Case Study
1. Overview of the Fraud
In January 2024, a tech professional from Bangalore lost ₹1.5 lakh while attempting to purchase a high-end smartphone from an online shopping platform that appeared legitimate. The website mimicked well-known e-commerce portals, offering heavy discounts to lure unsuspecting customers.
2. Modus Operandi (How the Scam Was Executed)
Step 1: Creation of a Fake E-Commerce Website
- Fraudsters set up a replica website mimicking an authentic e-commerce platform.
- The website featured professional design, a valid-looking domain name, and customer support details.
- The scammers ran ads on social media and search engines to promote fake deals.
Step 2: Luring Victims with Heavy Discounts
- The fraudulent store advertised unbelievably low prices on popular products, such as iPhones and gaming laptops.
- They used fake reviews and testimonials to convince potential buyers.
- Customers were asked to make full upfront payments via UPI, bank transfers, or credit cards.
Step 3: Collecting Payments and Blocking Customers
- Once the victim made the payment, they received a fake order confirmation email.
- A fake tracking link was provided to mislead customers.
- Within days, the website was taken down, and all customer communication was cut off.
Step 4: Money Laundering and Disappearing Act
- The fraudsters withdrew the funds from multiple bank accounts to avoid tracing.
- The victims were left without any means to contact the sellers.
3. Investigation Process
Step 1: Filing the Complaint
- The victim approached the Cyber Crime Cell in Bangalore with transaction details.
- A case was registered under the IT Act and IPC Sections 419 & 420 (fraud and cheating).
Step 2: Digital Forensic Analysis
- Cyber experts tracked the website’s IP address and hosting details.
- Payment gateway records helped identify linked bank accounts.
Step 3: Identifying the Fraudsters
- Law enforcement traced multiple fake bank accounts used for transactions.
- The scam was linked to fraud rings operating across states.
- Several middlemen involved in withdrawing the money were arrested.
4. Modus Operandi Explanation: “Fake E-Commerce Store Fraud”
The scammers relied on a combination of digital deception and financial manipulation:
- Fake Website Creation
- Cloning real e-commerce websites with similar branding and domain names.
- Setting up fake customer reviews and ratings for credibility.
- Attractive Discount Bait
- Offering products at unrealistic discounts to lure buyers.
- Running social media ads and promotions to reach a wider audience.
- Upfront Payment Requirement
- Forcing victims to pay via non-refundable methods (UPI, bank transfers).
- Providing fake invoices and tracking details to delay suspicion.
- Disappearance After Payment
- Deleting website, ads, and social media pages after collecting money.
- Withdrawing funds from multiple mule accounts before detection.
5. Preventive Measures Against E-Commerce Fraud
For Consumers:
- Verify Website Authenticity – Cross-check domain names and contact details.
- Check for HTTPS & Reviews – Secure websites use “HTTPS” in the URL.
- Avoid Upfront Payments – Prefer Cash on Delivery (COD) for high-value purchases.
- Use Trusted Marketplaces – Buy from well-known platforms instead of unknown sellers.
- Beware of Unrealistic Discounts – If a deal seems too good to be true, it probably is.
For Authorities:
- Crack Down on Fake Domains – Regularly monitor and ban fraudulent websites.
- Improve Consumer Awareness – Launch awareness campaigns about online frauds.
- Monitor Social Media Ads – Work with tech companies to flag suspicious e-commerce ads.
6. Conclusion
The rise of online shopping has also led to an increase in e-commerce frauds. This case highlights the need for consumer vigilance and stronger enforcement against fraudulent online stores. By verifying sellers, avoiding upfront payments, and reporting suspicious websites, individuals can protect themselves from falling victim to such scams.