Main
Fake online stores are a common type of scam that trick victims into sending money for items that don't exist.
Most fake online stores imitate the websites of real online stores. They often "sell" popular items such as electronics or designer clothing.
Have you been a victim of fraud? Block your bank accounts and report the incident to the competent authorities and Binance support.
Learn how to tell if an online store is fake in the latest installment of our How to Spot a Scam series.
Online shoppers look for two things before they click “Buy”: discounts and free shipping. It's hard to pass up a good deal, but if you see a price that's too good to be true, you need to be careful.
You may end up in a fake online store, interested in a new PS5 at an attractive price. Unfortunately, such sites have existed for many years, and crypto wallets have become a new target for scammers. Digital assets are increasingly being used as a payment method for online retailers, and scammers creating fake e-commerce sites are keeping up with the innovation.
In this article, we'll look at how fake online stores work, how to recognize them, and what to do if you become a victim of scammers.
How fake online stores work
1. Creating a fake website
Most fake online stores imitate the websites of real online stores with the same logos, images and product range. If the scammer is experienced enough, then at first glance the fake site will look almost the same as its genuine counterpart.
Expensive goods and services are usually put up for sale. And of course, such sites always provide a wallet address to which victims can send a “payment.” Some fake online stores ask users to pay a “security deposit” before purchasing items, which, of course, is never refunded.
2. Luring victims with attractive prices
The prices offered in fake online stores are significantly lower than those offered by real sellers, due to which such fake sites attract people looking for bargains. Most fake online stores stock popular and expensive products, such as designer clothes or gaming consoles.
To get buyers to make a quick decision, scammers often resort to the age-old trick of claiming that the item is in high demand, nearly sold out, or available for a limited time.
3. Deceiving the victim
While a small percentage of fake online stores do sell cheap counterfeits, most of these sites are designed to steal money or personal information.
Users who sent cryptocurrency to the address specified by scammers will most likely never receive the paid goods. Moreover, contacting customer support may give scammers the opportunity to demand payment of “additional fees.”
Example from life
Discount bidet seat
A user—let's call him Mark—finds an online seller who claims to have a bidet seat at a great price. The seller then sends Mark a link to a fraudulent site where prices for similar products are lower than any competitor. Mark is initially skeptical because he can't find reviews from previous customers.
Mark is then attracted by the 50 percent discount that expires in an hour and orders immediately. When the seller leaves several of his requests regarding the order unanswered, he realizes that he has become a victim of a scammer.
This example demonstrates the typical signs of a fake online store that:
offers goods at a price below market value;
does not deliver anything to the buyer;
has no reviews from previous clients (and if there are any, they are unnaturally positive).
Tips for protecting yourself from fraudulent online stores
Buy products from well-known and reputable platforms. If you find a site you've never heard of, do your research and check its authenticity before making a purchase. For example, look for reviews about it on forums or social networks.
Read reviews from other customers before making a purchase. Pay attention to the wording and the number of positive reviews. Every product, even the best one, will definitely have some negative ratings.
Do not fall for attempts to force you to send cryptocurrency before sufficient verification has been carried out. For example, fake online stores often use messages like “Hurry up! Only two left in stock!” or “Discount expires in 10 minutes!”
How to recognize a fake online store
Check the URL
At first glance, scam sites often look the same as the official page of a genuine seller. Before clicking any button on a site, check the URL to make sure you are in the right place.
Fraudsters typically use domain names that are similar to the official URL; for example, they can rearrange a few letters in the words “binance.com”, turning this address into “biananc.com”.
Do your own research
Verify the domain using a website verification service such as Google Transparency Report. You can also click the padlock symbol next to a URL in the address bar to view the site's security certificate. It should include important information such as the official name of the company, country of origin, region or state, and locality.
Please note that these are just some of the steps to take before relying on the authenticity of a site. Don't trust the default URL checker or security certificate: scammers have already found ways to bypass them.
Pay attention to characteristic signs
When creating fake online stores, scammers prioritize speed over quality so they can steal as much money as possible before their domain is deleted.
You will find that fake sites often have spelling and grammatical errors, poor graphics, and some missing web pages. If you notice any of these signs or a combination of them, be wary.
If you see prices or offers that are too good to be true, be wary.
What to do if you become a victim of scammers
If you have provided your personal information to a scammer, immediately block your bank and other financial accounts, change your passwords, and take other steps to keep your money safe.
If your Binance account has been hacked, disable it and follow the instructions in How to Report Fraud to Binance Support.
Report fraud to the police. Binance works closely with law enforcement agencies around the world, and this often results in the arrest of criminals and the recovery of stolen assets.
Be wary of offers of “refund services.” Although sometimes you may be offered real help, often these are just false promises or advance payment scams. Don't fall for another trick.
We also encourage all users—new and old—to review our Crypto Fraud Prevention series to help protect yourself from common threats.
Additional Information
How to recognize fraud
How to Recognize a Scam: A Complete Guide to Identifying the Most Common Cryptocurrency Scams
How to Recognize a Scam: Crypto Investment Scams to Watch Out for
How to recognize a scam: the main signs of an impostor scam
Risk Warning and Disclaimer: The following materials are provided “as is” without warranty of any kind for general reference and educational purposes only. This information should not be considered financial advice or a recommendation to purchase any specific product or service. The value of digital assets can be volatile. The value of the funds invested may go up and down. You may not get your invested funds back. You are solely responsible for your investment decisions. Binance is not responsible for your possible losses. This information does not constitute financial advice. For more information, please review our Terms of Use and Risk Disclosure.