Consumers are facing a new wave of scams , many powered by artificial intelligence . As holiday shopping approaches , including Black Friday and Cyber Monday, Larry Zelvin, head of

Bank of Montreal (BMO)’s financial crimes unit, expects fraudulent activity to increase as AI makes it easier to carry out scams.

While “ frauds are bad all year round, ” they jump by an average of 300 per cent during Black Friday week in Canada. This year, AI may make things worse, Zelvin said.

“What’s about to hit us in the next few weeks, I think these numbers will go up quite a bit, because AI is a game changer in that it lowers the bar for anyone who wants to commit these frauds,” he said in an interview.

BMO said more than two million Canadians have been scammed during past Black Friday and Cyber Monday events.

Nearly three per cent of online shopping transactions in Canada during Thanksgiving–Cyber Monday last year were flagged as fraudulent, a 51 per cent increase from the previous year.

AI has made scams more convincing and harder to detect, Zelvin said. “Fraudsters can now mimic trusted brands and voices with alarming accuracy. Consumers need to be more skeptical than ever.”

He added that people are going to have a tougher time figuring out what is a legitimate site and what is not.

“I’ve been doing this for well over a decade, and the number of (fraud victims) I am talking to now is far greater than any other time in my career,” he said. “Again, it’s because of AI, and people, unfortunately, are falling for things that they may not have fallen for a year or two ago.”

The scams could look “absolutely picture perfect,” from impersonations of executives to false investment opportunities to heavy crypto scams, Zelvin said.

One emerging trend to look out for is when s cammers use AI to create fake retailer websites, phishing emails and deepfake videos that impersonate trusted brands or influencers.

Another is when f raudsters embed malicious links in QR codes found in ads, emails or packaging. Fake influencer accounts and counterfeit products on TikTok Shop also lure shoppers into phishing traps.

Digital pickpocketing is also on the rise. This is when c riminals use contactless payment devices to skim data from phones or wallets without physical contact.

BMO said there are some tips consumers can follow to protect themselves from fraud this holiday season:

  • Verify URLs and look for HTTPS security indicators.
  • Go directly to retailer websites rather than click on links in emails or text messages.
  • Use credit cards, which offer stronger fraud protection than debit or payment apps.
  • Be skeptical of urgency. “Limited time offers” are a common scam tactic.
  • Research unfamiliar sellers before buying, especially on social platforms.

“If a deal looks too good to be true, it probably is,” said Zelvin. “Slow down, verify the source, and don’t let urgency override caution.”

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