The ‘closing down’ sale scam: Why some bargains are never what they seem
- Replies 2
A leather jacket for half price. A boutique closing down after decades of trading.
It sounds like the bargain of a lifetime—but is it real?
Some shoppers are discovering that what appears to be a dream deal can quickly turn into a nightmare.
In some cases, buyers do receive products—but rarely as advertised. Often items come from cheap online suppliers or drop-shipping sites that send generic goods directly to consumers.
‘While you might get something delivered, it’s not going to be reflective of what’s there on the ad,’ Mallavibarrena explains. ‘It’s going to be something like a polyester T-shirt with the knitting pattern printed on it, instead of an actual knitted sweater.’
Serpil Hall, a consultant on fraud and economic crime, says hundreds of such accounts can be created at once, using emotive language and urgency to draw people in.
‘In many cases no goods are ever shipped – the site disappears after collecting payments. In some other cases, counterfeit, or poor-quality goods arrive (sweatshirts, watches, trainers), often traced to very low-cost bulk suppliers,’ she adds. Accounts are often abandoned or renamed once negative reviews start to appear.
The scam usually follows a familiar formula. Posts claim a company is closing and has limited stock, using scarcity to push people into hasty purchases. Bigger discounts are sometimes offered for multiple items, such as 20 per cent off one item and 40 per cent off two.
Accounts can look convincing at first glance, displaying addresses and city names, but this information is often false. Images of founders may be AI-generated, and the profiles are frequently repeated with minor alterations.
Consumer group Which? highlighted one case where a boutique called Thompson Oxford claimed it had a ‘heavy heart and tears in my eyes’ and could not compete with larger stores, so it was selling off its stock.
Hall says the scams are essentially ‘industrialised social engineering – leveraging cheap ads, fake urgency and rapid rebranding to take money from thousands of consumers before disappearing.’
If a deal feels too good to be true, it probably is. Fraudsters rely on shoppers reacting impulsively to bargains.
Check comments on the account to see if other buyers received items and whether the quality was as promised. Reverse image searches can reveal where photos have appeared elsewhere, and Meta’s ad library can show if text is duplicated across multiple ads.
You can report misleading content or suspected scams to Meta, whose rules state that ads ‘must not promote products, services, schemes or offers using identified deceptive or misleading practices, including those meant to scam people out of money or personal information’.
If you want to strengthen your online safety even further, there’s a practical guide that breaks down the basics of cybersecurity.
It covers how to recognise suspicious ads, secure your accounts, and avoid common online traps.
Following this module can help you shop and browse with greater confidence.
Read more: Cybersecurity for Aussies Over 60: Module 1
Have you ever been tempted by an irresistible online bargain that turned out to be a scam?
It sounds like the bargain of a lifetime—but is it real?
Some shoppers are discovering that what appears to be a dream deal can quickly turn into a nightmare.
Cyber researcher uncovers thousands of fake sale ads. Image source: Pexels/Tima Miroshnichenko
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
Disclaimer: This is a stock image used for illustrative purposes only and does not depict the actual person, item, or event described.
In some cases, buyers do receive products—but rarely as advertised. Often items come from cheap online suppliers or drop-shipping sites that send generic goods directly to consumers.
‘While you might get something delivered, it’s not going to be reflective of what’s there on the ad,’ Mallavibarrena explains. ‘It’s going to be something like a polyester T-shirt with the knitting pattern printed on it, instead of an actual knitted sweater.’
Serpil Hall, a consultant on fraud and economic crime, says hundreds of such accounts can be created at once, using emotive language and urgency to draw people in.
‘In many cases no goods are ever shipped – the site disappears after collecting payments. In some other cases, counterfeit, or poor-quality goods arrive (sweatshirts, watches, trainers), often traced to very low-cost bulk suppliers,’ she adds. Accounts are often abandoned or renamed once negative reviews start to appear.
The scam usually follows a familiar formula. Posts claim a company is closing and has limited stock, using scarcity to push people into hasty purchases. Bigger discounts are sometimes offered for multiple items, such as 20 per cent off one item and 40 per cent off two.
Accounts can look convincing at first glance, displaying addresses and city names, but this information is often false. Images of founders may be AI-generated, and the profiles are frequently repeated with minor alterations.
Consumer group Which? highlighted one case where a boutique called Thompson Oxford claimed it had a ‘heavy heart and tears in my eyes’ and could not compete with larger stores, so it was selling off its stock.
Hall says the scams are essentially ‘industrialised social engineering – leveraging cheap ads, fake urgency and rapid rebranding to take money from thousands of consumers before disappearing.’
If a deal feels too good to be true, it probably is. Fraudsters rely on shoppers reacting impulsively to bargains.
Check comments on the account to see if other buyers received items and whether the quality was as promised. Reverse image searches can reveal where photos have appeared elsewhere, and Meta’s ad library can show if text is duplicated across multiple ads.
You can report misleading content or suspected scams to Meta, whose rules state that ads ‘must not promote products, services, schemes or offers using identified deceptive or misleading practices, including those meant to scam people out of money or personal information’.
If you want to strengthen your online safety even further, there’s a practical guide that breaks down the basics of cybersecurity.
It covers how to recognise suspicious ads, secure your accounts, and avoid common online traps.
Following this module can help you shop and browse with greater confidence.
Read more: Cybersecurity for Aussies Over 60: Module 1
Have you ever been tempted by an irresistible online bargain that turned out to be a scam?
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