A surge in domain scams has seen fake websites mimicking prominent brands to lure unsuspecting victims on social media platforms. These fraudulent sites, designed to replicate the branding of well-known retailers like Blue Illusion, Millers, and Sussan, are promoting fictitious closing-down sales, preying on Australian consumers.
Guardian Australia’s investigation uncovered over 140 “ghost stores” masquerading as local brands, with some even impersonating established retailers. Customers who fell victim to these scams are calling on major platforms like Shopify, Meta, and PayPal to take swift action against these deceptive practices.
One alarming instance involved a Facebook ad showcasing a bogus Blue Illusion storefront, enticing users with a final sale offer. However, the website linked in the ad, utilizing the domain name yayeco.top, bore no affiliation with the authentic Blue Illusion store that has been in operation for over three decades.
Similar deceptive ads were found for other Australian labels such as Susanne Grae, Sussan, and Millers, redirecting users to sites with misleading domain names and branding. While some of these brands confirmed they were not shutting down, customers who made purchases from these sham websites never received their items.
Elizabeth Bednall, a victim of such a scam, recounted how she spent money on products she never received, emphasizing the need for platforms like Facebook to take responsibility for allowing these fraudulent ads to proliferate.
Vicki Forscutt, another affected consumer, expressed disappointment in Meta’s initial response to reports of fictitious ads, highlighting the challenges in combating these scams due to the elusive nature of the perpetrators behind these ghost stores.
Efforts to address the issue have been made by PayPal, which removed a fake Millers site from its platform and assured users of verified seller accounts. However, the complexity of international regulations poses challenges in preventing bad actors from exploiting online platforms for illicit gains.
Many of these deceitful online storefronts are built using Shopify’s e-commerce platform, underscoring the company’s role in inadvertently facilitating these scams. Despite repeated requests for comments, Shopify has remained silent on its involvement in enabling these fraudulent activities.
Experts have called for increased vigilance from major online platforms to curb the proliferation of ghost stores and protect consumers from falling victim to domain scams. Industry players like Meta, Shopify, and PayPal are urged to collaborate with authorities to enhance safeguards and prevent further exploitation of unsuspecting online shoppers.
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