How to Spot a Fake Online Business in Nigeria

Online scams are on the rise in Nigeria, and many unsuspecting buyers fall victim to fake businesses. Fraudsters create convincing fake online business, websites and social media pages to steal money from people. In this guide, we’ll show you how to identify fake online businesses and avoid being scammed.

1. No Verified Contact Information

Legitimate businesses always provide verifiable contact details, such as:

• A phone number that works
• A physical address (if applicable)
• An email linked to the official website

Red flags:

• No contact information or only a WhatsApp number
• Phone number that is switched off or doesn’t exist
• No official email, only using free emails like Gmail or Yahoo

2. Too-Good-To-Be-True Prices

Scammers lure victims by offering extremely low prices for expensive items. If a business is selling a laptop worth 500,000 naira for 150,000 naira, it’s likely a scam.

Always compare prices with known sellers before making a purchase.

Red flags:

• Unrealistically low prices compared to the market
• No price consistency across different products

3. No Social Media Presence or Fake Followers

Most real businesses in Nigeria have active social media accounts. However, fake businesses often:

• Have new accounts with few or no posts
• Use stolen or fake pictures of products
• Have thousands of fake followers but little engagement, such as few likes or comments

Check reviews and comments on their social media pages. If all comments are positive without any criticism, they might be fake.

4. No Customer Reviews or Fake Reviews

Legitimate businesses have genuine customer feedback. Fake businesses either:

• Have no reviews at all
• Use fake reviews that sound too perfect

Search for independent reviews on Google, Facebook, or platforms like Nairaland.

5. Only Accepting Payments via Cash or Bank Transfer

Fake businesses force customers to pay via direct bank transfer and disappear after receiving the money.

Genuine businesses offer multiple payment options, such as:

• Secure online payment gateways like Paystack or Flutterwave
• Cash on delivery for some products

Red flag: If a seller refuses cash on delivery for expensive items, be cautious.

6. No Website or Poorly Designed Website

Most trustworthy businesses have a professional website with clear details about their services. Fake businesses either:

• Have no website at all
• Use poorly designed websites with many spelling errors
• Have no terms & conditions or refund policy

Always check for a company’s website and read its policies before buying.

7. No Business Registration (CAC Registration in Nigeria)

Legitimate Nigerian businesses are registered with the Corporate Affairs Commission (CAC).

Search for the business name on the CAC website (https://search.cac.gov.ng) to verify if it’s real.

Red flags:

• No CAC registration number
• No company name matching the bank account

Final Tips to Stay Safe

• Ask for a video call before making payments to confirm the seller’s identity.
• Meet in public places for transactions if possible.
• Use trusted e-commerce platforms instead of unknown sellers.
• Check if the business has been reported for fraud on online forums.

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