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Executive Summary
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. This deceptive activity is structured, involving a network of bad actors who engage in the mass generation of fake positive reviews in exchange for financial incentives, free products, or other forms of compensation. The primary goal of such schemes is to artificially boost a product’s reputation, making it appear more popular, reliable, and well-reviewed than it actually is. Consequently, this practice leads to unfair market advantages, distorting competition and eroding consumer trust.
Overview of the scheme:
Some sellers on eCommerce platforms are engaging in unethical practices by collaborating with "Marketing agencies"—individuals or groups who are not genuine customers but are hired to generate positive reviews for products. Under marketing agencies, mediators maintain groups of peers and track customer details, order IDs, and refunds while managing groups circling the product across multiple WhatsApp and Telegram channels.
Peers in these groups earn affiliate commissions when Reviewers/users place orders via their links and leave fake positive reviews without assessing the product’s quality. In exchange, users receive full or partial refunds. This manipulation inflates product ratings and distorts genuine customer experiences, undermining trust in the platform’s review system.
As a result, sellers using these deceptive tactics gain an unfair advantage over ethical businesses that rely on authentic, high-quality products and genuine customer feedback. This practice violates the seller’s code of conduct on most eCommerce platforms and can have long-term negative effects on consumer trust and market fairness.
Modus Operandi / (Tactics, Techniques, and Procedures):
E-commerce sellers partner with a so-called "marketing agency" to generate misleadingly positive reviews for their products.
- A mediator within the marketing agency manages internal portals to track customer details, order IDs, refunds, and coordinate peer groups.
- These peer groups operate multiple WhatsApp and Telegram channels to promote products and encourage purchases via affiliate links.
- Users buy products through affiliate links and submit details such as Order ID, product name, order amount, mediator name, and screenshots through an order form.
- After receiving the product, users post positive reviews and upload review URLs along with payment details on a refund form.
- In exchange for these fraudulent reviews, users/reviewers receive full or partial refunds from the mediator.
The fraudulent review ecosystem consists of several key players, each playing a role in sustaining the manipulation:
Seller (E-commerce Vendor):
- The primary beneficiary of the scheme.
- Collaborates with the "marketing agency" to boost product ratings and visibility.
- Provides funds for refunds and commissions.
Marketing Agency:
- Acts as an intermediary between the seller and the fraudulent review network.
- Organizes and manages the operation through a mediator.
- Ensures a steady flow of fake positive reviews to manipulate rankings.
Mediator:
- Works under the marketing agency to oversee the execution of the scheme.
- Maintains internal portals to track customer details, order IDs, refunds, and payments.
- Manages peer groups and ensures smooth coordination between them.
- Processes refunds once users submit proof of positive reviews.
Peer Networks:
- Mediators often operate within closed peer networks, using platforms like WhatsApp and Telegram to distribute affiliate links and coordinate review manipulation
- Peer networks usually get affiliate commissions on products.
Reviewers/Participants/Users:
- Individuals are recruited to place orders and leave fake positive reviews.
- Operate within WhatsApp and Telegram groups to receive product links and instructions.
- Purchase products through affiliate links and submit order details.
- Post positive reviews and provide proof to receive refunds.
- Get full or partial refunds in exchange for their participation.
Attribution and Analysis
So peers list the products received from the seller and promote them across multiple Telegram and WhatsApp groups, encouraging purchases through affiliate links.
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 gives a 5-star rating and uploads a screenshot of the review to a Google Form. Once the review is verified by a mediator, the seller refunds the full product cost along with a commission of ₹50-₹150. This allows sellers to generate fake positive reviews without giving away free products.
The screenshot below illustrates an empty box deal involving a product priced at ₹340, with a commission of ₹130. Once the reviewer completes the deal, they receive a total refund of ₹470, which includes both the product price and the commission.
Once a user or reviewer shows interest in an agreement, the peer shares the product's affiliate link along with Google Forms for Order and Refund. After purchasing through the affiliate link, the user also receives instructions on how to request a refund.
A snapshot of the Order Form containing all necessary fields, including Product Name, Order ID, Reviewer Name, Order Screenshot, Order Amount, and WhatsApp Number.
A snapshot of the Refund Form containing all necessary fields, including Order ID, Seller Name, Review Link, Order Amount, Refund Amount, Order Screenshot, Review Screenshot/Rating Screen Recording, Reviewer Name, WhatsApp Number, and Mediator Name.
Based on discussions within their internal group, we can confirm that eCommerce sellers approach them, offering a good commission in exchange for fake reviews on their products.
A telegram user has given a collaboration message for the seller on their bio.
Cloudsek's research team has come across multiple telegram groups that have been part of this unethical scheme to generate false reviews on the e-commerce platform.
Our team has also identified an internal portal from a specific group that manages order details, refund amounts, seller names, and reviewer names. However, it is currently inactive or may have been shared privately.
However, while the portal was live and publicly accessible, we successfully extracted the data into an Excel sheet. The captured records, covering April to August 2024, showed that refunds totaling 14 lacs+ rupees were processed for 3500+ orders to manipulate ratings and secure positive reviews for the products of well-known brands.
Consequences of Fake Review Schemes
The proliferation of fraudulent reviews has severe consequences for both consumers and the broader eCommerce ecosystem:
- Consumer Deception – Shoppers rely on product reviews to make informed purchasing decisions. Fake reviews create a false perception of quality, leading consumers to buy subpar or even unsafe products.
- Unfair Competition – Honest sellers who refuse to engage in such schemes struggle to compete against those who artificially inflate their ratings. This results in legitimate businesses losing visibility and potential revenue.
- Regulatory and Legal Risks – Many governments and regulatory bodies have cracked down on fake reviews, imposing fines on companies found guilty of review manipulation. Platforms themselves may suspend or ban sellers caught engaging in such practices.
- Erosion of Trust in ECommerce – Over time, widespread fraudulent reviews can damage the reputation of entire online marketplaces, making consumers skeptical of all reviews, even legitimate ones.
Legal Implications in India
- Consumer Protection Act, 2019: Classifies fake reviews as an unfair trade practice.
- E-Commerce Rules, 2020: Prohibits misleading representations of products and services.
- IT Act, 2000: Fraudulent online activities may be punishable under cybercrime laws.
- Competition Act, 2002: Penalizes market manipulation and anti-competitive practices.
Recommended Actions
- Platform Monitoring: E-commerce platforms should deploy monitoring tools to detect fake reviews.
- Consumer Awareness: Educate users on recognizing and reporting fraudulent reviews.
- Regulatory Enforcement: Authorities must enforce stricter penalties on offenders.
- Fraud Reporting: Consumers and ethical sellers should report fake reviews to platforms and regulatory bodies.
References
- #Traffic Light Protocol - Wikipedia
- https://docs.google.com/forms/d/e/1FAIpQLSexXeaooWEM6-HAce0KeDmy-tUTowdI37cSyK0PGa4zUknQUw/viewform
- https://docs.google.com/forms/d/e/1FAIpQLSepcDJqsgZ2JrXNUdZN2Ly2tBkgNjl-IVNBwxutCOiWy3QYvw/viewform