possessing⁢ damaged goods, considerably lowering the risk and cost associated with traditional‍ fraud.