A widespread extortion scam is affecting small businesses nationwide, involving a surge of fraudulent negative reviews that pose a risk to their operations. The scheme targets businesses with large numbers of one-star Google reviews and then demands payment for their removal. Danny Khanimov of Danny's Pharmacy in Lincoln Square experienced such an attack, receiving roughly 20 sudden one-star reviews, followed by a message demanding payment to prevent further negative feedback. "I went from 4.9 all the way down to like 4.1 within one day. And he said if I don't take care of the payments, he will post another 15 every single day until he buries me," Khanimov told CBS News.
The problem is not just in New York. A report by Patch found similar cases in other parts of the country, affecting businesses like dog trainers and medical offices. Kay Dean, a former federal investigator and founder of Fake Review Watch, said the scam is widespread and makes things harder for businesses already facing tough economic conditions. The scam has become more organized, often involving people from other countries, which can make legal action harder for victims.
Businesses affected by the scam have had to rely on review platforms like Google to address the problem. In response, Google introduced a "merchant extortion report form" to tackle fake reviews. However, even as reported reviews are removed, new ones can appear. Natalia Piper of Los Angeles saw her business’s rating drop from 5.0 to 3.5 after refusing to pay the scammers. She later paid $250 to have the reviews removed, but additional fake reviews appeared, as she explained to CBS News.
According to Dean’s findings, shared in several Fake Review Watch videos, review fraud has become widespread and affects what consumers see online. "There's a whole underworld of nefarious activity that's underpinning what you see online that people just don’t know of," Dean explained to Patch. Tech companies, including Google, have implemented AI and algorithms to detect and remove fake reviews, but fraudulent reviews continue to appear, showing the challenge remains.
A Yale study cited by Panagram Labs says that short reviews can be hard for even AI tools to detect. People are advised to watch for signs of AI-generated reviews, like very structured language or repeated clichés. As the extortion scam spreads, it affects both the businesses targeted and the trustworthiness of online review systems that consumers rely on.
