Hey there! It's Talk About Money Tuesday, my favorite day of the week!π€
How to avoid becoming a victim of scams like those annoying toll road text messages is a key part of National Consumer Protection Weekβ, which started Sunday. But here's a powerful consumer-related scam that's a little more subtle: fake online reviews.
Bogus reviews can turn out to be a huge problem for young people (and some adults) who shop online for, well, pretty much everything. Businesses sometimes pay for fake five-star reviews to boost sales and scammers post fake one-star reviews to hurt their competitors.
For young people, learning how to critically evaluate reviews is an essential financial literacy skill. Let's get into how to teach youth to look beyond the stars and avoid wasting money on products that don't live up to the hype.
Money Stat
30%
If you're the kind of shopper who reads every online review before buying, you've probably run across AI-generated testimonials or paid reviews. According to data compiled by Capital One Shopping in 2025, an average of 30% of online reviews are "considered fake or inauthentic."
Fake reviews literally pay off for businesses, Capital One's data show. In a five-star system, an additional star can boost demand for a product by nearly 40%. Restaurants can count on a jump in revenue of up to 9% from an additional star.
On the bright side, the Federal Trade Commission is cracking down on companies who try to game the review system. Businesses can now face fines of up to $53,000 per violation.
Money in the News
The news: A New York man was arrested for selling more than $2 million worth of counterfeit Nintendo accessories on Amazon. A slew of bad reviews about his fake merchandise led to Amazon calling the cops to investigate.
What it means for young people: Real negative reviews can act as an early warning system that helps them avoid scams or counterfeit products. The people who purchased those fake Nintendo accessories and left scathing reviews to warn off others did a bunch of future shoppers a huge favor!
Tip for parents & mentors: Explain to young people that they can shrug off one bad review, but if multiple shoppers mention the same problem about a purchase β it runs small or breaks easily β that's valuable data.
Also, talk about how negative reviews can sometimes come from unrealistic expectations. I once read a review for a cordless handheld vacuum cleaner that said the battery only lasts 20 minutes. As someone who has used a handheld vacuum cleaner for years, I know 20 minutes of battery life is typical.
So teach young people to ask, "Was this product actually supposed to do what the reviewer expected?" when they see specific complaints in a review. Once they arrive at an answer, they may just go ahead and buy.
I love my handheld vacuum cleaner...
Get in the Zone
Money skill: How to spot review red flags
Why it matters: Comparison shopping today is not just about comparing prices. It also means checking credibility. Teaching teens how to evaluate reviews builds critical thinking that can be applied to bigger financial decisions later, such as loans, cell phone contracts, and major purchases.
Try this: Encourage your teen to study reviews the same way they would study for a test. Detailed feedback that mentions both pros and cons, not just extreme praise or anger, is ideal. You can also point out instances of the same wording across multiple posts, which is mostly likely a sign of a bot-generated review.
Spend some time checking reviewer profiles together. If you see someone reviewing dozens of unrelated products or businesses in a single day, that's a red flag.
All of this helps young people build the kind of healthy skepticism they need to make thoughtful and informed decisions about what to buy.
Smart Money Quiz
β
Which is the strongest sign that a review might be fake?
A. It includes both pros and cons
B. It was posted recently
C. It uses overly generic phrases with no specifics
D. It has five stars
(The answer is at the end of this newsletter.)
The Language of Money
Use these youth-friendly definitions to talk with your teen or college student about how to be a savvy online shopper who knows how to protect their money.
π Comparison shopping: Looking at different stores or websites to find the best price or quality before buying.
ποΈ Consumer: A person who buys goods or services.
π€ Fake review: A false comment someone posts to trick people into thinking that a product or service is better (or worse) than it really is.
π± Influencer marketing: When a popular person online gets paid to show a product or talk about it.
π© Red flag: A warning sign that something might not be safe, true, or a good deal.
β Testimonial: When someone shares their positive opinion about a product to encourage others to buy it.
Loose Change
β Notice a wave of one-star reviews hitting a business all at once? It could be what Google calls a Negative Review Extortion Scam.
π¦ An unexpected package at your doorstep could be the start of a scam that involves someone writing a fake review in your name.
π A working paper from the National Bureau of Economic Research digs into the harm caused by fake Amazon reviews. Here's an eye-opening summary.
Thanks for reading! If you know someone who cares about youth financial literacy, share this newsletter with them. And if this newsletter was forwarded to you, please subscribe βhereβ.
'Til next time,
Audrey
βFounder &
Certified Financial Education Instructorβ
The FinLit Zone
ANSWERβ
βC. It uses overly generic praise with no specifics. Real reviews usually include specific details about use, fit, durability, performance, the quality of the service, or the menu.
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