One in three Indians duped by festive scams as AI, deepfake frauds surge

Nearly one in three Indians has faced festive season fraud as AI-powered scams, deepfake celebrity endorsements, and phishing cons target Diwali shoppers

As Diwali draws close and people hit online stores for shopping, the incidents of cyberattacks have risen in tandem, with a cybersecurity firm claiming that nearly one in three Indian consumers have fallen victim to holiday-related scams.

 

And 37 per cent have reported financial losses, McAfee said.

 

“The festival season is a time of joy and giving, but it has also become a target for scammers. As technology evolves, so do the threats, with AI-driven scams creating new risks for online shoppers,” said Pratim Mukherjee, senior director of engineering, McAfee.

 

“By taking simple steps like checking websites, securing devices, and staying alert, we can outpace bad actors and ensure the spirit of the season remains untarnished,” he said.

   

Fraudsters are deploying increasingly sophisticated tactics, including deepfake celebrity endorsements, phishing texts, scam emails, and one-time password (OTP) cons, to exploit the seasonal surge in online spending.

 

Festival shopping in India is shifting online, with e-commerce now the preferred way to shop during the festive season because of better discounts (64 per cent), convenience (60 per cent), more variety (52 per cent), and faster delivery (51 per cent).

 

This shift also highlights the growing reliance on mobile-first consumption, with 77 per cent of shoppers now making purchases via smartphones. Younger consumers aged 25-44 have emerged as the heaviest users of online platforms overall, fuelling India’s digital shopping boom. 

 

Alongside this digital momentum, shoppers face a familiar seasonal risk: scammers who try to exploit holiday demand. In fact, 96 per cent of Indians express deep concern about online scams, and for good reason.

 

About 72 per cent are more concerned about AI-driven scams than they were last year. Around 91 per cent report received suspicious shopping-related messages, including fake ‘gift card wins’ (49 per cent), ‘limited-time offers’ (40 per cent), and ‘refund notifications’ (27 per cent).

 

On average, Indians face 12 scam attempts per day, spanning text messages, phishing emails, and fraudulent social media ads. Particularly concerning are deepfake celebrity endorsements and fake e-commerce websites, making it harder than ever to distinguish real from fake.

 

The impact of these scams extends beyond financial losses. Among those scammed, 91 per cent reported feelings of anger, anxiety, or embarrassment, yet 28 per cent rarely share their experiences publicly.

 

In response to these risks, the report said 98 per cent of Indians plan to adopt proactive measures to protect themselves, including shopping on trusted websites (55 per cent), using strong passwords (53 per cent), and verifying suspicious communications directly with retailers.