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Fake stores and online counterfeits
Fake stores can look deceptively real and cause victims significant financial loss. Read how to recognize fake stores and protect yourself from online counterfeits.
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“I really wanted a Louis Vuitton bag at a reasonable price,” says Barbara B. (age 37, not her real name). “So I looked online.”
She soon came across an online store with an “unbeatable” offer – a Louis Vuitton bag for CHF 180 instead of CHF 1,800. The shop looked reputable and the “.ch” address indicated a Swiss provider.
Barbara paid and waited several weeks in vain for her new bag. Instead of the bag, she received a letter from the Customs Directorate. She had been duped into buying a counterfeit from China.
It is increasingly easy for criminals to open online stores, deceive unsuspecting customers and obtain customer data such as credit card details. Either the products do not actually exist or they are cheap counterfeits of branded goods from China. However, the websites with the descriptions and photos or images look genuine enough. To avoid falling victim to fake stores or counterfeit products, you should know how to identify them.
It is almost impossible to quantify the number of fake stores, because they are only likely to be registered and removed from the internet if their victims report them. However, many people shy away from the effort involved or feel embarrassed that they fell for an online scam. The number of fake online stores is therefore likely considerable. The nature of online fraud can vary greatly, which often makes it hard to identify. If you are the victim of any of the following scenarios, you have almost certainly fallen for an online scam.
Unlike fake stores, where the website is merely a facade for fraud, the increasingly popular drop-shipping stores operate in a legal gray area. They often sell inferior products at excessive prices. The operators purchase the goods at very low prices from large Chinese marketplaces and then sell them at a significantly higher price. Although this method does not necessarily involve a fake store or fraud, buyers still receive very inferior products, often touted as high-quality. Many features typical of fake stores also apply to drop-shipping stores. If you value quality, you should check carefully whether you are looking at a drop-shipping offer.
Fake stores or websites selling counterfeit goods can be identified with a little knowledge. The following questions will help you spot whether a store is genuine or not:
An online store is not necessarily reputable just because the web address ends in “.ch.” According to Swiss consumer protection, many fake stores use this ending to pretend to be a Swiss company.
Sometimes a sense of uncertainty remains, even though the criteria you checked against do not clearly point to a fake store. There are then other ways of verifying the credibility of the website. Even a brief search for customer reviews and testimonials can be very revealing. Many independent portals compile a list of these reports and provide a clear assessment of whether a shop is genuine or not. However, be skeptical if positive customer reviews all use the same format or are very similar. Many dubious merchants attempt to increase trust through fictitious reviews.
Quality seals such as “Trusted Shops” or “Swiss Online Garantie” are good indicators of authenticity. Nonetheless, caution is always advised with quality seals, as they can also be used unlawfully. Some shops also use fictitious seals whose sole aim is to convey authenticity. If the shop appears suspicious to you, you can also search for it on the “” where many fraudulent or problematic online shops are listed.
Finally, the payment options also provide an indication of the shop’s credibility. Fake stores prefer payment by credit card. Buyers should, however, always rely on payment methods with buyer protection, regardless of whether the shop is authentic or likely fake. Avoid making payments in advance. Branded goods such as the latest mobile phone model should always be purchased directly from the manufacturer or certified retailer to prevent fraud. To ensure your credit card details are not being used without your permission, you should check your credit card statement regularly.
If you realized shortly after the payment that you have been scammed, you should immediately dispute the charge on your credit card. Ideally, you may even be able to reverse the payment. Frequently, criminals use your credit card information to commit other offenses. You should therefore block your card. If you only realize later on that you have been scammed by a fake shop, always report the shop to the local police station. Doing so will allow the website to be included on a list and blocked. If you do not report the fraud, other buyers may also fall victim.
Fake stores or websites selling counterfeit products are easy to set up and look deceptively real. If you wish to shop online, you should always verify the credibility of the online store and, if you are not sure about it, it is better to refrain from any purchase altogether. Stores that seek only financial gain often lack a legal notice, offer few withdrawal rights and sometimes have a lot of spelling errors. Be especially careful with promoted posts. Even a brief search for the website name and customer reviews can be very informative. If you fall victim to a fake store, report the fraud to your bank and the local police.
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