Christmas is one of Australia’s biggest shopping periods, but it’s also when scammers take advantage of busy shoppers, last-minute purchases and irresistible discounts. With Aussies spending an average of nearly $800 on gifts, holidays and celebrations, scam operators know this season is the perfect time to strike. That’s why it’s more important than ever to understand how to avoid ghost stores and Christmas scams before you shop.
In the lead-up to Christmas 2025, the ACCC is warning Australians about the rise of “ghost stores”, fake online retailers that pretend to be local Aussie brands but often ship imitation products—or deliver nothing at all. Worse still, artificial intelligence is helping these scams appear more sophisticated than ever.
To help you shop this festive season safely, here’s how to avoid ghost stores and Christmas scams in Australia—and protect your money, data and peace of mind.
Avoiding Ghost Stores and Christmas Scams
Ghost stores are deceptive online shops that look legitimate but are designed to mislead shoppers. According to an ACCC-highlighted investigation, many ghost stores now:
- Use AI-generated images of “brand founders”
- Fake media articles using well-known publications
- Use domain names registered only months earlier
- Pretend to ship from Australia, when products (if delivered) come from overseas
- Create fake testimonials from “thousands of happy customers”
Platforms like Meta and Shopify have acknowledged the issue and are expanding their anti-scam measures—but ghost stores continue to evolve and deceive shoppers.
The ACCC has already received 700+ complaints about online retailers misrepresenting themselves as local businesses, according to the ABC Australia.
This means consumers must be more alert than ever.
1. Check if the Store Is Legitimate Before You Buy
Verifying a store only takes a minute—but can save you hundreds.
Look for these signs:
- Does it have an ABN? Use the Australian Business Register lookup.
- Is the domain new? Scam shops often register websites within the last 12 months.
- Do images appear elsewhere? Reverse image search can reveal stolen product photos.
- Are the prices too good to be true? Massive “70% OFF” deals are common red flags.
If a brand claims to be Australian but provides no physical address, be sceptical.
2. Look for Fake Reviews and Fabricated Articles
Ghost stores often promote:
- AI-generated founder photos
- Fake customer testimonials
- Screenshots of articles from legitimate publications that don’t exist
The Guardian identified a “makeup brand” claiming to be featured in Australian Women’s Weekly—yet the article was completely fabricated.
If reviews sound robotic, overly generic or repeat the same phrases, you’re likely dealing with a scam.
3. Avoid Paying Through High-Risk Methods
To stay safe:
- Use PayPal, credit card or trusted payment gateways
- Avoid direct bank transfers—these are scammer favourites
- Be cautious of buy now, pay later services for unknown stores
- Never give card details over email or social media
If you suspect fraud, immediately contact your bank’s fraud team.
4. Avoiding Ghost Stores Beyond Social Media Ads
Ghost stores often rely on Instagram, Facebook and TikTok ads.
But remember—ads don’t guarantee trust.
Before purchasing:
- Search the brand name + “scam”
- Look for independent reviews on sites like Trustpilot
- Check if the brand appears in scam alerts from ACCC Scamwatch
A store with zero online footprint outside its own website is a major warning sign.
5. Watch for AI-Generated Images and Product Claims
Many ghost stores are now using AI to make their sites seem “premium” or “local”.
Red flags include:
- Photos of founders that look too perfect or artificial
- Product images with strange textures, blurred backgrounds or extra fingers
- Claims of being “Australia’s No. 1” without proof
- Overly emotional language like “42,000+ Happy Women!” with no evidence
AI makes scams look real—so look closely.
6. Know What to Do If You’ve Been Caught in a Christmas Scam
If you’ve already purchased from a suspicious store:
- Contact your bank immediately to try and reverse the transaction
- Report the scam to ACCC Scamwatch
- Alert the platform where you saw the ad (Meta, Instagram, TikTok)
- Keep screenshots of receipts and conversations
If the business refuses refunds or disappears, report it—your case helps others stay safe.
7. Keep Your Festive Shopping Safe With Trusted Australian Platforms
This Christmas, stick to:
- Reputable Australian online stores
- Well-known retailers
- Verified brand websites
- Platforms that offer strong buyer protection
And whenever possible, shop early—scammers thrive on last-minute panic purchases.
How 2EZi Helps You Shop Smarter and Avoid Online Scams
At 2EZi, we’re committed to helping Australians enjoy a safer, smarter, and more rewarding festive season. Whether you’re looking for cashback, exclusive offers or secure digital savings options, we guide you toward verified deals—not risky guesswork.
Disclaimer
This article provides general information only and does not constitute financial or legal advice. Always verify retailers independently and seek professional assistance if you believe you’ve been affected by a scam.
