Scammers in China Are Using AI-Generated Images to Get Refunds

Summary

WIRED reports that fraudsters in China are increasingly using AI-generated photos and videos to support bogus refund claims on ecommerce platforms. Sellers have received doctored images showing ruined fresh groceries, shredded bed sheets, cracked ceramics and other damage that often doesn’t match the real items — and in many cases platforms issue refunds without requiring returns.

The practice has escalated since mid-2024 as generative-image tools became widely available. Some scams have attracted police attention — in one notable case fabricated crab videos led to the buyer being detained — but organised groups are also exploiting mass submissions, rotating IPs and time-window bursts to scale fraud. Detection tools exist, but they’re imperfect, and stricter return rules could unfairly penalise honest customers.

Key Points

Scammers submit AI-generated photos/videos as evidence to obtain refunds; common targets include fresh groceries, low-cost beauty products and fragile goods.
Doctored media sometimes contains tell-tale inconsistencies (gibberish labels, anatomically wrong items, mismatched sequences across clips) that alert sellers.
Fraud-detection firms report a significant rise in AI-manipulated refund images globally — Forter cites a 15%+ increase year-to-date.
Organised actors scale attacks with mass claims, rotating IPs and rapid submission windows to overwhelm review systems.
Retailers and marketplaces face a trade-off: improve verification and risk customer friction, or keep processes easy and absorb more fraud.

Context and Relevance

This story is important for online retailers, marketplaces, customer-service teams and fraud analysts. It shows how the widespread availability of generative AI is undermining trust-based verification used across ecommerce and may force changes to return policies, platform verification rules, and accountability mechanisms. If you manage online sales or consumer protection, the evolving threat is immediate and operational.

Why should I read this?

Quick and blunt — people are using AI to create fake broken-product photos and getting refunds. If you sell online or hate hearing about scams after the fact, read this now — it’s a fast heads-up on a problem that’s getting worse and could affect your bottom line or buying experience.