Australians have lost over 7.5 million dollars to online shopping scams this year and this is set to rise over the coming weeks.
Find out how to protect yourself while you shop for your loved ones this Christmas.
Australians spent 1 million dollars every minute over the Black Friday and Cyber Monday sales this year! Now we are moving towards Christmas, the next shopping frenzy is about to start. With changes to the shopping landscape, more people are preferring to shop online from the comfort of their couches. However, shopping online (like everything else we do online) comes with risk. With the increase in shopping, there will likely be an increase in shopping scams. Online shopping scammers like to take advantage of well-known sales periods, but there are certain things we can do to protect ourselves against scammers during this time.
Online shopping scams usually consist of a scammer pretending to be a genuine seller. They may even go to the extent of having a fake website that looks very convincing. In some instances, with high-end purchases, you may receive a fake product or in many cases no product at all.
One of the biggest warning signs with most scams is, ‘if it looks too good to be true, it generally is’. Remember, if a product is advertised at an incredibly low price or the benefits of the product seem unbelievable, it might be a scam.
Scammers can also set up fake online businesses and advertise on social media platforms. Just because you see a new product advertised on your favourite platform, it doesn’t mean that this isn’t a scammer trying to lure in potential customers. The scammer will then shut down and disappear once they have received payment. Research is always important, no matter where you see an ad.
Look out for a locked padlock symbol in your browser that indicates a secure communication channel between the browser and the server on which the website is hosted. It signifies that the connection to the website is encrypted using HTTPS and has an SSL/TLS certificate.
With online shopping scams, the method of payment is a big tip-off as to whether the retailer is legitimate. If they ask you to pay via money order, wire transfer, preloaded gift cards or digital currencies, BEWARE! Look out for sellers with secure payment services such as PayPal or secure credit card transactions.
Never send money or give credit card or online account details to anyone you don’t know or trust and do your research when it comes to online retailers. Always use a secure payment method when purchasing online
- Research the seller- check online forums, feedback, and reviews from previous customers.
- Check for contact details such as a phone number or email, it will make it easier to contact them if something goes wrong.
- Check the site is secure, by looking out for the padlock and the URL starting in https:// and not http:// — this will show you there is a level of encryption used to protect your data.
- If it is an Australian business, check the business is registered by using the Australian Securities and Investments Commission (ASIC)’s business name search here.
- Use secure payment methods such as PayPal or credit cards so that you can dispute the charges if there is a problem.
- Never send your credit card number in an email.
- When you enter your card details, do not provide your bank account number as well.
- Be aware that debit cards do not have the same level of protection as credit cards against fraudulent use.
- Regularly check your statements. If you’ve been shopping online, keep an eye on your transaction history and report anything suspicious as soon as possible. A small, unauthorised charge can be the first sign of credit card theft.
- Before you browse or shop online, ensure your computer’s anti-virus software is up to date.
- If you need to create accounts with online stores, make sure you use strong and unique passwords – don’t reuse your internet banking, email, or social media passwords.
If you suspect you have fallen victim to an online shopping scam, contact your financial institution immediately. They can help stop any additional money from leaving your account. You can contact your local consumer protection agency Consumer Affairs Victoria and Report to Report Cyber.
Talk to your family and friends about reputable online retailers and ones to avoid and always do your research before purchasing online.
