Black Friday Warning: Fake Online Stores Surge 135% in 2023, Reveals Report

In a recent report by Netcraft, a global company specializing in fraud protection solutions, alarming trends in online fraud have been unveiled, showing a substantial surge in fake online stores, with a staggering 135% increase recorded at the close of October 2023.

This surge is particularly concerning, especially during the Black Friday and Cyber Monday shopping frenzy when authentic websites generously offer significant discounts on legitimate products, creating an ideal environment for cybercriminals to exploit unsuspecting consumers.

Netcraft’s findings reveal that these fraudulent online stores often masquerade as the official websites of renowned luxury brands and established retailers. Furthermore, these deceptive platforms operate across various brands, creating a facade to lure in unsuspecting shoppers. The primary objective behind these fake online shops is to capture sensitive information, particularly payment details, which can then be exploited directly or sold to other cybercriminals.

Black Friday, originally a term coined in the United States to signify the Friday following Thanksgiving, has evolved into a global phenomenon. In Nigeria, several stores participate annually, enticing customers with announcements of enticing discounts on their products. However, this widespread celebration has inadvertently provided a fertile ground for cybercriminals to carry out their fraudulent activities.

Netcraft’s research indicates a significant spike in fake retail sites, with a 135% increase compared to the same period last year. This alarming growth compounds the already concerning trend of a 63% increase over the previous year, demonstrating that the annual rise has more than doubled in the last 12 months. These fake retail sites go to great lengths to appear legitimate, incorporating copies of authentic logos, trademarks, and products to enhance the deception. Additionally, cybercriminals employ deceptive domain tactics, registering domain names that closely mimic well-known organizations to trick users into believing they are interacting with trustworthy websites.

To protect themselves from falling victim to these scams, Netcraft offers valuable insights for online shoppers. Key questions to consider include whether the prices seem too good to be true, as fake shops often offer extreme discounts ranging from 50% to 95%. Lack of contact details, including a geographic location or phone number, serves as a red flag, as does generic and templated content in the ‘about us’ section. Another warning sign is the absence of functional social media links or links leading to fraudulent profiles. Additionally, the report advises consumers to scrutinize the professionalism of the page design, as fake retail sites tend to deviate from the brand’s exact duplication, often inserting well-known logos into pre-designed templates chosen by cybercriminals. ‘Brand mismatching,’ where logos unrelated to the product category are used, is also highlighted as an indicator of a fraudulent site. Lastly, a questionable domain name, which might be deceptively similar to well-known brands, is identified as a common tactic employed by fake retail sites.

The surge in online shopping, which accounted for a staggering $5.7 trillion in spending in 2022, has provided ample opportunities for cybercriminals. During the same period, these threat actors committed nearly $41 billion in fraud. As the digital landscape continues to evolve, it is imperative for consumers to remain vigilant and adopt proactive measures to safeguard their personal and financial information from the ever-growing threats posed by fraudulent online activities.