Navigating the Rise of 'Ghost Stores': Online Scams & Protecting Your Business and Customers

What Are ‘Ghost Stores’ and Why Should You Care?

In today’s rapidly growing eCommerce landscape, Australian small businesses face not only fierce competition but also rising threats from fraudulent operators. Among the most concerning trends is the emergence of ‘ghost stores’—fake online shops that deceive customers with non existent products and bogus tracking numbers.

These ghost stores lure shoppers in with compelling ads, often through social media, only to disappear after pocketing payments. Meanwhile, legitimate businesses are left dealing with shaken consumer trust and a market tainted by scepticism.

How Ghost Stores Operate: The Anatomy of an eCommerce Scam

Ghost stores typically:

• Mimic real brand aesthetics

• Offer deep discounts or viral products

• Use fake tracking numbers from real carriers (such as Australia Post or Aramex)

• Disappear within weeks or rebrand under a different name

What’s particularly damaging is that these fraudsters often use authentic looking carrier integrations, which confuse consumers and crumbles confidence in legitimate businesses using the same platforms.

A recent report by Scamwatch shows Australians lost over $8.5 million to online shopping scams in 2024 alone, with many complaints involving fake tracking updates.

Why This Matters for Your Business

Even if you’re running a legitimate, trustworthy eCommerce operation, ghost store activity can:

• Devalue customer trust in online shopping as a whole

• Lead to payment gateway scrutiny if customers falsely associate your brand with fraud

• Increase chargebacks or reviews from confused buyers if they’ve been scammed by lookalikes

• Undermine platforms like Shopify and WooCommerce that you rely on

Five Ways to Protect Your eCommerce Business and Customers

1. Verify and Showcase Your Legitimacy

• Display secure payment icons (SSL, PayPal, Afterpay).

• Include a clear ABN, physical address, and contact page.

• Create an “About Us” page with a founder photo and story to humanise your brand.

  
  

2. Provide Authentic Tracking & Shipping Updates

• Use trusted Australian carriers like Australia Post, Sendle, or Aramex.

• Ensure your order confirmation emails and tracking links are accurate, branded and updated regularly.

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3. Leverage Social Proof and Customer Reviews

• Post regular testimonials or user generated content.

• Link verified reviews from platforms like Google, Trustpilot, or Yotpo

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4. Educate Your Audience

• Share blogs or social media content explaining how to spot fake stores and protect themselves.

• Use email marketing to remind customers about safe online shopping practices.

• Educate your customers about Ghost Stores and how to protect themselves from online scams.

5. Monitor Brand Impersonation

• Set up Google Alerts for your business name.

• Report fraudulent ads impersonating your store on Facebook, Instagram or Google.

Bonus Tip: Leverage Trusted eCommerce Platforms Wisely

Using Shopify’s built-in fraud analysis tool or integrating with apps like Signifyd and ReCharge, helps flag high-risk orders automatically. Most platforms also allow you to verify domain reputation, install customer review widgets, and run multi-channel fulfilment with higher transparency.

The Bottom Line with Online Scams and Ghost Stores

The digital storefront is now the lifeblood of most small businesses—but it’s also vulnerable. By actively educating your customers, safeguarding your brand and tightening operational security, you can rise above the noise of ghost stores and build lasting trust in your eCommerce experience.

Customers don’t just want products—they want assurance. Deliver that, and they’ll keep coming back.

Ready to build trust and streamline your logistics?

Partner with Arda Logistics to simplify fulfilment, protect your customer experience and stay ahead of emerging eCommerce threats.