According to The Guardian, a Chinese network that runs countless fake online stores has scammed more than 800,000 people in the United States and Europe.
These stores trick people into sharing card details and other sensitive personal data, touting discounted products from Dior, Nike, Lacoste, Hugo Boss, Versace and Prada, as well as many other premium brands.
A woman shopping online (Kurt “CyberGuy” Knutsson)
How this online scam works
The Chinese network has more than 22,500 active fake online stores, according to an international investigation by The Guardian, Die Zeit and Le Monde. These online stores lure people into revealing their credit and debit card details, names, phone numbers, postal and email addresses by claiming to offer discounted designer brands.
There are two levels to this scam. At the first level, fake payment gateways trick people into entering their credit card information but don’t charge them. This allows scammers to steal card details without collecting money. At the second level, criminals create fake online stores or other platforms where they actually take money from people.
The Chinese network uses expired domains to host their fake stores, which helps them avoid detection by websites or brand owners. The network reportedly has a database of 2.7 million of these orphan domains and conducts tests to check which ones are best to use.
To date, approximately 800,000 people, primarily in the US and Europe, have shared their email addresses, and 476,000 of them have also provided their debit and credit card details, including three-digit security numbers. . The first fake stores in this network were created in 2015. Since then, the group may have attempted to steal up to approximately $54.2 million.
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Online shopping man (Kurt “CyberGuy” Knutsson)
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What did those affected say?
Many people thought these fake online stores were legitimate and placed orders thinking they were getting a good deal. Melanie Brown from Shropshire, England, told The Guardian that she was looking for a new bag and found a leather bag from her favorite German designer, Rundholz, for 50% off at one of these fake online stores. Tempted by the offer, she added it to her cart, along with other designer clothes from Magnolia Pearl, for a total of £1,200, which equates to approximately $1,529 for 15 items. However, Brown never received the items.
The Guardian interviewed 19 people from the US and UK and revealed that these websites were not designed to sell counterfeit products. Most received nothing, while some received incorrect items. A German buyer paid for a jacket but got cheap sunglasses. One British customer received a fake Cartier ring instead of a shirt, and another received an unbranded blue sweater instead of the Paul Smith one he ordered.
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What does this online scam mean for your privacy and security?
The fake online store scam does not cause you immediate monetary harm. As The Guardian reports, “many of those who tried to buy never lost money. Either their bank blocked the payment or the fake store didn’t process it.”
However, in all cases, these scammers obtained your details, including your address and card details. This data can be used in many ways. Scammers can use it to steal more money than you would spend in the online store. They may pretend to be your bank or someone you know to trick you into giving them money. Additionally, they may sell this data to dark web companies or criminals for marketing purposes.
A man working on his laptop (Kurt “CyberGuy” Knutsson)
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7 proactive measures you should take to protect your data
Online shopping scams can affect everyone. Here are seven steps you should take to protect your money and personal data:
1. Invest in personal data removal services: If you have ever been scammed through these fake online stores, your details are probably available online. Personal data deletion services can help by searching your data on the many people search and data broker websites and requesting its deletion.
While no service promises to remove all of your data from the internet, having a removal service is great if you want to constantly monitor and automate the process of removing your information from hundreds of sites on an ongoing basis over a longer period of time. Check out my top picks for personal data removal services here.
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2. Avoid Tech support phone scams: Since hackers have your name and contact number, they may try to contact you by posing as an employee of a popular technology company. They could say they are from Apple, Microsoft, Amazon or any other big company. Always check to see if the tech support person you are speaking to actually works for the company.
3. Be careful when buying online: Only buy from well-known and reputable websites that you trust. Be wary of unknown online stores offering huge discounts on luxury brands. Verify the website URL and security credentials (look for https:// and a lock icon) before entering payment information. Use credit cards instead of debit cards for online purchases, as credit cards offer better protection against fraud.
4. Be careful with mailbox communications: Scammers may also try to scam you by mail. Fake online stores have access to your address. They may impersonate people or brands you know and use topics that require urgent attention, such as missed deliveries, account suspensions, and security alerts.
5. Monitor your accounts and transactions: You should periodically check your online accounts and transactions for suspicious or unauthorized activity. If you notice anything unusual, report it to the service provider or authorities as soon as possible.
6. Use identity theft protection: Identity theft protection companies can track personal information such as your home title, Social Security number, phone number, and email address and notify you if it is used to open an account. They can also help you freeze your bank and credit card accounts to prevent further unauthorized use by criminals. Check out my tips and top picks on how to protect yourself from identity theft.
7. Secure your devices and accounts: Use strong, unique passwords for all your online accounts and enable Two-factor authentication when it is possible. Keep your updated devices with the latest security patches and use powerful antivirus software.
The best way to protect yourself from clicking on malicious links that install malware that can access your private information is to have antivirus protection installed on all your devices. This can also alert you to any phishing emails or ransomware scams. Get my picks for the best antivirus protection winners of 2024 for your Windows, Mac, Android, and iOS devices.
Kurt’s Key Takeaways
Online scams are a growing problem and you should remain alert. Scammers go to great lengths to access your data and sell it to companies or other scammers. Tech giants must implement stricter measures to protect you from being scammed. Also, when shopping online, be sure to buy from trusted suppliers and verify before entering any personal information. Also, be sure to follow the seven steps we outlined above to protect your money and personal data. You’ll be glad you did.
Do you think online shopping is not safe? Have you started buying things offline due to privacy and security concerns? Let us know by writing to us at Cyberguy.com/Contact
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