Australians warned over AI-driven scams ahead of Christmas sales

Australian shoppers are being urged to be vigilant against a likely increase in online scams and cyber threats as the Christmas shopping season approaches, particularly during the Black Friday sales period. Concerns around sophisticated phishing and online fraud are mounting, with new survey results indicating most Australians believe artificial intelligence is making scams both more convincing and successful.

Rise in scams

According to recent research from Yubico, 82% of Australian respondents are convinced that online scams and phishing attempts have grown more sophisticated due to advances in artificial intelligence. Additionally, 73% say these upgraded scams are seeing greater success in compromising victims.

The heightened risk coincides with holiday shopping habits, as online shopping and social media account passwords are among the most commonly compromised, according to the same survey. This has raised the importance of advanced digital security measures as Australians flock online for pre-Christmas deals.

Phishing tactics

Cybercriminals are known to intensify their activities during busy retail periods, targeting consumers who are distracted or in a hurry. The frequency of phishing attacks is expected to increase as scammers use bulk email and SMS campaigns, often disguised as banks, parcel delivery notifications, or loan payment alerts.

"It's that time of the year when we see an increase in phishing attacks due to the volume of Christmas shopping, and scammers thrive when shoppers are time-poor. With AI accelerating and personalising sophisticated phishing campaigns, relying on passwords as your only defence is a major risk," said Geoff Schomburgk, Vice President for Asia Pacific and Japan, Yubico.

Security recommendations

Security experts continue to urge Australians to adopt multi-factor authentication (MFA) as a key defence against account compromise. MFA methods, particularly those which require hardware authentication keys or passkeys, can significantly limit the effectiveness of stolen credentials by ensuring access is only granted with the correct physical device.

Yubico recommends a three-step approach to digital security:

Firstly, users are encouraged to make MFA a priority, adopting modern authentication methods for key accounts including retail, social media, email and banking. Secondly, consumers are advised to exercise caution before clicking on links, especially in unsolicited alerts. Instead, they should contact relevant institutions directly using official channels. Thirdly, password managers are suggested to generate and store unique, complex passwords, with MFA adding another layer of security for these crucial tools.

Retail security offers

Yubico has responded to seasonal demand by introducing discounts on its YubiKey range, a hardware security product designed for phishing-resistant authentication. The discounts are available both via online retail partners and Yubico's own eCommerce store, and are promoted as a timely opportunity to enhance digital protections in light of current threats. For a limited period, customers can access 30% off select security key models through an Australian online retail partner.

"This Christmas, all Australians should take steps to proactively protect their accounts with MFA and Yubico is making it easy and affordable to upgrade to the top defence that matters: phishing-resistant YubiKey security keys," said Schomburgk.

Online protection urgency

Yubico's findings indicate that, as cyberthreats increase in sophistication, the consequences of compromised online accounts - including retail and social media - can have significant ramifications for Australian consumers. Security vendors and experts alike emphasise the urgency of moving beyond passwords alone, adopting stronger and more resilient defences to prevent account breaches and identity theft.

"Recovering social media, email, financial and other accounts if your account gets hacked is a lot more effort than proactively protecting your accounts with stronger MFA," said Schomburgk.