Fake Online Stores in Iceland
Counterfeit e-commerce sites targeting Icelandic consumers impersonate local retailers or operate as fictitious stores, collecting ISK via card or bank transfer then delivering nothing.
Part of: Fake Online Stores
Last reviewed: 1 June 2026
Iceland's small retail market means consumers frequently shop online from both domestic and international stores. Fraudulent online shops exploit this comfort with online shopping, setting up convincing Icelandic-language websites or impersonating known brands with minimal ISK price adjustments to appear locally authentic.
Neytendastofa (Iceland's Consumer Agency) handles consumer complaints related to online shopping fraud and can assist victims in pursuing chargebacks or escalating to cross-border EU consumer protection mechanisms.
How this scam works on Iceland
A Facebook or Instagram ad for discounted outdoor gear, clothing, or electronics directs Icelandic consumers to a professional-looking website. The store may use an .is domain registered recently, Icelandic-language product descriptions, and ISK pricing. Payment is by bank card or bank transfer.
After payment, the customer receives either no communication, a tracking number that never updates, or a package from China containing an entirely different low-quality item. Customer service email goes unanswered. The website may disappear within weeks, reappearing under a different name.
Some fake stores exploit Icelandic trust in Scandinavian branding by using Swedish or Norwegian business names with .is domains, creating an impression of Nordic legitimacy.
Common red flags
- Price is dramatically below the known market price for the item in Iceland
- Recently registered .is domain with no verifiable physical address
- Only bank transfer or prepaid card payment accepted — no card chargeback protection
- Contact information is only an email with a free provider — no phone number
- Icelandic language on the site appears machine-translated with odd phrasing
- Social media ad for the store was created very recently with no organic engagement
How to protect yourself
- Buy from retailers you already know or can verify through Neytendastofa
- Pay by credit card where possible for chargeback rights
- Check business registration in Iceland's Fyrirtækjaskrá at rsv.is before purchasing
- Search the store name plus 'svik' (scam) or reviews on Icelandic social media
- Be sceptical of ads offering deep discounts on outdoor, tech, or luxury items
- Verify .is domain registration age at isnic.is — very new domains are higher risk
How to report it
- File a complaint with Neytendastofa at neytendastofa.is
- Report to Iceland Police at logreglan.is for fraud
- Contact your bank or card issuer for a chargeback if you paid by card
Frequently asked questions
Can Neytendastofa help recover money from a fake store?
Neytendastofa can mediate disputes and connect Icelandic consumers to EU cross-border consumer protection networks. For card payments, they can advise on chargeback processes with your bank, which is the most direct recovery route.