Main conclusions

  • Fake e-commerce websites are common scams that trick victims into sending money for fake products that do not exist.

  • Most fake shopping sites are designed to imitate legitimate retailers, and these sites often "sell" common 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 Binance support team.

Learn how to spot and avoid scam shopping sites with the latest installment of our “Your Guide to Spotting Scams” ​​series.

There are two things online shoppers always look for before making a purchase: discounted prices and free shipping. While it's hard to pass up a good deal, you should always be careful if you find a price that's too good to be true.

You may have browsed a fake shopping site designed to charge more than the price of the PS5 you were looking at. Unfortunately, these sites have been around for years, and cryptocurrency wallets have become the latest target for scammers. As the use of digital assets as a payment method in online shopping grows, the fraudsters behind fake e-commerce sites are keeping up with the speed of innovation.

In this article we'll explore how fake shopping sites work, how to recognize and avoid them, and what to do if you fall victim to one.

How fake shopping sites work

1. Create a fake website

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

The items for sale are usually high-quality products and services, and of course, these websites will always have a wallet address for victims to “pay.” There are also cases where fake shopping sites lure people into selling their items after they pay a “security deposit” which they of course do not get back.

2. Attracting victims with attractive prices

Prices advertised on fake shopping sites are much lower than those offered by real retailers, making fake online stores attractive to deal-hungry shoppers. Most fake websites offer popular, expensive items, such as designer clothing or game consoles.

In order to pressure users into making a quick decision, scammers often resort to outdated tactics such as claiming products are in high demand, almost sold out, or only available for a limited time.

3. Misleading the victim

Although a small percentage of fraudulent websites may offer cheap counterfeit products, most are designed to steal money or personal information.

Users who send cryptocurrencies to the address scammers provided will likely never receive the products they paid for, and requesting assistance from customer service can lead to another opportunity for scammers to request payment for “additional fees.”

Here's a live example

Toilet seat at a discount

The user, who we will call Mark, is contacted by an online “merchant” who claims to have a great offer for a toilet seat, and the “merchant” then sends Mark a link to a fraudulent website with lower prices for these goods than every competitor. Mark was skeptical about it at first because he couldn't find much information from previous buyers.

Unfortunately, Mark got sucked into a 50% discount that expires in one hour and places an order right away, but eventually realizes it's a scam after the seller leaves multiple inquiries regarding his order without any responses.

This example shows typical characteristics of a fake shopping site, which are:

  • Offering products at a cheaper price than the market value

  • Don't communicate anything to the customer

  • It has no reviews (or sometimes unusually positive reviews) from previous buyers

Tips to protect yourself from shopping scams

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

  • Read reviews from other customers before purchasing. Pay attention to the wording on the site and the percentage of positive reviews, as every product, no matter how good, will have a significant share of negative reviews.

  • Don't believe messages designed to pressure you into sending crypto before you've done your due diligence. For example, fake shopping sites might have phrases like: “Hurry!” Only 2 items left in stock!" or "Discount expires in 10 minutes!"

How to spot a fake shopping site

Check the URL

Fraudulent websites often appear from the outside to be identical to the official web page of a legitimate retailer. Before clicking on any website link, check the URL to make sure you are in the right place.

Scammers usually use domain names similar to the official URL. For example, they might rearrange a few letters of "binance.com" as "biananc.com".

Do your own research (DYOR)

Check the domain on a website checker, such as Google's Transparency Report. You can also click the lock icon next to the URL in the address bar to view the website's security certificate, and this should show important information such as registered company name, country of origin, province or state, and region.

Please note that these are just some steps you should take before trusting a website. Don't automatically trust a URL checker or Security Certificate, as scammers have found ways to bypass both.

Look for troubling signs

When creating a fake shopping site, scammers prioritize speed over quality to maximize the damage they can do before the domain is taken down.

You will find that fake shopping sites are often full of misspelled words, grammatical errors, low-quality images, and missing web pages. Be careful if you see any of these errors.

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

What to do if you get scammed

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

  • If your Binance account has been hacked, disable your account and follow the steps in this guide: How to report scams to Binance Support.

  • Report the scam to the police. Binance works closely with law enforcement authorities, and our cooperation often results in successful detections and seizures.

  • Be wary of "recovery services". Although some of these services may provide legitimate assistance, many often make false promises or ask for upfront payments. Don't be fooled twice.

We also encourage all users, new and old, to read our anti-scam series to better prepare themselves against common cryptocurrency scams.

  • Learn about scams

  • Your guide to spotting scams: A clear and concise guide to the most common scams in the cryptocurrency industry

  • Your guide to spotting scams: Fake investments in cryptocurrencies you should beware of

  • Your guide to spotting scams: Warning signs of spotting a scam

Disclaimer and Risk Warning: This content is provided to you on an “as is” basis for general information and educational purposes only, without representation or warranty of any kind. The information here 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 fall as well as rise and you may not get back the amount invested. You are solely responsible for your investment decisions and Binance is not responsible for any losses you may incur. This is not financial advice. For more information, see the terms of use and risk warning.