4,000 false reviews in 3-months: E-commerce sites are being rigged
What's the story
CloudSEK, a leading cybersecurity intelligence company, has exposed a sophisticated network of scammers. They are orchestrating fake reviews to manipulate the product rankings and deceive buyers on Indian e-commerce platforms. CloudSEK's investigation revealed that in just three to four months, a single fraudster was responsible for creating over 4,000 fake reviews, influencing products worth ₹13 lakh. With multiple mediators and agencies being involved, the total financial impact could be in crores.
Scheme breakdown
The mechanics of the scam
At the heart of this scam are "marketing agencies" that join hands with sellers to boost product visibility. Such agencies hire mediators who manage review manipulation operations via WhatsApp and Telegram groups. Participants — often everyday users looking for quick money — are given affiliate links to buy products. They leave glowing reviews without properly testing them and, in return, receive full or partial refunds.
Trust erosion
The impact of fake reviews
The mediators track data on internal portals, from customer details to refund statuses. Once a fake review is posted, the participants submit proof — screenshots and links — to get money back. This not only tricks genuine buyers into buying subpar products but also gives dishonest sellers an unfair advantage over ethical businesses. "By inflating product reputations, these scams deceive consumers, stifle fair competition, and undermine integrity of e-commerce platforms," said Mayank Sahariya, Threat Intelligence Researcher at CloudSEK.
Regulatory action
Regulatory response to fraudulent steps
The impact of this scam goes beyond misleading buyers. They erode trust in online shopping, making it difficult for people to distinguish between quality goods and cleverly marketed scams. Meanwhile, the ethical sellers who rely on honest feedback find themselves overshadowed by artificially boosted competitors. In India, laws like the Consumer Protection Act, 2019, and E-Commerce Rules, 2020, classify such fake reviews as unfair trade practices, carrying significant penalties.
Scam prevention
Recommendations to tackle fraudulent review practices
To combat such fraudulent review practices, CloudSEK urges e-commerce sites to enhance AI-driven monitoring systems to detect and remove fake reviews. The firm also emphasizes the necessity for greater consumer awareness, educating customers on how to identify deceptive reviews and report suspicious activity. Additionally, CloudSEK advocates for the establishment of transparent complaint channels, permitting users to flag fake reviews and contribute to a fairer online marketplace.