Caught in a Ghost Store Trap? Here’s How to Protect Your Wallet This Black Friday

Ghost stores are on the rise this Black Friday, scamming Australian shoppers with fake products. Learn how to spot them and protect yourself from online fraud.

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Caught in a Ghost Store Trap? Here’s How to Protect Your Wallet This Black Friday
Credit: Canva | en.Econostrum.info - Australia

Black Friday is just around the corner, and while the deals are tempting, there’s a new risk lurking for Australian shoppers: “ghost stores.” These online scams promise high-quality products, but deliver nothing—or worse, cheap knock-offs. So, how can you avoid falling for these traps?

The Growing Problem of Ghost Stores

Ghost stores are a relatively new but increasingly common issue in the world of online shopping. These are websites that pretend to be legitimate local businesses but are actually run by scammers. They may advertise “premium” goods, offer steep discounts, and claim to be local, only for customers to receive cheap, low-quality knock-offs or nothing at all. The websites often disappear soon after the transactions, making it nearly impossible for consumers to get their money back.

Just ask Louise Hayward from Sydney. She found an ad on social media for a store selling “handmade linen garments” at an unbelievably low price. After spending almost $500, she was excited to update her wardrobe—until the package arrived. Instead of the handmade linen dresses she expected, she got polyester knock-offs that barely resembled the photos on the website. Not only was the product far from what she’d ordered, but she was stuck trying to recover a refund for a product that never lived up to its promises.

Sadly, Louise’s story isn’t unique. Her partner, Michael, had a similar experience with a different ghost store, receiving a shirt that looked like it was made for a child. When he tried to return it, he was told to send it to a warehouse in China—a move that only raised more red flags. Both of them eventually managed to get partial refunds, but this doesn’t fix the bigger problem of these ghost stores tricking shoppers.

How to Spot a Ghost Store

The Australian Competition and Consumer Commission (ACCC) is sounding the alarm, and rightfully so. As more people dive into the online shopping frenzy, ghost stores are becoming harder to identify. So, what can you do to protect yourself? First, be skeptical of stores that offer absurdly low prices on items that seem too good to be true. If the site claims to be a local business, but the return policy asks you to send goods overseas, that’s a big red flag.

Also, check for basic contact details. No physical address or phone number? That’s not a good sign. If you’re unsure, you can use tools like Google Lens or a reverse image search to check if the images on the website have been stolen from other sources. Another telltale sign is the website’s speed and longevity. If it’s a brand-new site with few reviews or seems hastily put together, it’s worth questioning whether it’s worth your time and money, explains ABC.

The Toll on Real Businesses

It’s not just consumers who are getting hurt by ghost stores—real Australian businesses are too. For example, Nicholla Thompson, a Tasmania-based silversmith, found that her unique designs were being stolen by these scammers, who used her images to sell cheap knock-offs. She was devastated as her customers reached out, confused about why they’d received inferior products. This kind of theft, where scammers hijack images from legitimate businesses, isn’t just damaging for the original creators; it also erodes trust in the whole online shopping ecosystem.

Protecting Yourself: What You Can Do

To protect yourself, stay vigilant, especially during high-sales events like Black Friday. Check the website’s details carefully, read the fine print, and, if possible, search for reviews and any customer feedback before hitting “buy.” If something feels off, trust your instincts. And if you do find yourself scammed by a ghost store, report it to the ACCC or your local consumer protection authority. The more these scams are reported, the quicker they can be shut down.

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