Cybercriminals are increasingly targeting retail affiliate programs with sophisticated cryptocurrency scams. Retailers and customers must stay alert against domain fraud, brand impersonation, and online Ponzi schemes to prevent losses.
Cybercriminals and nation-state hackers are increasingly targeting retail affiliate programs to conduct cryptocurrency scams, according to the latest research by cybersecurity firm DomainTools.
With its vast economic footprint and consumer brand loyalty, the retail sector has become a prime target for these malicious actors, exploiting online platforms and brand reputations to deceive consumers and reap financial rewards.
Leveraging Brand Loyalty for Fraud
The global retail industry—valued at over $30 trillion annually and with the top 50 retailers contributing more than $1.13 trillion in revenue in 2023—has always been a lucrative target for scammers and fraudsters. However, the transition toward e-commerce has opened up new opportunities for cybercriminals to exploit.
The DomainTools detailed technical report, shared with Hackread.com ahead of publishing, dives deep into how threat actors use domain fraud, brand impersonation, and multi-level Ponzi schemes to deceive consumers and steal cryptocurrency.
Cybercriminals are not just after financial gains; they are also damaging brand reputations. By closely imitating well-known consumer brands, these actors aim to exploit the trust and loyalty consumers have for these companies. This multi-layered fraud not only affects individual consumers but also threatens the credibility of the brands themselves.
Online Storefronts: A Hotspot for Fraud
One noteworthy trend underlined in the report is the rise of e-commerce domain fraud. As physical stores closed during the global pandemic, the retail sector’s move to online platforms created another ground for cybercriminals.
One group of threat actors, for instance, set up hundreds of fraudulent websites to impersonate well-known global retailers. These sites often promised huge discounts through fake “store closing” sales, luring unsuspecting consumers into the trap.
DomainTools traced thousands of such fraudulent domains, some of which impersonated luxury brands like Rolex and Cartier. The scammers created these fake websites using templates, automated processes, and even legitimate e-commerce platforms to generate convincing landing pages. The scale of the operation is staggering, with over 2,300 fraudulent domains tied to just one SSL certificate alone.
Ponzi Schemes Disguised as Affiliate Programs
The report also uncovers a disturbing trend: the use of brand impersonation to conduct financial fraud. Cybercriminals are preying on individuals looking for side-income opportunities by promising commissions for completing simple tasks, such as boosting online sales for well-known brands like Amazon and Target. Victims are led to believe they are joining legitimate affiliate programs when, in reality, they are being lured into Ponzi schemes.
These scams often require victims to invest in cryptocurrency, such as USDT (Tether), with the promise of high returns. The fraudsters then push victims to recruit others, creating a multi-level marketing front.
In one case, a fraudulent website using the domain “amazon-9000com” mimicked Amazon’s platform to convince users to invest in these fake opportunities. This particular scheme was linked to over 200 other fraudulent domains impersonating major brands, including Lazada, Walmart, and TikTok.
Copycat Scams Spread Quickly
The third major finding in the report is the proliferation of copycat schemes. Once a scam proves successful, it is quickly replicated by other cyber criminals. For example, a domain called “targetpk8top” appeared in late 2023, impersonating Target in much the same way as earlier scams targeted Amazon. The same templates, naming conventions, and SSL certificates were used, showing how quickly these tactics spread across the cybercriminal ecosystem.
These copycat scams often follow a familiar playbook: they use fake investment schemes, promise high cryptocurrency returns, and rely on social media platforms to find new victims. By the time consumers realize they’ve been duped, the scammers have often disappeared, leaving little chance of recovering lost funds.
What’s Next for Retailers?
The report urges the retail sector to remain vigilant. These scams have been ongoing since at least 2020, and the perpetrators show no signs of slowing down. Retailers must monitor their online presence closely, especially regarding domain registrations and brand impersonations.
Additionally, collaboration is key. Organizations like the Retail and Hospitality Information Sharing and Analysis Center (RH-ISAC) and the National Cyber-Forensics and Training Alliance (NCFTA) are instrumental in sharing threat intelligence across the industry, helping retailers stay one step ahead of evolving cyber threats.
Although such scams are not new, their increased sophistication is only making it worse for unsuspecting customers and retailers. Therefore, both parties should recognize the threat posed by domain fraud and brand impersonation. Businesses should train their employees, and customers should learn how to identify scams or malicious websites.
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