# E-commerce response to AI-driven fraud and content > Live situation record from CLSTR: https://clstr.news/situations/e-commerce-response-to-ai-driven-fraud-and-content > Updated: 2026-10-22T23:56:42.000Z. Sources: 10. Developments: 2. Online sellers have reported increasing risks from fraudulent buyers using artificial intelligence to manipulate product images. Scammers reportedly retouch photos of received items to make them appear damaged or non-compliant with original listings, allowing them to secure refunds while retaining the goods. In response, some sellers have adopted practices such as filming the packaging process to provide visual proof of an item’s condition at shipment. In an effort to combat deceptive content and restore buyer trust, platforms like Etsy have introduced stricter policies. These measures include banning AI-generated ‘functional guides’—such as sewing patterns or recipes—unless sellers provide a photo of an actual finished product. To prevent visual deception, requirements have been implemented for listings to include unretouched photos of physical items in real-world settings. While AI-generated art is still permitted with disclosure, platforms are implementing tools to flag AI-generated images and provide reporting mechanisms for misleading imagery. ## Timeline ### 2026-10-22: Etsy implements stricter AI policies for listings and functional guides Etsy is banning AI-generated recipes and patterns while requiring unretouched photos of real products to combat misleading AI-generated listings and restore buyer trust. 10 sources. https://clstr.news/cluster/etsy-bans-ai-generated-recipes-and-patterns ### 2026-10-04: Online sellers face new risks from AI-driven image manipulation fraud Sellers on platforms like Vinted and Allegro are facing new AI-driven fraud where buyers use artificial intelligence to manipulate photos of products to claim they are damaged and secure fraudulent refunds. 2 sources. https://clstr.news/cluster/online-sellers-face-new-risks-from-ai-driven-image-manipulation-fraud --- Cite as: E-commerce response to AI-driven fraud and content. CLSTR, https://clstr.news/situations/e-commerce-response-to-ai-driven-fraud-and-content