Google on June 16 filed a lawsuit against a bad actor who created hundreds of fraudulent business profiles, generated thousands of fake reviews for those profiles, and ultimately sold those profiles or consumer information obtained through those profiles to real businesses.
Why it matters: Fake business listings and reviews mislead consumers and cause them monetary loss and other harm. According to the US Federal Trade Commission (FTC), consumers waste an average of $125 each year on inaccurate reviews, Google cited.
“Customers trust Google to deliver authoritative and trustworthy results. But that trust is lost if they spend money based on fake reviews.” – Google
The company’s lawsuit says it will go after scammers who create fake businesses and reviews not just in the US, but around the world.
“This lawsuit is to create awareness that we will not stand idly by while bad actors misuse our products. […] We’re sharing our knowledge with them (FTC) to address fake reviews and other misleading endorsements globally.” – Google
Google’s lawsuit targets a California-based individual named Ethan Qiqi Hu, his companies GMBEye and Rafadigital, and 20 unnamed individuals whose identities are unknown to the company. The company alleged that the defendants violated various Google Terms of Service.
The article continues below. You may also read: Summary: India’s new guidelines for online reviews on e-commerce platforms
What was the modus operandi?
1. Creating fake business profiles on Google: Since mid-2021, the defendants have created more than 350 fake business profiles accompanied by fake websites. The contact numbers for these companies are Voice over Internet Protocol (VoIP) phone numbers whose area codes correspond to the supposed locations of the bogus companies.
To get through Google’s verification process, the defendants opt for the video call option and come to those calls “armed with an elaborate set of props, which they use to pass off their fake listings as real small businesses.” For example, when he tried to verify a fake business called Western Los Angeles Garage Door Repair, the defendant displayed a tool bank area to trick Google into thinking it was his business. The same area of the tool bank was also used to verify other fake companies. In another example, the defendants submitted to Google “what appears to be the same set of essential oils below to verify multiple aromatherapy and reiki therapy listings.”
Once these fake businesses are verified, the defendants either sell the listing or change the fake business information to make the business profile more desirable to potential buyers. For example, one defendant created a fake profile for “Santa Barbara Maid Service & House Cleaners” and then changed the name to “Gold Garage Door Repair.”
Fake listings are sold to other businesses through GMBEye (more on that below) or other channels, including Facebook groups.
2. Get fake reviews for fake companies:
To bolster the value of the fake business listing, the defendants receive fake reviews on the fake business listings. The 350 fraudulent business profiles have at least 14,000 fake reviews. “Almost every review awarded a potential five stars. And most of those reviews, including the at least 14,000 comments mentioned above, were posted by two actors located in Bangladesh and Vietnam, an ocean away from the many alleged North- American companies for which these accounts posted reviews,” Google revealed.
In addition to hiring these unknown individuals to obtain false reviews on lists created by the defendants, the defendants also sold the services of posting false reviews to their customers for a fee.
“The people posting these reviews have never sponsored the companies in question and their reviews are not based on any actual experience,” Google said.
It has become completely impossible to find good places on Google Maps in 2023 as every place has 4.8 stars of fake reviews
If every place is great, no place is
— @levelsio (@levelsio) June 21, 2023
3. Sell leads obtained from fake profiles to real businesses:
Eventually, fake business listings are sold or transferred to others, but before that, while they remain live, they attract unsuspecting users looking for similar businesses. These users contact the fake business through the listed VoIP phone numbers or submit online inquiries with their contact information. The defendants sell this information as leads to real-world companies that offer services similar to the bogus businesses.
“Consumers think they are being contacted by a specific business that they have chosen based on their business profile, reviews, website, proximity to their location or other characteristics. But they end up being sent to a completely different business , one they did not choose and did not consent to be contacted by. This behavior misleads consumers and is likely to erode their trust in Google Business Profiles as a reliable and safe way to find and contact local businesses.” , Google explained.
As an example: “Imagine a Los Angeles resident comes home to find his garage door won’t open. He searches for a garage repair service near him on Google. He finds the fake listing discussed above,” Garage Door Repair in West Los Angeles.” Because of the defendants’ scheme, the listing is verified so it contains photographs, a website link, and information about hours and area of business service.Seeing strong five-star reviews from others for West Los Angeles garage door repair, and increasingly frustrated with sitting in her driveway, the user calls the number of phone in the business profile, the Los Angeles area code “213” provides more assurance that the business is nearby. But when she makes the call, she is not connected to the business she reasonably believes she thought she was calling (which, of course, does not exist), but with a different repair service that has agreed to pay the defendants a bribe to redirect consumers their way.”
This scheme is no secret because the defendants offer them as “lead generation” services through the Rafadigital website and even in Facebook groups, Google said.
How are business profiles created and verified on Google Maps and Search?
Google displays business profiles for various types of businesses in Google Search and Maps. These profiles contain information about the company’s location, services provided, contact, ratings, reviews, etc. New business profiles can be created by businesses themselves, created automatically by Google, or suggested by members of the public.
“To create a new business profile or claim an existing business profile, an individual must verify basic details about the business and that they are the business owner or another authorized representative. After this process of verification, the person becomes the ‘owner’ of the profile and can edit that business profile, grant access to other users to do so, and use other tools and features,” Google explained. Google verifies owners through a variety of means, including sending a postcard with a verification code to the business address, using a phone call, video call, or other means.
What are the bogus services and claims that the defendants are selling through their websites?
As mentioned above, fake tokens are sold to other companies through GMBEye.
Verification without postal mail: GMBEye’s website advertises “Premium Business Listing Verification” services, claiming that verification can be done without going through the postcard method (which is otherwise Google’s default verification standard) for all categories of companies and services. It offers Basic, Pro and Ultimate packages “based on the number of business profiles a buyer intends to verify and, presumably, the degree of effort GMBEye is involved in evading Google’s verification requirements.”
Make sure your business is at the top of search results: The website is “replete with express and implied assurances that the defendants are able to bypass the verification procedures that Google requires of most merchants, as well as to ensure that a particular business listing is “in the top” of Google Search results – a misleading and false statement. , because no company or entity can guarantee this location through Google’s search algorithm.”
A false impression of preferred access to Google: The website gives the false impression that “GMBEye has preferential access to Google or has a unique position with Google that allows it to secure ‘Premium Business Listing Verification’ which is not available to those who verify your businesses through Google’s free processes.The implied message is that because of this access or relationship, GMBEye can fast-track your business’s verification on Google, based on the call to action at the top of your home page.” The website also has a narrative text explaining how GMBEye relies on a proprietary process through which it can “immediately establish trust with Google,” while other companies offering similar services try to “game the system.” But in reality, “Defendants do not, in fact, have any preferred relationship or access to Google to facilitate these services,” Google clarified.
Services for Spam Names: GMBEye advertises that it can verify companies with “spam names,” bypassing Google’s quality checks and other measures. It also claims that other services cannot do the same because Google will suspend the listing.
Any location in any category: GMBEye advertises that it is “the only provider that[t] can provide a GMB listing for any US/CA location in any category.
Search Engine Optimization: Rafadigital, the other website operated by the defendants, offers services related to search engine optimization and lead generation. Advertise that elevates your business to the top of search results. “Rafadigital’s advertising makes dramatic and unspeakable promises, such as that the defendants will ensure that a website ‘shows #1 on Google’ and that”[w]Rank your business on Google My Business (GMB) as #1 in map searches so you can outrank your local competitors,” Google explained.
Lead generation: Rafadigital’s website also advertises lead generation services, stating that it can “[g]and high-converting leads straight to your phone… for all industries. These leads are presumably generated from fake business listings, which customers unsuspectingly contact (as noted above).
How is India trying to tackle fake reviews?
In December 2022, the Indian government, along with the Bureau of Indian Standards (BIS), launched new guidelines for online consumer reviews. These guidelines, while currently voluntary, require online platforms that include consumer reviews to adopt various measures for the collection, moderation and publication of reviews.
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