Fake Merchants

Protect your money when shopping online

Shopping online saves time and often money. Sometimes online shops are the only place where something can be purchased. Online shopping is convenient and essentially anonymous.

Fake merchants take advantage of this. They create a false identity or steal one from someone else and sell tickets, clothing, furniture, accommodation etc.

Ways to tell that a merchant could be fake

  • If it is not clear from the website who the operator of the online store is, i.e., who the cardholder will be entering into  a contract with and who they can enforce their rights against. Also, information about how to file a complaint or claims is completely missing from the store’s website.
  • They do not have their terms and conditions available on their website.
  • They offer ‘brand name’ products at suspiciously low prices (the goods are fake).
  • They do not provide sufficient information about a product.
  • Any terms and conditions only mention the supplier of the goods (e.g. a company from China), but information about this supplier cannot be verified. The website looks like it belongs to a Czech online store (particularly in the case of cheap goods, men’s/women’s shoes, handbags etc.). Although the merchant operates in the Czech market, the business terms and conditions say something like this: ‘The contract and issues related to it are governed by the laws of the People’s Republic of China.
  • They charge hidden costs/fees that are not mentioned anywhere on the website. 

The above characteristic signs don’t apply only to online shops, but also to online markets (vinted.cz, Facebook MarketPlace, etc.). Be wary here as well

 

You can also become a victim if you sell things. The following situation often happens:

  • A seller receives a call from an ‘interested customer’ who, however, asks for payment of a certain amount. They claim that it is a shipping fee, postal insurance etc. They say the seller can increase the price of the goods by this amount. The seller pays the ‘fees,’ but the ‘interested customer’ disappears.
  • An ‘interested customer’ contacts the seller to ask for the seller’s account number to send money for the goods they want to buy. The seller gives this information to the ‘customer.’ The ‘customer’ sends the seller a fake confirmation of payment (e.g., in the form of a fake document or PayPal link). The money of course never appears in the account. The ‘customer’ then begins demanding the goods or a refund. They threaten to call the police. Often they mention Interpol or the FBI. 

If you have fallen victim to a fake merchant:

  • Report them to the police of the Czech Republic. You may think the amount in question is minor, e.g. CZK 400, but if you multiply this number by, for example thirty victims, you get CZK 12,000 as the amount defrauded by the fraudster. If they are not exposed, they will continue to defraud others.
  • Take the police report with you to the nearest branch of ČS or contact our client centre on 800 207 207.

Prevention is better than cure:

  • Read reviews and warnings from other users on the internet (not just on the websites that you shop on).
  • Check the merchant’s website for their terms and conditions, complaints handling policy and information about their company.
  • If the merchant cannot be verified, have any goods sent via COD (cash on delivery).
  • Check the company’s ID number on www.justice.cz or www.info.mfcr.cz in the economic entities section, where you can verify:
    • whether the company exists at all,
    • whether the company has filed for bankruptcy,
    • whether the company is barred from doing business,
    • who the owner or executive officer is, etc.
  • This information can also be obtained about individual sellers who are not businesses by reading reviews. If you shop at an online marketplace, user reviews are usually published. You can also search for the merchant’s telephone number on the internet.
  • Read reviews not only about sellers, but also about buyers.
  • A good source of information can be found on the website of the Czech Trade Inspection Authority: www.coi.cz In the ’For consumers’ section, there is a ‘Risky e-shops’ subsection, where you can find an online shop by its web address and read the reason why it has been designated as risky.
  • If you sell goods, do not send them before you actually receive the money.
  • In case of a sale, do not pay for any fees: you are the seller and you should be the one receiving money.

 

More information

Security commandments

Skimming

CEO Fraud