Scammers Turn to AI to Fake Product Damage for Refunds
Online shopping platforms in China are seeing a new kind of refund fraud, with scammers using artificial intelligence (AI) tools to generate or alter photos and videos that “prove” an item arrived damaged, missing, or spoiled.
The tactic targets categories where platforms and merchants often do not require returns before approving refunds, including fresh groceries, low-cost cosmetics, and fragile goods such as ceramic cups. Sellers and customer service workers have shared examples of suspicious “damage” images on Chinese social platforms, pointing to inconsistencies like unnatural tears in hard materials or unreadable shipping labels.
One case highlighted involved a merchant selling live crabs on Douyin who received videos claiming the crabs arrived dead or had escaped. The seller said details in the footage did not match reality, including inconsistencies in the crabs’ visible characteristics. A police notice shared by the seller said the buyer was detained for eight days after authorities determined the media was fabricated.
The pattern is not limited to China. Forter, a fraud detection company, said AI-doctored images in refund claims have risen 15%+ since the start of the year, and the trend is spreading as image-generation tools become easier to access.
Platforms and merchants are testing countermeasures, including automated review tools, but the core challenge remains speed: refund teams often process large volumes of claims and may not have time to examine every image closely. As a result, some sellers expect tighter refund rules, which could add friction for legitimate customers.
