Ts. Dr. Raihani Mohamed

Senior Lecturer, Core Researcher

Institute for Social Science Studies (IPSAS) & Faculty of Computer Science and Information Technology, Universiti Putra Malaysia (UPM)

Generative Artificial Intelligence (Generative AI) is no longer merely intelligent software used to generate text or simple images. Within a remarkably short period, the technology has evolved into a highly powerful tool for visual and voice manipulation. While local media coverage previously focused largely on deepfake issues in the context of phone scams or political agendas, the latest wave of AI-driven fraud tactics has now begun to infiltrate an area that directly affects consumers’ finances: the e-commerce sector.

The world of online business is built upon one fundamental pillar: trust. Unfortunately, the increasingly sophisticated capabilities of today’s generative AI are beginning to undermine this foundation through new deceptive tactics that remain relatively unfamiliar to the public.

One of the latest emerging threats is AI-powered live-streaming fraud, or Live Commerce Deepfakes. Criminal syndicates are now capable of cloning the faces and voices of well-known influencers or popular sellers to conduct live-streaming sessions around the clock. Buyers are targeted with discounts that appear “too good to be true”, while responses and interactions in the chat are automatically generated by AI chatbots capable of communicating in local languages and highly natural-sounding accents. Without realising it, consumers may actually be conducting transactions with entirely fabricated entities.

The integrity of product reviews has also been compromised. In the past, fake reviews could often be identified through awkward or unnatural wording. Today, generative AI can produce thousands of convincing and casually written reviews, complete with fabricated “before and after” testimonial images and automatically generated fake payment receipts. As a result, honest local businesses may suffer financial losses as consumers experience consumer fatigue and gradually lose confidence in e-commerce platforms.

In confronting this constantly evolving wave of AI-driven fraud tactics, society must acknowledge a harsh reality: once a person has been deceived into transferring money, recovering those funds can be extremely difficult. Modern cybercriminals employ sophisticated methods that involve rapidly moving funds through thousands of mule accounts and converting them into cryptocurrencies within seconds. Although Malaysia has established mechanisms such as the National Scam Response Centre (NSRC) and the Malaysian Communications and Multimedia Commission (MCMC), recovering funds that have already fallen into the hands of criminal syndicates remains an extremely challenging process.

Therefore, the narrative surrounding efforts to combat AI-enabled fraud can no longer revolve around “placing 100 per cent of the blame on the authorities or platform providers”. Legal regulation and banking security systems serve as the first line of defence, but consumer awareness and vigilance remain the final line of protection.

Today’s e-commerce buyers must shift their mindset from being passive shoppers to becoming cyber-literate consumers. A healthy level of scepticism should be practised, and the principle that “seeing is not necessarily believing” must be firmly embraced. Before clicking the ‘Pay’ button, consumers should cross-check the authenticity of the online store, review the account’s history, and verify the legitimacy of payment links.

In conclusion, AI is an extremely fast-evolving technology, and cybercriminals will continue to seek opportunities to exploit its capabilities. Combating deepfakes in e-commerce is therefore a shared responsibility. While the authorities are responsible for creating a safer digital ecosystem, it is ultimately the wisdom, vigilance, and careful judgement of consumers that will determine whether we become victims of technology or responsible and empowered digital consumers.

Date of Input: 07/08/2026 | Updated: 07/08/2026 | alyarahim