Buy Crypto
Markets
Trade
Futures
Earn
Square
More
Binance Blog

Know Your Scam: How to Identify Fake Shopping Websites

2023-05-04
Know Your Scam

Main Takeaways

  • Fake e-commerce websites are common scams that trick victims into sending money for products that don’t exist.

  • Most fake shopping websites are designed to mimic legitimate retailers. They often “sell” popular items such as electronics or designer clothing.

  • Have you fallen victim to a scam? Freeze your bank accounts and report the incident to the relevant authorities and the Binance support team.

Learn how to identify and avoid scammy shopping websites with the latest edition of our Know Your Scam series.

There are two things online shoppers always look for before they hit buy: discounted prices and free shipping. While it’s hard to pass up a good deal, you should always tread carefully if you find a price too good to be true. 

You might’ve navigated to a fake shopping website designed to take more than the price of that shiny PS5 you were eyeing. Unfortunately, such websites have been around for years, with crypto wallets becoming the latest target for scammers. With digital assets being increasingly used as a payment method in online shopping, the scammers behind fake e-commerce websites are keeping up with the speed of innovation.

In this article, we'll explore how fake shopping websites operate, how to identify and avoid them, and what to do if you've fallen victim to one. 

How Fake Shopping Websites Work

1. Creating the fake website

Most fake e-commerce websites are designed to mimic legitimate retailers, complete with the same logos, images, and listed products. If the scammers are experienced, the fraudulent site will look almost identical to its real counterpart at first glance. 

The goods for sale are typically higher-end products and services. And, of course, these websites will always have a wallet address for victims to send “payment.” There are also instances of fake shopping websites that lure people into selling their items after paying a “security deposit” that is, of course, never refunded. 

2. Luring victims in with attractive pricing

The prices advertised on fake shopping websites are significantly lower than those offered by genuine retailers, making sham online stores attractive to deal-hungry shoppers. Most fake websites will feature popular items that are expensive, such as designer clothing or gaming consoles. 

To pressure users into making a quick decision, scammers often resort to age-old tactics such as claiming that products are in high demand, nearly sold out, or only available for a limited time.

3. Ghosting the victim

While a small percentage of fraudulent websites may deliver cheap knockoffs, most are designed to steal money or personal information. 

Users who send crypto to the address provided by the scammers are likely to never receive the products they paid for. Moreover, asking customer service to help can result in another opportunity for scammers to request payment for “additional fees.” 

See an Example in Action

Discounted toilet bidet seat

The user, whom we’ll call Mark, is approached by a “merchant” online who claims to have a superior offer for a bidet toilet seat. The “merchant” then sends Mark a link to a scam website with lower prices on such goods than every competitor. Mark is initially skeptical because he can’t find much information from previous buyers.

Unfortunately, Mark is tempted by a 50% discount that expires in one hour and places an order immediately. He eventually realizes it’s a scam after the seller leaves multiple inquiries regarding Mark’s order without reply. 

This example demonstrates the typical characteristics of a fake shopping website, which:

  • Offers products at a price cheaper than market value

  • Does not deliver anything to the customer

  • Has no reviews (or, sometimes, unusually positive ones) from previous buyers 

Tips to Protect Yourself From Fake Shopping Scams

  • Stick to well-known, established platforms. If you find a website you’ve never heard of, do your research and verify its legitimacy before making any purchase. For example, search what people have said about the site on forums or social media. 

  • Read reviews from other customers before making a purchase. Pay attention to the wording and quantity of positive reviews. Every product, even the best one, will have a sizeable share of negative reviews.

  • Don’t fall for messages designed to pressure you into sending crypto without doing your due diligence. For example, fake shopping websites might say something like: “Act now! Only two items left in stock!” or “Discount expires in 10 minutes!”

How to Spot a Fake Shopping Website

Check the URL

On the surface, scam websites will often look identical to a legitimate retailer's official webpage. Before you click anything on the website, scan the URL to ensure you’re in the right place. 

Scammers typically use domain names that are similar to the official URL; for example, they might rearrange a few letters of “binance.com” into “biananc.com.” 

Do Your Research (DYOR)

Verify the domain on a website checker, such as Google Transparency Report. You can also click the padlock symbol next to the URL in the address bar to view the website’s security certificate. This should show important information such as the registered company name, country of origin, province or state, and locality.

Note that these are only some of the steps you should take before trusting a website. Don’t automatically trust a URL checker or a “security certificate,” both of which scammers have found ways to bypass. 

Look for telltale signs

When building a fake shopping website, scammers prioritize speed over quality to maximize the damage they can do before the domain gets taken down. 

You’ll find that fake shopping websites are often riddled with misspelled words, grammatical errors, pixelated images, and missing web pages. Be wary if you see any of these mistakes or a combination of them.

As always, be wary of prices — or anything about the offer, for that matter — that seems too good to be true. 

What to Do If You've Been Scammed

  • If you’ve provided your personal information to a scammer, freeze your bank and other financial accounts immediately, change your passwords, and take other measures to keep your money safe. 

  • If your Binance account is compromised, disable your account and follow the steps outlined in this guide: How to Report Scams on Binance Support.

  • Report the scam to the police. Binance works closely with law enforcement agencies worldwide, and our efforts often result in successful arrests and seizures. 

  • Be cautious of “recovery services.” While some may offer legitimate assistance, many make false promises or require upfront payments. Don’t get scammed twice. 

We also encourage all users, both new and old, to read through our anti-scam series to better equip themselves against common crypto scams. 

Further Reading

Disclaimer and Risk Warning: This content is presented to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. It should not be construed as financial advice, nor is it intended to recommend the purchase of any specific product or service. Digital asset prices can be volatile. The value of your investment may go down or up, and you may not get back the amount invested. You are solely responsible for your investment decisions, and Binance is not liable for any losses you may incur. Not financial advice. For more information, see our Terms of Use and Risk Warning.

Â