LocalImpact Report: 72% of Businesses Received a Fake Review in the Past Year

LocalImpact survey of 400 US business owners finds fake reviews have become a near-universal experience, with 79% believing they've been deliberately targeted at some point

EDMONTON, Alberta--(BUSINESS WIRE)--LocalImpact, an online reputation management platform for local businesses, released a new research report finding that 72% of US local business owners have received a fake review in the past 12 months. The study, How Fake Reviews Are Hurting Local Businesses in 2026, is based on a survey of 400 owners and operators of brick-and-mortar businesses across categories including restaurants, retail, medical practices, and home services.

The findings suggest fake reviews have moved from an occasional nuisance to a recurring operational risk. A quarter of owners (25%) reported receiving six or more fake reviews in a single year, and 7% said they'd received more than ten. Only 8% of owners were confident they'd received zero fake reviews in the past 12 months.

Coordinated attacks and competitor suspicion are widespread

The data points to a marketplace where owners believe fake reviews are being used as a competitive weapon. 79% of respondents believe their business has been targeted by a coordinated fake review attack at some point, with 42% saying "yes, definitely" and 37% saying they suspect so. Separately, 70% of owners suspect their competitors of using fake positive reviews to inflate their own ratings.

The damage extends beyond star ratings

About 3 in 4 owners said fake reviews have hurt their business in some way. Reported impacts include:

• 52% report damage to their overall star rating
• 40% report meaningful time spent managing or responding to fake reviews
• 33% report lost potential customers
• 28% report reduced revenue
• 24% report increased staff stress or morale issues
• 20% say fake reviews have made it harder to attract new hires

The staff impact is one of the less discussed findings. When a fake review accuses employees of misconduct, the people working on the floor read it, and so do prospective hires.

Removal is slow, and most owners feel exposed

Only 28% of owners said their reported fake reviews were removed promptly by the host platform. The majority described waiting periods, refusals, or unclear status updates, during which the fake review continues to influence potential customers.

At the same time, only 31% of businesses use a dedicated review management platform, and just 36% said they'd feel "very well-equipped" to handle a sudden spike in fake negative reviews.

Quote from LocalImpact

"Fake reviews have become one of the most common operational problems local business owners deal with, and most of them are managing it without the right tools," said Vitaly Motuz, CEO of LocalImpact.

About the study

The survey was conducted in April 2026 through Pollfish, an independent research platform. All 400 respondents were screened to confirm they own or manage a local, brick-and-mortar business in the United States. The survey covered their experiences with fake reviews over the past 12 months, the platforms involved, the impacts they've felt, and how they've responded.

The full report is available at https://localimpact.com/research/state-of-fake-reviews

About LocalImpact

LocalImpact is an online reputation management platform that helps local businesses monitor, generate, and respond to reviews across 30+ platforms, including Google, Yelp, and Facebook. The platform offers automated review request campaigns, AI-powered review replies, review widgets for websites, and centralized review management for owner-operators and multi-location brands. Learn more at https://localimpact.com/