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Beware of Online Ads with Elaborate Backstories – They May Not Be From a Real Small Business

Experts highlight use of AI, fake hardship stories, and misleading ads in scams; 36% of Americans report lost refunds on counterfeit or undelivered online purchases, Pew Research found.

  • Online, misleading ads and copycat shops are impersonating small merchants, with Deanna Newman, owner of C'est La Vie, finding scam sites using her name and domains registered in China in November.
  • Using advertorial formats and sentimental founder tales, anonymous scammers and vendors append fake hardship narratives like going-out-of-business or memorial sales to gain sympathy.
  • Experts advise doing a domain name search through ICANN or Whois to verify registrations and recommend checking multi-year reviews on Better Business Bureau or Trustpilot to confirm merchant history.
  • Legitimate small-business owners report reputational damage and lost sales, as a Pew Research Center survey found about 36% of consumers failed to receive refunds and shoppers posted complaints on Trustpilot.
  • Faster digital tools and AI are complicating detection, making it increasingly difficult for consumers to tell real merchants from fabricated ones, Seth Ketron said, as fraudsters using AI-generated images refine their tactics.
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17 Articles

Santa Maria TimesSanta Maria Times
Reposted by
Independent EspañolIndependent Español
Center

Melia & Co appears to be a small, family-run business. Their website features a photo of a woman hand-knitting a Christmas design. The caption states that, after decades of creating knitwear that tells “silent stories…”

·Calhoun, United States
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Associated Press NewsAssociated Press News
+10 Reposted by 10 other sources
Lean Left

Beware of online ads with elaborate backstories. They may not be from a real small business

Online ads that appeared before the holidays linked to a website featuring a photo of a woman hand-knitting a Christmas sweater.

·United States
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KARE broke the news in Minneapolis, United States on Thursday, January 15, 2026.
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