A surge of generative AI scams is pushing TikTok Shop to toughen its marketplace safeguards as fake sellers multiply faster than detection systems can react.
TikTok’s e-commerce arm has entered a new phase of digital policing. The platform is now dealing with organized criminal networks that are using AI tools to clone brands, forge listings, and trick shoppers into paying for non-existent items. These schemes, while not entirely new, have become more sophisticated thanks to generative AI, which allows fraudsters to automate fake branding and product visuals in minutes.
The company’s latest Safety Report for January to June 2025 paints a clear picture of how widespread the issue has become. During this six-month window, TikTok Shop blocked over 70 million products from ever going live and shut down more than 700,000 seller accounts that violated its policies. It also declined 1.4 million new seller registrations that failed to meet verification standards, a sign of how much the marketplace is tightening its onboarding process.
AI Against AI in the Marketplace Battle
TikTok Shop has turned to its own mix of machine learning and human moderation to keep pace. AI now screens listings before they appear, scanning for counterfeits, safety violations, or prohibited items. Human teams handle deeper checks, focusing on repeat offenders and emerging scam tactics. The platform describes this as a “use of AI to fight AI,” reflecting how automated moderation has become a necessity rather than an option.
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A probation period is now mandatory for new sellers, restricting uploads and order volumes until their authenticity is verified. This additional layer aims to slow down the entry of fraud networks that flood marketplaces with new accounts once older ones are banned. Between January and June alone, 99.5% of all violative listings were identified and removed proactively, often before a single sale occurred.
Fraud, Counterfeits, and Fake Listings on the Rise
Generative AI has reshaped the anatomy of online scams. Fraudsters use language and image models to fabricate convincing brand identities, product packaging, and even customer reviews. TikTok’s moderation systems, while improving, face a constant game of adaptation. Sellers have attempted to bypass detection by altering minor details across thousands of listings, forcing TikTok to recalibrate its algorithms continuously.
The company has also struggled with a growing market for “dupes”, low-cost imitations of popular items. Some listings sneak past filters by using coded language or cropped imagery. Despite clear rules on restricted and prohibited products, items such as THC-infused syrups and adult products have occasionally surfaced, demonstrating how quickly exploiters test the platform’s limits.
Expanding Oversight and Recall Operations
Beyond detection, TikTok Shop’s recall and refund operations have scaled up dramatically. In the first half of 2025, 4,600 public product recalls were handled, often in coordination with government agencies. The company’s recall system now directly alerts customers who previously bought affected items, closing a major gap that once allowed unsafe products to remain in circulation.
Its refund and return systems have also evolved into a key trust-building mechanism. Free returns now cover millions of items, supported by 55,000 drop-off locations across the United States. Eligible customers receive instant refunds once returns are scanned... an approach designed to lower post-purchase friction and rebuild confidence among wary shoppers.
Trust as a Competitive Strategy
TikTok’s e-commerce arm may still be young, but its ambitions rival established players like Amazon and Shein. The platform’s safety overhaul isn’t only about compliance — it’s a survival move. Counterfeits and fraud cut directly into user trust, the currency that drives its entire shopping ecosystem.
Transparency has become its central narrative. Regular public reports, tighter seller verification, and global cooperation with regulatory bodies all feed into that strategy. By blending human review with machine precision, TikTok hopes to scale commerce without losing control of quality.
Still, the fight against AI-generated fraud remains a moving target. Each step forward in detection is met with a new tactic from scammers using the same technology. TikTok Shop’s latest numbers show it is holding the line, but the battle between AI and AI is only just beginning.
Notes: This post was edited/created using GenAI tools. Image: DIW-Aigen.
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