Modus Operandi | Image: CloudSEK
The integrity of online shopping is under siege by fraudulent review networks, as detailed in a recent report by CloudSEK. The investigation uncovers a well-orchestrated scheme where eCommerce sellers collaborate with intermediaries to generate fake positive reviews, misleading consumers and tilting the competitive landscape in their favor.
Fake reviews have long plagued online marketplaces, but CloudSEK’s findings reveal a sophisticated ecosystem involving multiple players—sellers, marketing agencies, mediators, and recruited reviewers—working together to manipulate product ratings. According to the report, “A fraudulent review scheme is an unethical practice commonly found on eCommerce platforms, where sellers collaborate with intermediaries to manipulate product ratings and mislead potential buyers.”
The process is structured to ensure seamless execution. Sellers fund operations, marketing agencies manage the network, mediators track transactions, and recruited individuals leave deceptive reviews in exchange for financial incentives or full refunds. This elaborate setup distorts competition and erodes trust in online shopping.
CloudSEK’s investigation outlines the structured approach taken by fraudsters:
- Collaboration with Marketing Agencies – Sellers partner with intermediaries, often referred to as “marketing agencies,” which organize fake review operations.
- Mediators Managing Transactions – A mediator oversees internal portals to track customer details, order IDs, and refund requests. These mediators coordinate peer groups across multiple WhatsApp and Telegram channels.
- Recruitment of Reviewers – Participants are recruited through peer networks. They purchase products via affiliate links, submit order details, and later post misleadingly positive reviews.
- Submission of Fake Reviews – Reviewers post five-star ratings and glowing testimonials, often without testing the product. Once the review is submitted, they share proof with the mediator.
- Refund and Compensation – In exchange, reviewers receive a full or partial refund, making the process virtually cost-free for them while inflating the product’s credibility.
One particularly alarming tactic is the “empty box deal.” As CloudSEK notes, “Some sellers employ an ‘empty box deal’ strategy to manipulate reviews. In this scheme, once a reviewer agrees to participate, they provide their order ID and other details. The seller then ships an empty box instead of the actual product.” Despite receiving nothing, the reviewer posts a positive review, secures their refund, and even earns a small commission.
CloudSEK’s research categorizes the key actors in this fraudulent network:
- Sellers: The main beneficiaries, funding review manipulation to boost sales.
- Marketing Agencies: Organizers who act as intermediaries between sellers and fake reviewers.
- Mediators: Operators managing internal databases and ensuring smooth execution.
- Peer Networks: Groups on WhatsApp and Telegram that distribute affiliate links and coordinate reviews.
- Reviewers: Individuals who buy products, post fake reviews, and claim refunds.
The investigation revealed that some fraudsters had even developed internal portals to manage orders, refunds, and payments. CloudSEK’s team identified one such portal, which, while now inactive, had facilitated transactions totaling over 1.4 million rupees across 3,500 orders.
The consequences of fake reviews extend beyond misleading buyers. As CloudSEK highlights, “Sellers using these deceptive tactics gain an unfair advantage over ethical businesses that rely on authentic, high-quality products and genuine customer feedback.”
Consumers make purchasing decisions based on manipulated ratings, often ending up with subpar or outright fraudulent products. Meanwhile, honest businesses that refuse to engage in such tactics struggle to compete against artificially boosted competitors.
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