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As AI agents enter festive shopping, banks warn of fraud and payments risks

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As AI agents enter festive shopping, banks warn of fraud and payments risks

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As AI agents enter festive shopping, banks warn of fraud and payments risks

As AI moves from recommending products to making purchases, banks are flagging risks around fraud, privacy, authorisation and who is responsible when an agent makes a mistake

AI shopping agents could reshape festive shopping while raising fraud and data privacy concerns. (Image: AI-generated)

Sweta Kumari New Delhi 6 min read Last Updated : Sep 24 2026 | 3:56 PM IST

Banks are warning that artificial intelligence (AI) agents used for online shopping could create new risks around scams, fraud and data privacy as technology companies move towards systems that can select products and make purchases on a user's behalf. The warning comes as India's festive shopping season gets underway, with Amazon's Great Indian Festival, Flipkart's Big Billion Days and other ecommerce sales expected around Dussehra, Diwali and the year-end period. This year's sales will also come at a time when consumers are experimenting with AI tools to discover products, compare prices and make shopping decisions.

In customer outreach initiatives undertaken by several global and Indian banks, the message is clear: AI agents could buy the wrong product, spend more than a customer intended, expose financial information or direct users towards payment methods with weaker protections. Some global banks also pitch for greater disclosure when an AI agent is involved in a transaction, more transparency around how agents make decisions and stronger safeguards for customer data.


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