26 November 2023
Ed Seaford – In the wake of the recent Black Friday sales, a critical issue has come to light, as highlighted in the Australian Competition and Consumer Commission’s (ACCC) latest blog. The increasing trend of scam websites impersonating reputable Australian retailers poses a significant threat not just to consumers but also to the integrity and trust of Australian brands. As a brand protection consultant, I delve into this issue, offering a coal-face perspective on the challenges and solutions.
The Rising Tide of Online Impersonation
The ACCC’s alarming report indicates a surge in fake online stores, particularly targeting well-known Australian fashion and footwear brands. Prior to the Black Friday event, there were over 2,760 reports of such frauds this year leading to substantial financial losses, the threat is both real and escalating. This rise in sophisticated online scams during peak shopping periods like Black Friday and Cyber Monday is a red flag for both consumers and brands.
Fake Websites: Sophistication of Scams
The current wave of online scams involves not just creating convincing website facades but also employing deceptive strategies that blur the line between authenticity and fraud. Scammers register fake domain names with a .com.au suffix, a tactic that lends an air of legitimacy often associated with established Australian brands. Furthermore, these counterfeit websites are not mere superficial imitations. Scammers meticulously replicate every aspect of a legitimate brand’s website, including layout, color scheme, logo, product catalog, and contact information. This detailed duplication makes it significantly challenging for consumers to distinguish these fake sites from real ones at a surface level.
A syndicate, referred to by brandsec as the “Outlet Scammers,” specializes in creating counterfeit versions of prominent brands’ websites, often utilizing less common top-level domains (TLDs) like .store, .cyou, and .online. These scammers not only illicitly use the brand’s name but also incorporate terms like “outlet,” “discount,” or “sale” to attract unsuspecting customers. They adeptly leverage social media marketing and SEO strategies to promote their heavily discounted products (that don’t exist). To further the illusion of legitimacy, they display fabricated pop-ups of recent sales. Unfortunately, customers deceived by these schemes never receive their products, leading to a surge of complaints and significant reputational damage to the impersonated brands.
A syndicate called the “Outlet Scammers” have produced hundreds of fake websites, such as the site above
Social Media’s Double-Edged Sword
Scammers replicate brands’ omnichannel marketing efforts, actively engaging their customers on social media. The ease of creating and promoting on these platforms allows scammers to quickly reach potential victims. They often create advertisements or sponsored posts that mimic the style and messaging of legitimate brands, thereby misleading consumers into visiting their fraudulent websites. They will also engage customers on official channels using confusingly similar handles.
Scammers use targeted social media ads to redirect users to fake websites. These ads, resembling legitimate brand promotions, are designed to be highly engaging and shown to the most susceptible users. Once clicked, these ads lead to fraudulent sites offering unrealistically discounted products or services. The scam sites often solicit personal and payment information, but the promised products or services are never delivered.
Prompt Action and Reporting
Prompt action and reporting are crucial in combating fake websites and social media posts. Quick identification and reporting of these fraudulent activities enable faster takedowns, significantly reducing the damage. Brands should be prepared with a crisis response plan for instances of impersonation, ensuring immediate and effective action to protect their reputation and the public.
Moving Forward: Strategies and Recommendations
- Investing in Technology: Leveraging advanced monitoring and enforcement technologies for can help in early detection and swift action against impersonation.
- Legal and Regulatory Advocacy: Pushing for stronger laws and regulations to combat online fraud is crucial. As professionals, we must advocate for more stringent measures to protect both brands and consumers.
- Continual Vigilance and Adaptation: The landscape of online scams is ever-evolving. Continuous learning, adaptation, and innovation in brand protection strategies are essential.
The ACCC’s blog serves as a wake-up call to the growing threat of online brand impersonation. As a brand protection consultant, I emphasize the need for a multi-faceted approach involving technology, education, collaboration, and advocacy. Together, we can forge a safer online shopping environment, safeguarding the interests of Australian brands and consumers alike.
About brandsec
brandsec is an Australian domain name management provider that offers online brand management solutions to corporate and government organisations.
Our services include domain name management, domain name security, domain name policy development, dispute management, monitoring, and enforcement services. Additionally, brandsec offers a comprehensive online brand protection service that covers various platforms such as websites, social media, email, and online marketplaces. The service addresses issues related to counterfeiting, fakes, copyright infringement, intellectual property (IP) matters, piracy, and other intellectual protection-related issues.