Seoul City "Famous Electronics Mall Impersonation Damage, 75 Million Won in Three Months"

Similar Site Creation, Caution Required

[Asia Economy Reporter Kiho Sung] The Seoul Electronic Commerce Center announced on the 6th that from November last year to January this year, a total of 77 cases (40 online malls) of consumer damage caused by sites impersonating famous brands were reported, with the damage amount reaching approximately 75 million KRW.

The scam method involves sellers listing products at the lowest price on large online intermediary malls. When consumers make a payment, the order is unilaterally canceled, and the consumers are contacted with reasons such as stock shortages or additional discounts, inducing them to repurchase the items from the impersonating sites.

Additionally, under the pretext of additional discounts for online intermediary mall or card payment fees, consumers were guided to make cash payments via bank transfer instead of card payments.

In particular, the reported sites placed logos of famous online shopping malls and certified dealer marks of major home appliance manufacturers throughout their main pages, and used high-resolution product photos, creating the impression that they were official dealers, which increased the damage. Some even created website addresses similar to company names or large shopping malls, causing confusion.

The fraudulent sellers exploited the fact that large portal online intermediary malls allow product sales by individual sellers after identity verification, targeting consumers who trust the scale and reputation of these intermediary malls.

Seoul City urged consumers to carefully check product reviews before purchasing to confirm whether products have been normally delivered, and warned that notices such as ‘inquire about product stock before purchase’ or cases where sellers unilaterally cancel orders and guide consumers to purchase from other sites may indicate scams.

Furthermore, Seoul City emphasized the need for online intermediary malls to implement measures such as restricting individual (non-business) sellers from selling high-priced products or establishing additional verification procedures to reduce consumer damage.

Consumers who have suffered similar damage or any damage related to online shopping can apply for consultation at the Seoul Electronic Commerce Center to receive detailed guidance.

Jae-yong Park, Seoul City’s Labor, Fairness, and Coexistence Policy Officer, stated, “Recently increasing scam sites use designs similar to official websites, including famous manufacturers’ BIs, so consumers should not purchase products solely trusting certification marks. Since home appliances are mostly high-priced and the damage amount is large, consumers should always check reviews before purchasing and use credit card installment payments instead of cash payments, which makes it easier to receive compensation if problems occur.”