Why Fake Reviews Are Driving Customers Away

When was the last time you bought something—a pair of shoes, a new coffee maker, or maybe even dinner at a new restaurant – without checking the reviews first? For most of us, it’s second nature. In fact, research shows that 99% of U.S. consumers read reviews before choosing a local business, and most won’t make a decision until they’ve scrolled through at least three to five of them.

That reliance on reviews has turned them into one of the most important trust signals a business has. But there’s a growing problem: not all reviews are real.

Fake Reviews Are More Common Than You Think

It would be comforting to believe that fake reviews are rare, but the data tells a different story. Capital One’s 2025 analysis found that nearly 30% of all online reviews are fake or suspicious and they’re growing 12% faster than real ones. ¹ Globally, that’s almost $787 billion in wasted purchases this year alone.

Other researchers back this up. Shapo.io’s 2024 report found that in some industries like electronics and apparel nearly half of reviews showed signs of manipulation. ² Even major platforms like Google, Yelp, and Amazon, who invest heavily in fraud detection, regularly report pulling down millions of suspicious reviews each year. For example, in 2024, Google alone removed or blocked 240 million reviews worldwide that violated its policies.¹

So if you’ve ever wondered whether fake reviews actually touch your business? The answer is almost certainly yes.

Customers Notice and They Care

One of the biggest misconceptions businesses have is that customers can’t tell the difference between authentic and fake reviews. But the reality is…they can. And when they do, it directly impacts whether they’ll do business with you.

  • 82% of consumers say they’ve encountered fake reviews in the past year.¹
  • 67% are actively concerned about review fraud.¹
  • And most striking: 54% say they won’t buy from a business if they suspect its reviews aren’t real.¹

That’s not just theory. It’s behavior. Customers are quick to connect the dots: if your reviews feel suspicious, what does that say about your business?

And with AI-generated content on the rise, skepticism is only getting stronger. Nearly half of consumers (46%) say they’re suspicious of reviews that look like they were written by bots or AI.¹

The Real Cost of Fake Reviews

Beyond the hit to trust, fake reviews carry a direct financial impact.

Negative fake reviews, the ones that unfairly drag your business down, can cut revenue by as much as 25%.¹ On the flip side, competitors benefiting from fake positives can see their sales climb by 12.5% in just two weeks.¹ And remember, just one extra star rating can boost demand by 38% for products and as much as 9% for restaurants.¹

It’s not hard to see how this snowballs. If fake reviews are holding you back while boosting your competitors, you’re essentially fighting an uphill battle in both perception and visibility.

Trust Is Still Your Strongest Advantage

Here’s the encouraging part: while fake reviews are real and growing, trust is still something you can actively build and defend.

Consumers want authenticity. GatherUp’s 2024 survey found that 82% of customers prefer businesses that respond to reviews, and 92% see responses as part of customer service. Even better, 73% of consumers will give a business a second chance if it responds thoughtfully to a negative review.

That means you don’t need a perfect five-star profile to win customers. You need a real one. Fresh, authentic feedback combined with transparent responses is far more powerful than a wall of suspicious five-star reviews.

So What Can Businesses Do?

Fake reviews may feel like a problem that’s out of your hands,  after all, you didn’t post them. But ignoring them isn’t safe either. The Federal Trade Commission has stepped in with updated guidelines, now issuing fines of up to $51,744 per fake review.³ And on the consumer side, 65% of people believe businesses aren’t doing enough to address review fraud.¹

So what’s the path forward?

  • Detect early:  Keep an eye on your review profiles for suspicious patterns.
  • Dispute effectively: Fraudulent reviews can be reported and removed, but it often takes persistence and documentation.
  • Defend consistently:Don’t just protect your reputation; make sure competitors aren’t gaining unfair ground.
  • Demonstrate authenticity: Respond to reviews quickly and thoughtfully. Customers notice, and it builds trust.

The Bottom Line

Fake reviews are everywhere, but they don’t have to drive your customers away. Businesses that act proactively, removing fake content, responding authentically, and protecting trust, are the ones that continue to grow.

That’s where GatherUp comes in.

Our all-in-one platform helps you:

  • Build your reputation with authentic customer reviews.
  • Manage feedback across locations to improve visibility and service.
  • Defend against fraud with automated monitoring, detection, and dispute workflows that remove fake negatives targeting your business and inflated positives boosting competitors.

With GatherUp, you don’t just keep your reputation safe, you make it a competitive advantage.

👉 See if your business was flagged for fake reviews

Footnotes

  1. Capital One Shopping, Fake Review Statistics (2025) — link
  2. Shapo.io, Fake Review Statistics (2024) — link
  3. FTC, Guides Concerning the Use of Endorsements and Testimonials in Advertising
  4. GatherUp, Beyond the Stars: How Consumers Use Reviews to Choose Local Businesses (2024)
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