Small businesses across various industries are facing an onslaught of attacks from online scammers who use their videos, logos, and social media posts to assume their identities and sell cheap knockoffs or simply take customers’ money. Meanwhile, Meta, Amazon, and other tech giants are doing little to help them.
The Wall Street Journal reports that the rise of social media, online sales platforms, and AI technology has made it easier for even the smallest businesses to reach customers across the globe, but it has also opened up new opportunities for scammers. Copycats are using advanced tactics, such as outbidding legitimate brands for top positions in search results and leveraging artificial intelligence to avoid language or spelling errors that often signal fraud.
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Jen Rose, a ceramist from Dallas, has seen hundreds of fake listings pop up on Amazon and other shopping platforms, using her face and images to steal customers from her handmade Bee Cups. “They are taking my images that show my face and my employees,” said Rose, who receives about 25 emails a day from people complaining about receiving plastic cups or requesting refunds.
Darn Tough Vermont, a maker of merino socks, has also been targeted by scammers promising large discounts on their products. The ads carried Darn Tough’s logo, images, and wording, making it difficult for customers to differentiate between real and fake listings. Ryan Dahlstrom, global director of digital commerce for Darn Tough, spent half of his day, five days a week, tracking down and taking down these scams.
Jim Carter, an industrial designer who started Ideam in 2020, saw his sales of Cascade Wild Bird Feeders tumble from $54,000 to just $537 last August as one-star reviews for impostor bird feeders piled up. Carter estimates they have lost more than $400,000 in sales and spent nearly $100,000 fighting fakes.
Policing copycats is particularly challenging for small businesses with limited financial resources and few employees. While online giants such as Amazon and Meta Platforms say they use technology to identify and remove misleading ads, fake accounts, or counterfeit products, small businesses are at a significant disadvantage. It’s clear that tech giants are not stepping up to protect small businesses from the seemingly unlimited number of scammers, many originating from foreign countries.
Read more at the Wall Street Journal here.
Lucas Nolan is a reporter for Breitbart News covering issues of free speech and online censorship.
