Too good to be true? Stay alert for ‘ghost stores’ this EOFY sales season
As the end of the financial year approaches, many shoppers will be eagerly looking out for EOFY sales. However, as ‘ghost’ or ‘phantom’ stores become more common online, the Customer Owned Banking Association (COBA) is urging shoppers to remain vigilant.
According to ACCC’s Scamwatch, more than 12,000 Australians reported losing money to shopping scams in 2025, with total losses reaching $10.8 million.
“These websites are designed to trick even the savviest shopper, and scammers are experts in making fake websites look convincingly like legitimate retailers,” explained Martin Latimer, COBA Head of Financial Crimes and Cyber Resilience.
To help shoppers stay safe this sales season, COBA’s financial crimes team share their expert tips on how to spot, and avoid, such scams.
How do ‘ghost’ or ‘phantom’ stores work?
Typically, ghost stores can only be found online and do not have a physical presence. Consumers may be targeted through social media ads for these stores.
Ghost stores don’t often have registered Australian Business Numbers (ABN) and the websites may not have a privacy policy, terms and conditions, or contact details to contact the business.
Many ghost store websites may have AI-generated images of fake founders or customers, or stolen product images. They may resemble legitimate brands or websites in their name or logo.
These fake shopping websites tend to use tactics like creating a sense of urgency to get customers to make immediate decisions and payments. This could look like fake countdown timers on products, or limited stock warnings (such as ‘only 2 items left!’) to pressure shoppers into making quick decisions.
"Ghost stores often offer expensive goods at dramatically discounted prices up to 90% off. If it's too good to be true, it normally is,” Latimer warned.
Beyond the financial damage of such scams - where these fake stores may provide inferior quality goods or no goods at all once shoppers place an order - they also pose serious privacy and security risks. Ghost stores harvest personal information, login credentials, and payment details through phishing-style tactics that seem like legitimate online shopping experiences.
Latimer explained: “The prices on these websites can be quite tempting, and many shoppers may be keen to jump on what looks like a bargain. But ghost stores are designed to mimic legitimate retailers so convincingly that shoppers don’t realise they’re handing over more than their money, but sensitive personal and financial data as well.”
How to spot a shopping scam
When it comes to shopping scams, it’s important to watch for poor website design and spelling or grammatical errors. Another indicator the store may not be what it seems is a lack of customer feedback or reviews for the seller or product.
“When in doubt, it’s useful to double-check the website URL. Often, ghost stores may be using a ‘.com’ and not ‘.com.au’ website domain,” Latimer said.
If you are shopping on an Australian website, you can use the Australian Domain Authority’s website register to see which company or trademark registered it.
Latimer added: “Additionally, scam websites may encourage you to use untraceable payment methods like cryptocurrency or wire transfers. It’s best to stick to trusted and secure payment methods, which often have built-in buyer protection and fraud prevention features to help safeguard your purchases.”
What to do if you suspect a scam
To help yourself and others stay scam-safe, keep in mind the simple, three-step “Stop. Check. Protect” (Scamwatch) method - take a moment before giving your money or personal information to anyone, make sure the person or organisation you’re dealing with is real, and act quickly if something feels wrong.
If you suspect a scam, report the suspicious sellers or websites to National Anti-Scam Centre (NASC) – Scamwatch and Cyber.gov.au.
If you think you’ve been scammed, it’s important to contact your financial institution or card provider immediately. They can help stop further transactions and explore options to recover funds.
