A person with a hand full of shopping bags walking by The Outlet Shoppes of the Bluegrass in Simpsonville, Kentucky.
A string of glowing five-star online reviews often seal the deal for us when it comes to making a purchase or picking a restaurant — but can you really trust them?
According to a 2023 survey, more than 99% of the shoppers perused online reviews from time to time, with about 87% regularly trawling the net for consumers' views on products and services.
Up to 40% of these online testimonials are unreliable, according to a public interest research group, and these fake reviews are estimated to influence $152-billion worth of online spending annually.
"Around 70% of my purchase decisions are made after scrutinizing these testimonials. I use them for attractions when traveling overseas. Accommodations for sure. Services and food," says 28-year-old Goh.
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She relies on the reviews to assess costs, ambience of restaurants, and convenience of reaching a destination.
When asked how frequently she gets disappointed by online testimonials, she's quick to reply: "So many times!"
"Consumers are putting blind trust in review platforms that their algorithms are giving them," online review fraud investigator Kay Dean says.
Money Report
Dean, who used to be a former federal criminal investigator and has earned her the title "fake review hunter," has been taking online fraud cases pro bono for the past six years.
She has distilled the essence of her learnings based on hundreds of fake-review cases in the following tips. Read on to avoid regrets this festive season:
1. Too many five-star reviews?
If a business has an abnormal streak of five-star reviews over a very short period of time, sometimes with little to no text at all, it's a clear red flag, Dean warns.
"Or if you see a negative review followed by a string of five-star reviews, that's suspicious, because sometimes business will try to bury legitimate negative reviews."
2. Check review writers' history
Be skeptical of profiles of people that have left just one review. If it appears that an account was created just for that one testimonial, it is likely to be fake.
Other warning signs could come in the form of locked Google profiles, which Dean surmises could be one way fake writers hide their review histories from consumers. And if a business' testimonial feed is littered with reviewers whose profiles are locked, it warrants a cautious approach from consumers.
3. Who is the reviewer?
Be careful, if a reviewer uses the name of a celebrity or a stock image, or some random photo as their display picture.
Additionally, if the reviewer has left a slew of testimonials from different parts of the world and in quick succession within a short span of time about a particular business, it's worth being a bit more cautious.
Especially so if a business is found to have many reviewers with similar "global" footprint that have appraised the very same stores — these accounts may be fake and the reviews could have been bought.
"They may be a world traveler, maybe. However, if multiple reviewers' profiles [left on a business or service] have those similar geographic distribution of their reviews, it's suspicious," Dean says.
4. Pictures, posts and lies
While reviews with all stars and no text are suspicious, be just as mindful of reviews that are detailed.
"People often think that detailed reviews or those with photos must be real. Not true," Dean says, sharing an anecdote about how she's seen photos from real estate listings being passed off as work purportedly done by home remodelers in several reviews.
5. Talk to real people
Ultimately, Dean's most watertight tip is to talk to real people — getting the recommendations from friends and relatives instead of relying on virtual reviews.
"Get back to the tried and true method of getting your information by word of mouth."
It's a virtual world
Online reviews, both real and fake, are not going away any time soon.
E-commerce is set to represent 41% of global retail sales by 2027, up from 18% in 2017, a recent forecast by Boston Consulting Group showed. This means online reviews will continue to be prevalent and play a critical role in purchasing decisions.
And fake ones are going to ensnare the gullible, often promoting low-quality and sometimes even dangerous products.
Dean adds that because shoppers rely so heavily on reviews, there is "great pressure" on businesses to maintain good ratings to gain a competitive edge.
A one-star increase in a Yelp rating for example could bring about a 5% to 9% increase in revenue, according to a study.
"Reviews make or break a business. And incentives are high for people to cheat," Dean sums up.
