Fake Websites & Ad Scams: A Growing Threat Retailers Can’t Ignore

Scammers exploit seasonal sales and trends, launching fake ads that promise limited‑time deals to pressure customers into fast decisions.

What’s Happening

Fake websites and scammy ads are on the rise, and retailers are feeling the heat. Fraudsters often mimic legitimate retailers, advertising counterfeit products or “too-good-to-be-true” offers to lure unsuspecting customers.

Phishing campaigns, aggressive discounts, and AI-enhanced scams are increasingly common, making it more challenging for retailers to identify malicious activity before it affects their operations.

Retailers face threats both directly—through brand impersonation—and indirectly, when consumers fall victim to fake offers or malicious campaigns that appear to originate from a trusted source.

How Fake Websites & Ad Scams Work

These scams take many shapes, often combining digital tactics with social engineering to trick their targets.

• Lookalike Websites: Scammers create websites that closely resemble legitimate retailer sites, often using copied logos, product images, and branding elements.
• Sponsored Ads on Social Platforms: Fraudsters place ads on platforms like Google, Meta, and Instagram to reach a broad audience, promoting counterfeit offers or fake discounts.
• Spoofed Domain Names: Slight variations in domain names—misspellings or additional characters—can trick consumers into believing the site is authentic.
• Aggressive Discount Hooks: Scammers exploit time-limited deals or exclusive offers to pressure customers into making hasty purchases.
• AI-Enhanced Deception: Artificial intelligence is being used to create realistic-looking websites, emails, and chatbots that appear credible.
• Data Harvesting & Payment Fraud: These sites often capture sensitive customer information, including payment details, leading to potential financial fraud.

Who’s Targeted

While shoppers often take the hit, these scams also have real consequences for retailers, putting both brand reputation and revenue at risk.

• Retailers Themselves: Brand reputation can be compromised, and financial loss may occur from chargeback issues or fraud.
• Ecommerce Websites: Fake sites can pull traffic away and mislead customers, putting legitimate online sales at risk.

Red Flags for Retailers

Retailers should be vigilant for the following warning signs:

• Unauthorized use of brand assets such as logos, product images, or the company name.
• Multiple impersonator domains or slightly altered domain names.
• Sudden spikes in customer complaints or inquiries about nonexistent products.
• Irregularities in chargebacks, payments, or online transactions.
• Confusion among suppliers or partners receiving orders under your name that you didn’t place.
• Traffic coming from unknown referral domains that seem suspicious.

What Retailers Should Do: Mitigation & Training

Effective mitigation requires both technical measures and staff awareness.

• Monitor Digital Presence & Brand Abuse: Regularly check for impersonation, fake domains, and ads.
• Advertiser Verification: Confirm legitimacy of third-party ads promoting your brand.
• Secure Official Channels: Ensure company websites, social media, and payment platforms are protected.
• Train Customer Support: Educate teams on recognizing scams and guiding affected customers.
• Educate Marketing Teams: Help marketers spot fraudulent ads and suspicious campaigns.
• Payment Verification Protocols: Implement safeguards to detect and prevent unauthorized transactions.

If You’ve Been Affected: Reporting & Recovery

Retailers impacted by fake websites or ads should take immediate action:

• Report to the Federal Trade Commission (FTC) to alert authorities about scams targeting your brand.
• Report to IC3 (Internet Crime Complaint Center) for online fraud incidents.
• Notify domain hosting service providers if a fake website is using your brand or logo.
• Report to advertising platforms such as Google, Meta, or Instagram if fake ads are circulating.
• Check with Google Safe Browsing to flag malicious sites.
• Use ICANN lookup to identify domain ownership and take appropriate action.