The troubling reality is how close it came to succeeding.

Companies might soon begin demanding video evidence of defective or damaged items before agreeing to process returns, exchanges, or refunds.

“We’re facing a significant challenge with AI-driven customer fraud. If a customer claims a product is faulty or never arrived, what’s a business supposed to do?” Paterson explained.

“Refusing a refund could lead to legal issues and potentially damaging online reviews, which can be devastating for businesses.”

She advised small business owners to familiarize themselves with AI and learn to recognize warning signs.

Foord shared this advice in a social media clip, cautioning Australians to be vigilant against this emerging form of fraud.

It has already received nearly 300,000 combined views across Instagram and TikTok.

”I just wanted to raise awareness that there’s people out there that are unfortunately doing this,” Foord said.

“There’s people out there that have probably gotten away with it as well, and think they can get away with it again.”

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