A concerning trend is emerging on TikTok Shop and other e-commerce platforms: a massive influx of fake products, fueled by increasingly sophisticated AI tools. Business Insider reports that a wave of counterfeit brands, deceptive copycat products (often called “dupes”), and completely fabricated items are flooding the marketplace, leaving users vulnerable to fraud.
The Rise of AI-Powered Fraud
This isn’t a case of simple scams – the scale and sophistication are new. Fraudsters are now leveraging generative AI to create entirely fake brands and products, and then attempting to collect payment without ever fulfilling the orders. As Nicolas Waldmann, who leads TikTok Shop’s governance and experience external affairs team, puts it, “It’s organized crime, to be honest.”
How AI Facilitates the Problem
While fraudulent practices aren’t new, AI drastically complicates the situation. These tools allow scammers to rapidly generate convincing product listings and marketing materials, making it increasingly difficult for platforms and users to distinguish between genuine items and elaborate fakes. It is an arms race of sorts.
TikTok’s Response: Fighting AI with AI
Platforms like TikTok and Amazon are actively combating this issue. Amazon is deploying AI tools to identify and track fraudulent sellers leveraging AI to commit fraud. TikTok is taking a similar approach, using AI to detect and remove these malicious sellers, alongside human moderation. As Waldmann notes, TikTok is essentially “using AI to basically deal with AI,” creating an ongoing cycle of detection and evasion.
The Scale of the Problem
TikTok recently published a report indicating the severity of the situation. In the first six months of 2025, the platform rejected over 70 million products before they were even listed—a 40% increase compared to the previous six-month period. The company attributes this increase to a combination of factors: the growth of its global seller and creator community and improved detection capabilities.
“As our seller and creator community grows globally, and our ability to detect prohibited products improves, the number of violative products we prevent from landing on our platform has increased,” TikTok stated.
A Larger Trend – Not Just TikTok
This isn’t an isolated incident. Reports earlier this year highlighted similar concerns on other platforms. For example, PC Mag reported on a “widespread, ongoing, malicious campaign” targeting users with the aim of stealing cryptocurrency and personal data—demonstrating a broader trend of online fraud leveraging new technologies.
In conclusion, the proliferation of fake products on TikTok Shop, and e-commerce generally, underscores the growing challenge posed by AI-powered fraud. Platforms are actively working to counter these threats, but users should also exercise caution and skepticism when shopping online, particularly when encountering unfamiliar brands or unusually low prices. The key takeaway is that vigilance is essential in this evolving digital landscape.
