Fraud on the Internet: Google advertising leads to a fake shop?

Fake shops could be behind around 20 percent of the ads in Google search results (“Google Ads”). Is the company doing enough to combat this?

Three refrigerators for just under 200 euros? Anyone searching for a product on the Internet will quickly find attractive offers from online shops. Such offers are particularly popular on Google. sponsored product ads displayed high up in the search results: particularly cheap offers that exactly match what you are looking for. But behind the prominently placed search results there are not always reputable offers and websites, as a market check research shows.

The rip-off fraudulent Fakeshops There is nothing new about this on the Internet. What is new, however, is that operators of such sites are apparently using the Google search engine as bait. Anyone who wants to place links to their products prominently on Google has to pay for it – we are talking about sponsored search results. And this is exactly what fraudsters are now allegedly exploiting to lure customers into a trap.

Fake shop operators place ads on Google Shopping

Gregor Ambros from Cottbus has examined the approach of Fakeshop-operators on the Internet. He himself has become a victim of fraudulent activity on the Internet, he says. He runs two online shops with products from the Spreewald. But his imprint and the address of his company recently appeared on another website: the supposed online shop werners24.de, which no longer exists. Fraudsters simply used the address details from his website Gourmeo 24 for their fake websites, Gregor Ambros told Marktcheck.

He believes that the fraudsters Buy ads on Googleto lure their victims into the trap. “From what we saw, they placed massive ads on Google Shopping and actively promoted products in order to become more visible.” Normally, a newly set up web shop would not appear so high up in the search results otherwise. “That was probably the goal: to actively advertise there in order to get people to the site.”

Tip: Recognize whether an online shop is reputable – or a scam

Fake shops on the internet often lure customers to their sites with particularly cheap offers – and with a professional appearance. According to the consumer advice center, many dubious or fraudulent sites are often copies of websites or shops that actually exist. Terms and conditions or the imprint can also be copied.

The following criteria can be the first signs of fraud:

• A well-known Internet address has been slightly modified – for example, the domain ends in “.info” instead of “.de”
• During the ordering process of the online shop, only advance payment (bank transfer) is accepted at the end
• There are no reviews on well-known review portals, in social media or forums – on the shop’s own website, however, there are only positive
• The name of the site does not match the products offered
• If there is no imprint, this should make you skeptical. The imprint must include an address and email address that can be verified. Any commercial register numbers can also be checked.
• If an order is placed, you do not receive a (correct) order confirmation
• Specified bank details are unusual, e.g. located abroad

The consumer advice centers offer a page where Internet addresses can be checked: Click here to go to the Fake Shop Finder.

An insider suspects that Google makes a lot of money with the fake shops

Industry experts are also observing this approach. In an interview with Marktcheck, one of them reported that he regularly Fakeshops behind advertisements and report them to Google. He wants to remain anonymous out of fear of the fake shop operators. In his experience, the tech company often reacts to the reports for weeks not, he says. During this time, many customers could continue to Fraud victims become.

He estimates that in 2023, over 300,000 people in this country will have fallen victim to fake shops – and the damage will be around 100 million euros. “You can clearly say that Google is doing far too little,” he says. In his eyes, the company is thus squandering the trust of consumers. He often asks himself why Google often does nothing for so long: “My only explanation is that they are doing this earn money – and accept it negligently. And maybe they don’t care.”

Background: Problem also affects platforms such as Facebook or Instagram

Users also end up on fraudulent websites via advertisements on other large internet companies. The advertisements on Facebook, Instagram or Tiktok, for example, also contain links to dubious or fake shops, subscription traps or dubious investment offers.

On the Austrian side onlinesicherheit.atoperated by the Austrian Chancellery and the A-SIT Center for Secure Information Technology Austria, warns against this – and points out that the problem is widespread. Here, too, the question is raised as to why the platform operators do so little to combat dubious advertisements. “The reason for this is simple: the advertising business is profitable,” is the response on the advice page of the Center for Secure Information Technology Austria. Serious accusations are being made against platform providers such as Facebook, Instagram and Tiktok.

Although there are half-hearted attempts by the operators of major social media to stem the flood of dubious ads using algorithms and reporting mechanisms, this is only happening with little success. “Even the ads reported by users remain online in many cases – although the platforms become legally responsible for fraudulent content as soon as they become aware of it.”

Antitrust expert sees the internet giant as responsible

Does the search engine giant Google really make it so easy for fraudsters? During the research, Marktcheck makes a sample and lets the industry expert search for high-pressure cleaners. This is to show whether sponsored products from fake shops are also displayed. And indeed: in 35 advertising spaces, the industry expert finds eight fake shops within a short time – a rate of 25 percent in this sample.

The insider raises serious allegations against Google: He estimates that the internet giant could earn around 20 million euros just from advertisements from fake shops. “So Google is making massive profits from the fraud, that’s the scandal.”

Attorney Professor Thomas Höppner has been involved in many antitrust cases against Google, including before the European Court of Justice. He is familiar with the company’s business practices. When it comes to paid advertisements that lead to the pages of fake shops, he believes Google has a responsibility. One could expect the company to check carefully whose advertisements are displayed on the first page of results, says Professor Thomas Höppner: “So with this prominent position that is given to individual shops and with which one earns money, one also has the responsibility to take a close look and weed out those that definitely should not end up with the end customer.”

Google itself refers to its strict guidelines

What does the company itself say about this? How can it be that even reported fake shops are often only removed after weeks from the sponsored products? Marktcheck confronts Google with the results of its research.

The company writes: “The protection of our users is our top priority. We have strict Advertising policiesthat determine what types of ads and advertisers we allow on our platforms. We enforce our policies rigorously, and when we find ads that violate them, we remove them. (…)”

However, Google does not answer the question about the estimated advertising revenue of around 20 million from advertisements for fake shops. And the question of why reported fake shops often only disappear from the sponsored search results after some time remains unanswered.

Tip: What to do if you have fallen for a fake shop?

Have you ordered something but not received an order confirmation? The goods have not arrived? Or are you simply having doubts? Many people fall victim to fake shops. The Federal Institute for Information Security (BSI) and the Consumer Advice Center have developed key advice on what to do in this case:

• If possible, you should stop the payment – so contact your bank as soon as possible. Transfers cannot usually be recalled, but with direct debits the payment can be refunded up to eight weeks later.
• Collect and save all evidence – for example, possible emails, screenshots from the fake shop’s website.
• If you suspect fraud, you should file a criminal complaint with the police. This can also be done online at the online police stations of the federal states. The police can only take criminal action against the operators of fake shops if a complaint has been filed by a victim.

There are now also ways to report fake shops and fraud cases online:

• Dubious websites and new fake shops can be reported via the Watchlist Internet information platform.
• Fraud cases are also collected on the HinweisHelden.com website. These reports are then forwarded to the relevant platforms and website hosts.