Spotting Fake Shopify Stores: A Guide to Protecting Yourself from Online Scams

Aug 30, 2024
6 minute read
Spotting Fake Shopify Stores: A Guide to Protecting Yourself from Online Scams
Recognizing fake Shopify stores is crucial to protecting your finances and personal information.

Introduction

"I made a purchase on this store yesterday. It was selling discounted brand new alpine ski material. It looked legit, but as I didn't receive an order confirmation number / email, I really think it's a scam." 

As online shopping becomes more popular, so do the scams. Knowing how to identify fake stores can save you money and stress. This guide will help you understand the signs of a fake Shopify store, how to distinguish them from real ones, and what to do if you encounter a scam.


Understanding Shopify and Its Popularity

Shopify is an e-commerce platform that allows businesses to set up online stores easily. It has gained immense popularity due to its user-friendly interface and extensive features. It's popularity attracted scammers too. "It looked legit" from quote, just marks how much Shopify is spread and how many small and large businesses use Shopify to sell products online, making it a trusted name in e-commerce. Beyonce, Gymshark, and Allbirds use Shopify to power their online sales.



Red Flags To Look For In A Fake Shopify Stores

  • Too Good to Be True DealsFake stores often lure customers with prices that are significantly lower than the market rate. If a deal seems too good to be true, it probably is. Do check some of price comparison websites like price.com.

  • Lack of Contact InformationA genuine store will provide clear contact information, including a phone number, email, and physical address. Fake stores often omit these details. If only contact information is an email address, especially if it does not contain domain name, think how easy is to get rid of it. Even if there is an address do take a minute and try to search it on Google Maps for example. Often it can be empty lot or something that does not match with the stores brand.

  • Suspicious Domain NamesBe wary of domains that look like misspelled versions of popular brands or use unusual extensions like .biz or .info instead of .com. Also if the store uses .myshopify.com that could be a warning sign. Legitimate businesses usually invest at least in a domain name.

  • Poor Website DesignLook for signs like low-quality images, broken links, and text with grammatical errors. The choice of theme in some cases can be another warning sign. In the most cases scammers use a free Shopify theme from Shopify Themes as that is a quick way to set store but they also can use a paid themes, bought once and used many times or obtained illegally. But note that a lot of legitimate businesses use free themes, mainly in the beginning but usually invest in professional website design later. To find out how to check what Shopify theme store uses check our guide.

  • Borrowed Content:  A lot of fake stores just copy product images and descriptions from known brands. Look for those brands in product descriptions and legal pages. Use Google image search to find images but also copy parts of description and search for it, Most likely original stores will come up first in search.



How to Recognize a Fake Shopify Store

Check the URL and Domain Name

  • Check for misspellings or extra characters in the domain name that mimic legitimate brands.
  • Check if domain name matches brand name, logo
  • Check the domain name age https://www.whatsmydns.net/domain-age If it is old just month or two it could be a sign of fake shop but also there are a lot of legitimate new stores. Still it is one of signs to be careful.
  • Ensure the website uses HTTPS, indicated by a lock icon next to the URL. This shows that the site is secure.

Read Customer Reviews

Look for reviews on independent sites like Trustpilot or Google Reviews. Be cautious if you only find reviews on the store's own website. Those could be fake or just copied from legitimate website.

Check for Social Media Presence

Legitimate stores often have active social media accounts. Check for regular posts, age of account, customer interactions, and follower counts.

No Secure Payment Options

Trusted stores offer secure payment methods like credit cards and PayPal. Avoid stores that only accept unconventional payment methods. And if store do have a PayPal  do check where would money go before finishing order.

 

What to Do If You Encounter a Fake Store 

Reporting the Scam 

Report the store to Shopify using their 'Report a merchant' feature. Also, inform consumer protection agencies and online scam databases.

 Protecting Your Information

Change your passwords and monitor your financial accounts for suspicious activity if you've shared personal information.

Seeking Refunds

Contact your bank or credit card company to dispute charges. Explain the situation and provide any evidence you have.

Real world example 

Because customers do report any fake stores and Shopify acts fast in the most cases there are not many active stores that users are complaining about. But here is one example, that is either good fake store or bad legitimate business.

From Shopify forum  store in question is crabgrasskiller.ca. 

Positive:

  • Good choice of theme, Impact is one of the popular Shopify themes.
  • Homepage could be better but enough content. Product page have enough information and different options for product quantity.
  • Several good apps chosen.
  • PayPal and Credit card payment options

Negative:

  • Even with big discount product seams expensive.
  • Domain age is about 5 months so still a new store.
  • No contact, business details in Term of service, except an email. But even that email bounce back. Possible that is not configured well but still a bad sign.
  • The latest review beside complaining on product, confirms email issue.
  • Product page emphasize that price is in USD but orders will be shipped to Canada only, poor choice.
  • Impact theme is version 4.3.2, released year before domain name was created.
  • Terms of service mention " United Arab Emirates." as governing law. Credit card form have MADA and OmanNet payment option in Saudi Arabia and Oman. And in PayPal checkout "Constellation Dominion Trading LLC" with not much information online about that company but sounds similar to one from Dubai.

Overall it is a good candidate for a scam but also could be a legitimate business with email problems, old theme and not completely configured properly. Also text in store footer "We're a 100% Canadian company that prides itself in sourcing, manufacturing, staffing and delivering our products, all within Canada!"  but seams to have some connections with UAE. Maybe investors but still not reassuring.

Conclusion

In today's digital marketplace, the convenience of online shopping comes with the risk of encountering fraudulent websites. Recognizing fake Shopify stores is crucial to protecting your finances and personal information. By understanding the common characteristics of these scams, such as too-good-to-be-true deals, lack of contact and business details, poor website design, and lack of secure payment options—you can better navigate the online shopping landscape. 

Always take the time to verify a store’s legitimacy by checking the URL, reading customer reviews, and looking for a strong social media presence. If you come across a suspicious site, reporting it can help protect others from falling victim to the same scam.

Remember, a little caution goes a long way. By staying vigilant and informed, you can enjoy the benefits of online shopping without the fear of being scammed. Share this guide with friends and family to help them shop safely too. Hope that together, we can make the internet a safer place for everyone.