It’s easy to get swept up in the excitement of snagging a great deal during end-of-financial-year sales – but scammers are counting on that rush.

Now there’s a particularly sneaky new trick that’s fooling even seasoned bargain-hunters: Ghost stores.

The scam is prevalent on social media – particularly TikTok.

Here’s everything you need to know to spot it so you can shop safely.

What is a ghost store?

Ever scrolled past a video for a charming local boutique you’ve never heard of, offering huge EOFY discounts because it’s “closing down”?

With a heartfelt backstory and tempting deals, it seems like the ideal chance to buy something for less – but there’s a catch.

You’ve probably just stumbled on a “ghost store”.

Ghost stores are sophisticated scams disguised as genuine bricks-and-mortar or online boutiques. They hook shoppers in with emotional claims of struggling against rising rents and tough competition, coupled with heartfelt thanks to their loyal customers.

To convince you they’re genuine, scammers use carefully crafted emotional narratives, AI-generated images of owners looking proudly at their “store”, and familiar Aussie locations such as Byron Bay, Barossa, or Bondi.

In reality, these shops never existed. They’re usually operated by scammers based overseas, with zero local connection or physical presence.

They look the part, but these stores don’t actually exist. Source: The Post SA

Three red flags that scream “ghost store”

1. Sketchy or missing contact details: Legit stores proudly display their location, phone number, and email. Good luck finding an actual address or speaking to a real person if it’s a ghost store.
2. Brand-new websites: Ghost stores usually appear suddenly, just days before big sales events (think the EOFY sales on now), and vanish quickly after grabbing your cash.
3. Copy-and-paste vibes: Identical product descriptions, emotional stories, or suspiciously similar images across different websites are all huge warning signs.

If you’re unlucky enough to buy from one, you’ll probably receive nothing – or at best, cheap and disappointing knockoffs shipped from who knows where.

But wait, there’s more! Other ways scammers might target you

Ghost stores might be the latest headline-grabber, but police across the country warn scammers have plenty more tricks up their sleeves at this time of year.

Scams involving fake retail websites can mimic trusted brands so convincingly that even savvy shoppers can fall victim.

Then there are scammers impersonating legitimate retailers through carefully crafted ads that pop up on our socials, hoping to lure us into clicking through to dodgy sites.

Deceptive pricing, fake promotions, and counterfeit goods are also common pitfalls – promising unbeatable deals but delivering only disappointment or nothing at all.

All these scams have one goal in mind: Getting hold of your cash, personal information, or both.

Scam-proof your EOFY shopping in six steps

But here’s the good news – you don’t have to skip the sales to stay safe. Just follow these quick tips to outsmart the scammers:

1. Check the ABN: Legit Australian businesses have an Australian Business Number. Quickly verify it at ABN Lookup.
2. Independent reviews matter: If the only glowing reviews you find are on the store’s website, think twice. Check independent review sites instead.
3. Look twice at the URL: Fake sites mimic real ones – you should see https in the browser. And carefully check the spelling and domain names are accurate.
4. Get to a site your own way: Want to make doubly sure the website you’re using is the right one? Navigate directly to it via your web browser, not via a link in a text message, email or social media ad.
5. Use secure payments only: It’s safer to pay by credit cards, PayPal, or similar secure options. Steer clear of wire/bank transfers, gift cards, or cryptocurrency payments.
6. Trust your gut: If something feels off, slow down and investigate further.

What scammers are costing us

Australians lost more than $4.8 million to online shopping scams in 2024, with 16,272 cases reported to Scamwatch.

2025 is shaping up to be just as costly – scammers swiped a reported $2.5 million from Australians in just the first four months.

About one in three scams goes unreported, so the real cost is even higher.

And it’s not just Boomers who are tricked. Last year, total losses by shoppers aged under 45 were higher than for those older than that.

It’s Millennials (aged 35-44) who were hit hardest, experiencing the highest losses and reporting the greatest number of incidents of any age group.

Online shopping scams hit those aged 25-44 the hardest. Source: Scamwatch

Help! I’ve been scammed – now what?

Don’t panic, act fast:

• Immediately contact your bank to block further payments and seek a charge back;
• If your personal details are compromised, seek guidance from IDCare;
• If you have suffered harm or a financial loss, make a report at cyber.gov.au or go to your local police station;
• To report an experience where there has been no harm or loss and to access excellent resources, visit the Scamwatch website;
• If you are the victim of a scam, watch out for follow-up attempts as scammers often come for more. Unfortunately, one in three victims of a scam has been scammed more than once.

Remember, every report you make helps authorities track down scammers faster and protect others from falling into the same trap.

Even if you feel embarrassed or the amount lost wasn’t huge, it’s worth the few minutes it takes to make a report online.

This article first appeared in The Post SA. Read the original here