In a survey sponsored by online reputation management platform LocalImpact, 72% of business owners polled said they had received a fake review in the past 12 months.
The survey of brick-and-mortar business owners across sectors including retail, restaurants, medical practices and home services suggested that fake reviews have moved from an occasional nuisance to a recurring operational risk. A quarter of owners recounted receiving six or more fake reviews in a single year, with 7% saying they received more than 20. Only 8% of owners were confident they received zero fake reviews over the 12 previous months.
Reviews are important to business but vulnerable to manipulation. Many owners believe fake reviews are a competitive weapon used against them: 79% of survey respondents said they believed their respective business had been targeted by a coordinated fake review attack at some point. Some 70% of owners said they suspect their competitors of using fake positive reviews to inflate their own ratings.
About three in four owners said fake reviews hurt their business in some way:
- 52% noted damage to their overall star rating.
- 40% pointed to meaningful time spent managing or responding to fake reviews.
- 33% believed they lost potential customers.
- 28% suffered reduced revenue.
- 24% cited increased staff stress or morale issues.
- 20% maintained fake reviews have made it harder to attract new hires.
The impact of fake reviews on employees of companies that receive them is an effect that may be less considered, but it till can be substantial, LocalImpact observed. When a fake review accuses employees of misconduct, the people working for the businesses see it and so do prospective hires.
Only 28% of owners said fake reviews they reported were removed promptly by host platforms. The majority described waiting periods, refusals or unclear status updates, all while the fake review continued to influence potential customers.
In terms of response, 31% of business owners had turned to a dedicated review management platform, while 36% said they’d feel very well-equipped to handle a sudden spike in phony negative reviews.
