According to a recent report by Netcraft, a leading global company specializing in fraud protection solutions, there has been an alarming 135% increase in the prevalence of fake online stores on the internet as of late October 2023.
As the shopping frenzy of Black Friday and Cyber Monday approaches, cybercriminals are exploiting the season’s discounts to prey on unsuspecting shoppers on legitimate platforms.
Netcraft’s findings shed light on the deceptive nature of these online shops, which, while presenting themselves as providers of heavily discounted products, often impersonate reputable brands or established retailers.
Some operate under various brand names. The primary goal appears to be the acquisition of payment details and sensitive information, which can be either directly exploited or sold to other malicious actors.
Read Also: Binance CEO Resigns, Pleads Guilty to Money Charges
The surge in fake online stores
A Black Friday revelation With the proliferation of these fraudulent websites, consumers are strongly advised to exercise caution during the holiday shopping season. As the significance of “Black Friday” extends beyond its U.S. origins and gains global prominence, even stores in Nigeria participate in the tradition, underscoring the need for increased vigilance against online scams.
Analyzing Netcraft’s findings, the company stated,
“As of the end of October 2023, Netcraft’s research has identified a staggering 135% increase in fake retail sites blocked compared to October last year, on top of an increase of 63% over October the previous year, conveying that the annual increase more than doubled in the last 12 months over already alarming growth.”
The company added, “These fake retail sites include copies of the spoofed site’s authentic logos, trademarks, and products to make the scam more convincing, but that’s not the only technique cybercriminals use. They also host fake retail sites on deceptive domains. This typically involves registering a domain name that is deceptively similar to another (usually well-known) organization. Once again, the aim is to trick users into believing they are interacting with a trustworthy website.”
Navigating the digital marketplace
Insights on spotting fake online stores As consumers engage in online shopping, Netcraft’s report offers crucial insights to help them avoid falling victim to fraudulent online stores. Shoppers are advised to scrutinize various aspects to identify potential threats.
- Consider the pricing strategy: Fake shops often display steep discounts ranging from 50% to 95%, accompanied by a fictitious, possibly inflated, original price. This is particularly suspicious for brands that rarely offer genuine discounts.
- Examine contact details: Check for the availability of contact information such as a geographic location or phone number on the store’s website. The absence of such information is a red flag, indicating potential malicious intent. Generic and templated content in the ‘about us’ section further underscores the risk.
- Evaluate promotion methods: Fake shops may showcase social media icons without functional links or redirect users to fraudulent profiles, signaling an attempt to deceive through false promotion.
- Assess page design professionalism: Fake retail sites often deviate from accurately duplicating a brand, opting to insert a well-known logo into a pre-designed template chosen by cybercriminals. ‘Brand mismatching,’ where logos unrelated to the products are used, is another indicator.
- Scrutinize the domain name: Fake retail sites frequently use deceptive domain names resembling well-known brands, employing common misspellings, adding geo-based attributes, or attempting deception with phrases like ‘sale’ or ‘discount’ appended to legitimate brand names.
Conclusion
Against the backdrop of online shopping reaching a staggering $5.7 trillion in 2022, consumers are strongly urged to exercise vigilance. During the same period, cybercriminals and threat actors orchestrated nearly $41 billion in fraudulent activities, emphasizing the critical need for heightened awareness in the digital marketplace.
