According to the Guardian, a Chinese network running countless fake online shops has defrauded more than 800,000 people in the US and Europe.
These stores try to trick people into providing their card details and other sensitive personal data by advertising discounts on products from luxury brands such as Dior, Nike, Lacoste, Hugo Boss, Versace, Prada and many more.
Woman shopping online (Kurt “Cyberguy” Knutson)
How this online scam works
An international investigation by The Guardian, Die Zeit and Le Monde found that the Chinese network is home to more than 22,500 fake online shops that lure people into giving away their credit and debit card details, names, phone numbers, email addresses and addresses, claiming to offer designer brands at discounted prices.
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This scam has two levels. At the first level, a fake payment gateway tricks people into entering their credit card information but no charges are made, allowing fraudsters to steal card details without taking any money. At the second level, criminals set up fake online stores or other platforms to actually take money from people.
The Chinese network uses expired domains to host fake shops to avoid detection by website and brand owners. The network reportedly has a database of 2.7 million of these orphaned domains and runs tests to see which ones are the best to use.
To date, around 800,000 people, mostly from the US and Europe, have shared their email addresses, with 476,000 of them also providing debit and credit card details, including three-digit security numbers. The network’s first fake shop was established in 2015. Since then, the group may have attempted to steal up to around $54.2 million.
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Man shopping online (Kurt “Cyberguy” Knutson)
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What did those affected say?
Many people thought these fake online stores were legitimate and placed orders thinking they were a bargain. Melanie Brown from Shropshire, England, told The Guardian that she was looking for a new handbag when she found her favorite leather bag by German designer Lundholz on sale for 50% off at one of the fake online stores. Attracted by the low price, she added it to her cart along with other designer clothes from Magnolia Pearl, totaling £1,200, or about $1,529 for 15 pieces. But Brown never received the items.
The Guardian interviewed 19 people from the US and UK who revealed that these websites were not created to sell counterfeit goods. Most received nothing, but some received the wrong products. One German shopper bought a blazer but received cheap sunglasses instead. One British customer received a fake Cartier ring instead of a shirt, and another received an unbranded blue jumper instead of the Paul Smith jumper he ordered.
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What this online scam means for your privacy and security
Fake online shop scams don’t necessarily result in immediate financial loss. As The Guardian reports, “Many people who tried to shop didn’t lose any money – either their banks blocked the payments or the fake shops themselves didn’t process them.”
But in both cases, these scammers have data about you, such as your address and card details. This data can be used in a variety of ways. They can use it to steal more money than you would pay at an online store. They can also pose as your bank or someone you know to trick you out of your money. They can also sell this data to criminals and companies on the dark web for marketing purposes.
Man working on a laptop (Kurt “Cyberguy” Knutson)
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Seven proactive steps to protect your data
Online shopping scams can happen to anyone. Here are seven steps you can take to protect your money and personal data.
1. Invest in a personal data deletion service: If you’ve been duped by one of these fake online shops, your data may be out there online, and personal data removal services can help by combing through numerous people search and data broker websites to find your data and request its removal.
No service promises to delete all your data from the Internet, but if you want to constantly monitor and automate the process of continually deleting information from hundreds of sites over a long period of time, a deletion service can be a useful tool. Check out my recommendations for personal data deletion services here.
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2. Avoid Technical support phone scams: Now that the hacker knows your name and contact information, they may try to contact you by posing as an employee of a well-known technology company. Hackers may claim to work for a large company such as Apple, Microsoft, Amazon, etc. Always check if the technical support person you are speaking with actually works for the company.
3. Be careful when shopping online: Shop only from reputable, well-known websites you can trust. Be wary of unfamiliar online stores selling luxury brands at deep discounts. Check the website URL and security credentials (https:// and a lock icon) before entering your payment information. Use a credit card instead of a debit card for online purchases, as credit cards offer better fraud protection.
4. Be careful with mailbox communication: Scammers can also commit fraud through the mail. Fake online shops have access to your address. They may impersonate people or brands you know and use themes that require urgent action, such as delivery delays, suspended accounts, and security alerts.
5. Monitor your accounts and transactions: Regularly check your online accounts and transactions for any suspicious or fraudulent activity, and if you notice anything unusual, report it to your service provider or the authorities as soon as possible.
6. Use identity theft protection: Identity theft protection companies can track personal information like your home ownership, social security number, phone number, email address, etc. and notify you if it has been used to open an account. They can also help you freeze bank and credit card accounts to prevent further fraudulent use by criminals. Check out our tips and best choices for protecting yourself against identity theft.
7. Protect your devices and accountsUse strong, unique passwords for all your online accounts. Two-factor authentication As far as possible, Device Updated Apply the latest security patches and use strong antivirus software.
The best way to protect yourself from clicking on malicious links that could install malware that could access your personal information is to install antivirus protection on all your devices, which will also warn you about phishing emails and ransomware scams. We’ve handpicked the winners of the best antivirus protection of 2024 for Windows, Mac, Android and iOS devices.
Important points about the cart
Online scams are getting worse, so you need to stay vigilant. Scammers are doing everything they can to gain access to your data and sell it to companies and other scammers. Tech giants need to take stricter measures to protect you from scams. Also, when shopping online, buy from trusted vendors and always double-check before entering any personal information. Additionally, make sure to follow the seven steps outlined above to protect your money and personal data. Do so and you’ll be glad you did.
Do you think online shopping is risky? Have you started shopping offline due to privacy and security concerns? Email us and we’ll help you. Cyberguy.com/Contact Us
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