Etsy Shop Suspended After First Sale – Used AI-Generated Photos, Reason: “Potential Fraud”. How to Appeal?

Here’s how to figure out what went wrong:
1. Check your identity documents first.
If you purchased the account from someone else, or the documents have been used before, or you’re using a virtual credit card—that’s often the real issue. Etsy flags virtual cards as high risk. Fraud suspensions usually come down to bad documents or payment method.
2. If you’re sure your documents are clean (real friend, unused docs, physical credit card matching the country), then look at your products.
If everything checks out there, you might have a shot at appeal.

Only after ruling out document/payment issues should you focus on the product side.

How do I actually write the appeal? Any template?

First, check if it’s an IP issue. Did you accidentally use someone else’s design or brand name? Look at your images and your listing text. If you find something, figure out who owns it (US brand? EU?), then write your appeal addressing that specific infringement.
Once you know what the problem is, you can build your appeal around it.