June 12, 2026
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Small Businesses Say Fake Reviews Are Running Rampant — Is This True, and What’s the Solution?
A recent report issued by LocalImpact — with survey results being derived by polling 400 U.S. small business owners — suggests that there’s a serious problem concerning fake reviews targeting local establishments.
“If you run a local business, fake reviews are now part of the job. 72% of the owners we surveyed say they’ve received at least one fake review in the past 12 months, and only 8% are confident they’ve received zero,” Boris Mustapic wrote in describing the survey results.
“The volume isn’t trivial either. A quarter of owners report receiving six or more fake reviews in the past year, with 7% saying they’ve received more than ten,” he added.
Other top-line takeaways presented by the polling results:
- Nearly four-fifths (79%) of business owners polled stated that their business was the subject of a targeted fake review attack.
- Suspicion runs deep in the other direction as well, with 70% of respondents believing that their competitors were leveraging positive false reviews to enhance their own reputations.
- It appears difficult to get alleged fake reviews scrubbed, with only 28% of independent business owners reporting success in this arena.
- Less than one-third (31%) of businesses are adequately prepared to respond with a dedicated review management platform.
Fake reviews appear most prevalent on Google (~68%), Facebook (~53%), and Yelp (~52%), with Trustpilot (~20%), Tripadvisor (~19%) pulling up the rear.
What exactly constitutes a fake review boils down to detection signals, with factual inaccuracy (~60%) being the No. 1 indicator of a false review in the eyes of independent business owners. That means reviews which include details which are way off base versus the actual business operations, inclusion of amenities not offered by the business, a non-existent location, or workers who don’t actually work there. Verifying that the complainant was never actually a customer, no prior review history on the account, a glut of similar reviews hitting at the same time, or platform flagging/auto-removal are other signs of false reviews.
“Despite the scale of the problem, most local businesses are still managing it with limited tools. Only 31% use a dedicated review management platform. When asked how well-equipped they’d feel handling a sudden spike in fake negative reviews, only 36% said ‘very well-equipped.’ 17% admitted they aren’t well-equipped or aren’t equipped at all,” Mustapic wrote, highlighting that this exposed a significant deficit in current small business capabilities.
And when it comes to damage, the real elephant in the room, the responses showed a similar pattern of anxiety or worry:
- On the marketing side: More than half (52%) of businesses stated they took damage to their star rating as a result of fake reviews, while 33% pointed to lost potential customers — and more than a quarter (28%) suggested they’d lost revenue.
- Time wastage: With 40% of owners reporting that they’ve essentially wasted time and effort in managing / responding to fake reviews, that’s an operational drawback that’s hard to ignore. A further 17% admitted they’d engaged with legal professionals over fake reviews, and 27% have outsourced the problem to third-party agencies — another expense.
- Staffing issues: About a quarter (24%) of independent business owners said that fake reviews had resulted in stress among their staff members, alongside morale issues tied to the same. Approximately 20% of owners further stated that these false reviews had led to difficulty in attracting new applicants.
“Fake reviews used to be an occasional annoyance. Based on the latest data, they’ve graduated into a category of operational risk that local businesses now have to manage actively, the same way you’d manage payroll fraud, inventory shrinkage, or any other recurring cost of doing business,” Mustapic concluded of the report’s findings.
BrainTrust
Nicholas Morine
Recent Discussions
Discussion Questions
Do you believe the data presented regarding fake reviews and their impact on U.S. small businesses to be accurate? Why or why not? Are there any obvious weak or strong points?
What steps should small businesses be taking, beyond conventional wisdom, to mitigate the harm and number of false reviews targeting their business?
Are review platforms doing enough to halt fake reviews targeting small (and other) businesses? If not, what needs to be done?
Poll
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Fake reviews are a growing issue, partly made worse by AI. As most reviews surface on third-party platforms, it is hard for individual businesses to solve the problem – though they can use things like reporting tools to seek removal. That said, there is something of a counterweight as, in our data, we find that the proliferation of fakes has reduced trust in reviews by consumers. That said, people still rely on aggregate ratings, so this is not an entirely adequate resolution. One potential solution is to signal authenticated buyers, virus general reviews, but this is deponent on platforms and doesn’t always crowd out the noise.
Let’s get a little more granular here. Betting the concern isn’t fake reviews, it’s just fake negative reviews. Anyone care to guess how many positive/neutral reviews come from people who are influenced in some fashion to say nice things. (ever hear of the Amazon Vine program – they don’t ask for good reviews, but let’s face it free product may just push a review in a more positive direction). So positive reviews are also somewhere on the spectrum of being fake. Review credibility i(n all directions) is an issue, and Retailers putting more time into managing the reviews will be hard. So to all agentic routines, and mean spirited competitors writing bad reviews – you’re poisoning the pot for everyone.
Good point, but isn’t a fake positive review concerning to a competitor (or perhaps I should ask “wouldn’t it be such, if they were only aware of it?”)
I would argue that 100% of businesses are “still managing it with limited tools“, insofar as they really have no control over what gets posted.
Ultimately this is a problem review sites have to face and fix (so perhaps we should back up a step and say they first have to want to fix it). Some sites are better than others – at least to the extent that they make minimal efforts like validating a purchase – but for the most part there are few safeguards….and it shows: when I can open up a restauraant review and be greeted by a comment like ” 1 star: I’ve never actually eaten there but…” I have to wonder if ultimately anyone is well served by anarchy.
One fake review might not make or break a business. Most businesses operate with many customers over the course of a year. Smart business owners ask their customers to put in a good review, especially when their customer is happy about the results. However few businesses can claim that all of their customers are elated every time. There are bound to be negative reviews. Not having them is an immediate red flag for those using reviews to assess a business. Companies like Bazaarvoice helps to manage UGC and review content with authentication, confirmed buyers, and management of reviews-which is one way for businesses to build in safeguards against fake reviews. The ease of the review makes it inevitable to have some fake ones from time to time- it is a cost of doing business- part of PR and business reputation. Just to be clear, the more business you do the less impact it will have. Whether from an unsavory competitor down the street or a former employee with a grudge, these will be part of the universe. Helping customers sift through relevant reviews, managing the reputation through tools and cleanup services, using syndicated reviews vs the public venues of Google or Facebook might be options that small businesses leverage to counter the challenges. What is one bad review against 100 exceptional ones with word of mouth references?
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Fake reviews are a growing issue, partly made worse by AI. As most reviews surface on third-party platforms, it is hard for individual businesses to solve the problem – though they can use things like reporting tools to seek removal. That said, there is something of a counterweight as, in our data, we find that the proliferation of fakes has reduced trust in reviews by consumers. That said, people still rely on aggregate ratings, so this is not an entirely adequate resolution. One potential solution is to signal authenticated buyers, virus general reviews, but this is deponent on platforms and doesn’t always crowd out the noise.
Let’s get a little more granular here. Betting the concern isn’t fake reviews, it’s just fake negative reviews. Anyone care to guess how many positive/neutral reviews come from people who are influenced in some fashion to say nice things. (ever hear of the Amazon Vine program – they don’t ask for good reviews, but let’s face it free product may just push a review in a more positive direction). So positive reviews are also somewhere on the spectrum of being fake. Review credibility i(n all directions) is an issue, and Retailers putting more time into managing the reviews will be hard. So to all agentic routines, and mean spirited competitors writing bad reviews – you’re poisoning the pot for everyone.
Good point, but isn’t a fake positive review concerning to a competitor (or perhaps I should ask “wouldn’t it be such, if they were only aware of it?”)
I would argue that 100% of businesses are “still managing it with limited tools“, insofar as they really have no control over what gets posted.
Ultimately this is a problem review sites have to face and fix (so perhaps we should back up a step and say they first have to want to fix it). Some sites are better than others – at least to the extent that they make minimal efforts like validating a purchase – but for the most part there are few safeguards….and it shows: when I can open up a restauraant review and be greeted by a comment like ” 1 star: I’ve never actually eaten there but…” I have to wonder if ultimately anyone is well served by anarchy.
One fake review might not make or break a business. Most businesses operate with many customers over the course of a year. Smart business owners ask their customers to put in a good review, especially when their customer is happy about the results. However few businesses can claim that all of their customers are elated every time. There are bound to be negative reviews. Not having them is an immediate red flag for those using reviews to assess a business. Companies like Bazaarvoice helps to manage UGC and review content with authentication, confirmed buyers, and management of reviews-which is one way for businesses to build in safeguards against fake reviews. The ease of the review makes it inevitable to have some fake ones from time to time- it is a cost of doing business- part of PR and business reputation. Just to be clear, the more business you do the less impact it will have. Whether from an unsavory competitor down the street or a former employee with a grudge, these will be part of the universe. Helping customers sift through relevant reviews, managing the reputation through tools and cleanup services, using syndicated reviews vs the public venues of Google or Facebook might be options that small businesses leverage to counter the challenges. What is one bad review against 100 exceptional ones with word of mouth references?