CloudSEK exposes how Fake Reviews are manipulating Online Shopping

CloudSEK, a leading cybersecurity intelligence firm, has exposed a widespread fraudulent review scheme operating on popular e-commerce platforms. The research by CloudSEK’s Threat Intelligence team reveals a structured network of scammers manipulating product ratings and reviews to mislead consumers and gain unfair market advantages.

CloudSEK's investigation highlights how sellers collaborate with so-called “marketing agencies” to generate fake positive reviews, artificially inflate product ratings, and distort genuine customer experiences. This unethical practice not only undermines consumer trust but also creates an uneven playing field for honest businesses.

These agencies employ mediators who manage peer networks across WhatsApp and Telegram groups, orchestrating the mass generation of fake positive reviews. Participants, or “reviewers,” purchase products via affiliate links, post glowing reviews without genuine evaluation, and receive full or partial refunds as compensation.

Mind map of the entire syndicate
CloudSEK’s investigation found that a single mediator generated approximately 4,000 fake reviews over 3-4 months, impacting products worth ₹13 lakh.  With multiple mediators and agencies at play, the total financial impact across eCommerce platforms likely runs into crores of rupees. The report includes real snapshots of Telegram channels, order forms, refund forms, and internal portals used to coordinate this scheme, offering a rare glimpse into its inner workings.

How it works: Mechanics of fraud
The syndicate operates with chilling precision:

Seller collaboration: An e-commerce seller partners with a marketing agency to artificially boost product ratings.

Marketing agency's role: The agency recruits mediators who oversee review manipulation operations.

Mediator management: A mediator maintains internal tracking portals to log customer details, order IDs, and refund statuses.

Peer network formation: The mediator recruits participants through WhatsApp and Telegram groups.

Affiliate link distribution: Participants are provided with specific product links to make purchases.

Fake review posting: After receiving the product, participants submit positive reviews with high ratings, regardless of product quality.

Proof submission: Participants provide screenshots and review URLs as proof of submission.

Refund processing: Upon verification, the mediator processes full or partial refunds to the participants.

Affiliate commission earnings: Peer networks earn commissions through manipulated transactions.

Market manipulation: The product gains artificial prominence, misleading consumers and harming legitimate sellers.

Human cost: Consumers and sellers betrayed
Fake reviews don’t just inflate ratings—they erode trust. Shoppers, relying on reviews to make informed choices, end up with subpar or unsafe products. Meanwhile, ethical sellers who play by the rules lose visibility and revenue, unable to compete with artificially boosted competitors.

Mayank Sahariya, Threat Intelligence Researcher at CloudSEK, said: "By artificially inflating product reputations, these schemes deceive consumers into making uninformed decisions, often leading to dissatisfaction or even harm from substandard or unsafe products. Beyond the immediate impact on buyers, this practice creates an uneven playing field where honest businesses are overshadowed by those willing to game the system. 

"Over time, this erodes consumer confidence in online platforms, making it harder for legitimate sellers to thrive and for shoppers to trust the reviews they rely on. The damage is systemic: it undermines market integrity, stifles fair competition, and ultimately harms the entire digital economy."

The consequences ripple further: platforms risk reputational damage, and regulators are stepping in. In India, laws like the Consumer Protection Act, 2019, E-Commerce Rules, 2020, and Competition Act, 2002 classify fake reviews as unfair trade practices, carrying hefty penalties.

Recommended actions
CloudSEK strongly advocates for a multi-pronged approach to combat fraudulent review practices:

Stronger platform monitoring: E-commerce platforms must enhance AI-driven fraud detection to identify and eliminate fake reviews.

Consumer awareness initiatives: Educating buyers on spotting deceptive reviews and encouraging them to report suspicious activities.

Regulatory crackdown: Authorities should enforce stricter penalties against those engaging in fraudulent rating practices.

Fraud reporting mechanisms: Platforms should facilitate transparent and accessible methods for consumers to report fake reviews.

CloudSEK’s commitment to market integrity
As part of its ongoing efforts to combat digital fraud, CloudSEK remains committed to identifying and exposing deceptive online practices. The company urges e-commerce platforms, regulatory authorities, and consumers to collaborate in maintaining a transparent and fair digital marketplace.