A report in the UK has highlighted an example of a ghost store, Seren Cardiff Jewellery, which claimed to be a Cardiff-based business holding a closing-down sale with discounts of up to 80 per cent. The site appeared professional, displaying reviews, a 30-day money-back guarantee and secure payment options.
The BBC Wales report featured testimony from a variety of consumers who were ‘ripped off’ by this business. Among them Lowri Ann from Cardiff, who purchased earrings and a necklace, believing she was supporting a local business. The jewellery never arrived, and her attempts to contact the company were unsuccessful.
"The jewellery looked beautiful, and everything was heavily discounted. There was a message on the website saying they had to close because of the cost-of-living crisis, so I decided to buy,” she said.
She added that, despite usually being able to spot scams, the website appeared convincing. Another victim, Finnley Idris, found the website while searching for a local birthday gift for his girlfriend. He believes AI-generated content requires stronger regulation.
"AI has made it far too easy to create websites that look completely legitimate,” he said.
"Now it feels like you have to question everything you see online."
After several weeks without receiving his parcel, he ran a reverse image search and realised he had been scammed when the images appeared on other websites. The website was taken down after BBC Wales contacted the company, which did not respond to requests for comment.
The UK Government requires companies to protect users from illegal fraud under the Online Safety Act, including AI-generated scams. From next year, major online platforms in the UK will have additional duties to protect users from such incidents.
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