Casey Golden
About Author
October 8, 2024
 in 
E-commerce

BRAND.SCAM

WARNING TO ALL Retail Technology & Fashion Technology companies and all luxury brands from startups to global giants. At Luxlock, a retail software platform for luxury retailers, we’ve seen this firsthand. While our official site is luxlock.com, a scam site was set up under luxlock.shop, selling luxury products like Prada shoes and other luxury goods that were and will never be shipped. This fake site wasn’t just about stealing money—it is damaging our brand reputation and general consumer trust. Consumers were contacting us daily, confused and upset after purchasing items they never received, tarnishing our credibility.

The Dangers of Not Owning All Your Brand’s Domain Extensions

In today’s digital landscape, owning your brand’s domain name isn’t just about having a great web address—it’s critical to protecting your brand from fraud, scams, and brand equity dilution. As e-commerce continues to grow, so do the risks of spoof sites, cyber scams, and bad actors using variations of your domain to deceive customers. The cost of owning multiple domains might seem high, but the risks of not doing so are even greater.

The Rising Cost of Domain Protection

Securing your brand’s identity online now extends far beyond simply owning the .com domain. Today, every company must also consider purchasing a growing number of variations like .io, .nyc, .shop, .tech, and the latest extension, .ai. Cybercriminals are becoming increasingly sophisticated, seizing these alternative extensions to create lookalike ecommerce stores that trick unsuspecting consumers. The cost of acquiring and maintaining multiple domains seems unnecessary and easily overwhelming, but the potential damage to your brand’s reputation, customer trust, and the legal challenges that follow far outweighs the initial investment.

For small and medium-sized businesses, however, owning hundreds of domain extensions is often financially and operationally impractical. Startups, in particular, are left vulnerable to malicious actors who can snap up these variations. Unfortunately, this means that even the most well-intentioned companies might see their brand diluted or their customers misled by scammy lookalike sites. Protecting against domain squatters and fraudsters is becoming a costly necessity in a digital world where just one unprotected extension could result in reputational damage and lost business.

We've Been Jacked

At Luxlock, business software platform for luxury retailers, we’ve been experiencing this firsthand. While our official site is luxlock.com, a scam site was set up under luxlock.shop last month selling luxury products like Prada shoes and other designer luxury goods that were and will never be shipped. We own over 25 "luxlock" domain extensions, even some that make no sense but we let one lapse because it was incredibly irrelevant for a software company. Now, we're paying the price for not renewing the $20.00 domain extension ".shop". This fake site is not just about stealing money— it's also capturing customer data and payment information while damaging our brand across the internet. Consumers are contacting us daily inquiring about their orders, confused and upset after purchasing items they never received or having multiple charges continuously rung against their account. We pride ourselves on our customer experience and how we help brands elevate their own; we've taken this as a personal attack to our values. We are sharing as much information as we can with duped consumers that reach out to us and hope this post brings more awareness that we are not associated to "luxlock.shop" but are actively trying to get it shut down. We can't stop consumers from clickbait instagram, facebook and instagram ads and unknowingly checking out thinking they've found. a deal, but we hope this information helps people protect themselves in the future. We can't stop the Youtube video's, bad Google Reviews, or Reddit threads of complaints using our name, but we hope this serves as a warning to other companies that may only own their .com extension that it's not enough and time to own as many as you can afford!

Dear Duped Consumers:
Please be aware that we are not a retailer and do not sell products online, you did not make a purchase on our site luxlock.com. Unfortunately, we’ve been made aware of a fraudulent e-commerce website using the URL https://luxlock.shop/. We have no affiliation to them. There are hundreds of domains, and do not own the “.shop”. If you believe you may have made a purchase or created an account at luxlock.shop, we strongly recommend contacting your bank to report any fraudulent charges and request a replacement card.
Additionally, you may want to go a step further by reporting luxlock.shop to the FTC via the following link:  https://reportfraud.ftc.gov/form/main and/or submit a domain abuse report at GoDaddy: https://supportcenter.godaddy.com/abusereport/phishing
We have reported the site for fraud and Trademark Infringement on GoDaddy, Instagram, Facebook, Shopify, and Law Enforcement here in New York is helping us navigate. If you have any materials that implicate Luxlock.com, I would appreciate if you can forward them to strengthen our case to shut this scammer down.
I know this is not the answer you were hoping for but, we understand your frustration and hope this information helps you resolve this matter swiftly. Feel free to contact us at hello@luxlock.com  should you have any questions or just want to talk through it with a real person.
Sincerely, Casey Golden, Founder CEO, Luxlock

Why You Should Own Domain Extensions That Don’t Even Make Sense

You might wonder why a software company would need to own a domain like .shop when they’re not selling physical products. The reality is, scam sites don’t need to make sense—they just need to look believable. Owning domains like .ai, .shop, or even industry-specific ones can prevent bad actors from using them to confuse your customers.

In our case, Luxlock is a software provider that supports luxury retailers with business tools. We don’t sell any physical products, but the scammers at luxlock.shop set up a fraudulent e-commerce store that appears to a general consumer to be a legitimate luxury retailer. Consumers who purchased items from this fake site not only lost their money but also handed over their credit card information, opening themselves up to further fraudulent charges. If the price for designer goods looks too good to be true, it generally is. We suggest you only buy designer and luxury goods directly from the brand.com or thier own retail stores.

Spoof Sites Damage Brand Equity

Spoof sites are more than just a financial risk—they diminish your brand’s equity. When your domain is misused, it becomes harder to maintain customer trust, which is one of the most critical assets in any business. Customers rely on your brand to be a trusted point of contact, and when scammers use your name, they erode that trust. Consumers who have been scammed by a fake site may not realize it wasn’t your business that wronged them, damaging your integrity and customer relationships. As a result of this spoof site, we’ve have customers email and call Luxlock daily, asking about their orders for Prada shoes or other luxury products that are not associated with our business. This confusion is a prime example of how not owning all potential domain extensions can directly hurt a business.

Protecting Your Customers and Your Brand

If you suspect that you’ve been a victim of a scam or spoof site, here’s what you can do:

How to Verify an Online Business

Before making any purchase online, always take the time to verify the legitimacy of the site. Some quick tips:

  • Look for Secure URLs: Ensure the website has "https://" at the beginning of the URL, indicating it’s a secure site.
  • Find the Companies Real Name: Read through the Terms of Service & Privacy pages found in the footer to find anything phishy
  • Search for their Email Addresses: Read through the shipping policy, if there is any mention of China or odd policies DO NOT TRANSACT
  • Check Reviews and Ratings: Look for customer reviews or business ratings on trusted platforms like Google or Yelp.
  • Find a Physical Address: Google map the address, if it is a odd or a home address DO NOT TRANSACT
  • Research Contact Info: If you can’t find a reliable way to contact the company or there’s no customer service info, be wary.
  • Too Good to Be True?: If the price seems suspiciously low or the deal seems too perfect, it likely is.

Holiday is Approaching

It’s important to highlight the growing sophistication of these fake e-commerce stores and how they exploit consumer trust; especially as we approach the holiday season. By addressing the risk of fake e-commerce stores, companies can take proactive steps to minimize potential damage and secure the trust that consumers place in them. It's time to report and flag scams when we see them.

  1. Sophisticated Scams and Phishing: Fraudulent e-commerce sites don’t just mimic legitimate brands; they often go a step further by setting up convincing checkout processes, offering enticing discounts, and even sending fake order confirmation emails. These scams trick consumers into providing credit card details, personal information, and account credentials. Once they have this sensitive information, cybercriminals can steal funds, sell data on the dark web, or execute further scams under the guise of a trusted brand.
  2. Damaged Customer Relationships: These scams not only steal money and data from customers but also destroy their trust in the legitimate brand. If a consumer believes they’ve made a purchase from a trusted company, only to receive nothing or have their data stolen, they often hold the real brand responsible. This can lead to a tarnished reputation and long-term loss of customer loyalty, even if the business had no involvement in the fraudulent activity.
  3. Brand Integrity at Risk: For small businesses and startups, a single phishing or spoof site can severely damage brand integrity, especially when customers assume there’s a connection between the real brand and the fraudulent site. The impact can be long-lasting, requiring businesses to invest in PR, crisis management, and additional customer support to regain trust.
  4. Mitigating Risks: To protect against these threats, brands should not only secure multiple domain extensions but also actively monitor for fraudulent websites. Implementing SSL certificates, educating customers on how to verify authentic transactions, and partnering with cybersecurity firms to scan for lookalike domains can further safeguard the brand’s digital presence.

Conclusion: Act Before It’s Too Late

Owning all your brand’s domain extensions is more than just a protective measure—it’s an essential IT strategy for securing your business’s reputation and protecting your customers. While it may seem unnecessary or costly to buy a .shop or .ai extension, the risks of not doing so can lead to far greater financial and reputational losses. At Luxlock, we’ve seen firsthand the consequences of not owning all domain variations, and we hope to help other businesses avoid the same pitfalls. Don't wait until a scam site has already impacted your brand—act now to safeguard your business. We're experiencing enough pain for us all!

More Posts

You Might Also Like

Read More
Technology Trends

Unlocking Revenue With The EU's New Digital Product Passport

Unlock Revenue With The EU's New Digital Product Passport. What got us here, will not save us. The Imperative of Digital Transformation in Fashion – the EU’s (DDP) will unlock more transparency to drive circularity and sustainability initiatives but with unified commerce platforms there could be new revenues seen by extending the customer journey and capturing re-commerce in-house. In today's fashion industry, brands are facing unprecedented challenges. The traditional business model, which relies heavily on selling more products to increase revenue, is under pressure. Global concerns around climate change, resource depletion, and waste are forcing the fashion sector to rethink its approach to production, distribution, and consumption.
Oct 17, 2024
Casey Golden
Read More
Podcast

The Retail Razor Show

We are thrilled to unveil the launch of the Retail Razor Show, a groundbreaking podcast series hosted by industry veterans Ricardo Belmar and Casey Golden. Join us as we embark on an exhilarating journey into the world of retail, where we'll explore the dynamic interplay between artificial intelligence, human interaction, and cutting-edge retail media. Together, Ricardo and I will delve into the latest trends, innovations, and strategies reshaping the retail landscape, offering invaluable insights and actionable advice to our listeners. The Retail Razor Show is your ultimate guide to navigating the ever-evolving retail industry.
May 10, 2024
Casey Golden
Read More
Brand Spotlight

Bruce Wayne x Automobili Pininfarina

This extraordinary partnership not only epitomizes innovation in automotive design but also underscores the transformative power of concierge-level shopping services for the next-gen of luxury retailing. Forget the Batmobile. Pininfarina Just Unveiled 4 Bruce Wayne-Inspired Electric Hypercars. The Italian coachbuilder has released "Gotham" and "Dark Knight" variants of the B95 and the Battista. Bruce Wayne may have driven Lamborghinis in Christopher Nolan’s Batman trilogy, but that hasn’t stopped Pininfarina from paying homage to the legendary DC character.
May 1, 2024
Casey Golden