Top 10 Online Marketplace Scams and How BrandShield Protects Your Brand

Online marketplaces have transformed global commerce. With just a few clicks, anyone can list a product, reach millions of shoppers, or run a cross-border business. Platforms like Amazon, eBay, Alibaba, and Facebook Marketplace have empowered businesses of all sizes — but this accessibility has also opened the door to widespread fraud.

Scammers today use marketplaces as a launchpad for counterfeit products, fake stores, phishing attacks, and impersonation schemes. According to the Global Anti-Scam Alliance, online scams cost consumers and businesses over one trillion dollars between 2023 and 2024, with marketplace fraud representing a major share of these losses.

For brands, the risks are immediate and severe:

1. Lost revenue
2. Erosion of trust
3. Customer dissatisfaction
4. Long-term reputation damage

In this article, we reveal the ten most common marketplace scams — and show how BrandShield, a global leader in digital brand protection and a technology vendor officially distributed by Softprom, helps companies proactively eliminate threats before they escalate.

The Hidden Risks Behind Online Marketplaces

Online marketplaces rely on trust. Shoppers expect authenticity. Brands expect platforms to identify and remove fraud. But behind this simplicity lies a far more complex reality. Scammers exploit marketplace openness to:

• Create hundreds of fake listings instantly
• Impersonate trusted brands
• Clone legitimate product pages
• Use AI to fabricate reviews, videos, and product images
• Operate anonymously under disposable accounts

Manual monitoring is nearly impossible — especially at global scale.

This is where BrandShield makes a critical difference.

BrandShield continuously monitors online marketplaces worldwide, identifying suspicious listings, fake sellers, and organized scam networks using advanced AI. Once threats are detected, BrandShield’s enforcement experts — including IP attorneys — verify violations and submit legally compliant takedown requests across all relevant platforms.

The 10 Most Common Online Marketplace Scams

Below are the most widespread online marketplace scams, along with how BrandShield helps brands respond effectively.

1. Counterfeit Product Listings

Scammers copy brand names, logos, and imagery to sell counterfeit versions of popular products. These fakes damage customer trust and can even pose safety risks. How BrandShield helps:

• AI-powered image and keyword detection
• Global monitoring across all major marketplaces
• Human verification by BrandShield IP experts
• Legally backed takedown submissions

2. Fake Brand Stores & Impersonation Pages

Fraudsters create storefronts that mimic legitimate brands, using stolen logos and designs to mislead customers. BrandShield’s solution:

• Automated detection of impersonating storefronts
• Trademark misuse monitoring
• Human-reviewed evidence
• Coordinated enforcement to close fake stores quickly

3. Phishing & Off-Platform Payment Scams

Sellers redirect buyers to external sites that imitate marketplace or brand pages, stealing credentials or payments. BrandShield’s solution:

• Detection of lookalike domains and phishing URLs
• Identification of fake social profiles and landing pages
• Legal enforcement via ICANN-registered channels

4. Listing Cloning (Bait & Switch)

Scammers duplicate genuine listings, then switch seller details or replace products with counterfeits. BrandShield’s solution:

• AI pattern recognition and listing duplication detection
• Legal verification
• Rapid takedown actions

5. Deepfake Product Images & AI-Generated Reviews

AI-generated videos, photos, and reviews make fraudulent listings more convincing. BrandShield’s solution:

• Advanced visual recognition tools
• Manual legal review of manipulated content
• Enforcement compliant with global IP standards

6. Fake Shipping, Deposit, or Escrow Services

Victims are told payments will be “held safely” by a fake courier, escrow service, or payment provider.

BrandShield’s solution: While BrandShield does not verify logistics services, it does detect unauthorized use of brand identity in fake shipping or payment schemes. Verified impersonations are removed via official enforcement channels.

7. Overpayment & Refund Scams

Fraudsters send an overpayment and request a refund — then reverse the original payment. BrandShield’s solution:

• Suspicious buyer activity monitoring
• Pattern analysis
• Verified enforcement aligned with marketplace policies

8. Unauthorized Resellers & Grey Market Dealers

Real products are sold through unauthorized channels, often violating distribution agreements and undercutting prices. BrandShield’s solution:

• Flagging of sellers violating brand policies
• Evidence-based enforcement
• Action led by experienced IP attorneys

9. Fake Reviews & Manipulated Ratings

Scammers generate thousands of fake reviews to boost visibility or sabotage competitors. BrandShield’s solution:

• Detection of coordinated fake review networks
• Human-verified reporting to marketplace authorities

10. Marketplace Brand Impersonation Networks

Scammers often operate in large networks across multiple regions and platforms. BrandShield’s solution:

• AI.ClusterX™ identifies interconnected scam operations
• Human-led investigation
• Full network dismantling through targeted enforcement

The Real Cost of Marketplace Fraud

Scams cause far more than monetary loss. They create long-term damage to brand equity, customer loyalty, and market positioning. OECD research estimates counterfeit goods account for over 3% of global trade, with some industries seeing much higher exposure.

Softprom customers using BrandShield report significant reductions in marketplace fraud thanks to the combination of AI automation and human-led, legally sound enforcement.

How BrandShield Protects Your Brand

BrandShield provides end-to-end digital brand protection — strengthened by legal expertise, global coverage, and continuous monitoring.

BrandShield’s human-led process includes:

1. Detection

AI scans marketplaces, domains, and social platforms for brand misuse.

2. Clustering

AI.ClusterX™ reveals connected networks and fraud patterns.

3. Prioritization

Critical threats are identified and forwarded for human verification.

4. Human-Led Enforcement

BrandShield’s team of IP attorneys and enforcement specialists submits legally accurate takedowns through verified channels.

5. Reporting

Transparent dashboards summarize threats, actions, and protection outcomes.

With BrandShield, brands gain both the speed of AI and the accuracy of expert-led legal action.

Conclusion:

Marketplace Scams Demand Smarter Protection Online scams are evolving — and so must brand protection strategies. BrandShield combines cutting-edge detection technology with experienced legal professionals to help businesses respond accurately, responsibly, and at scale. Whether your brand is facing counterfeit products, fake storefronts, or large-scale impersonation networks,

BrandShield and Softprom deliver a proven solution for proactive digital brand protection.

Request a demo to see how BrandShield can safeguard your brand across online marketplaces.