The adage “if something appears too good to be true, it usually is” seems increasingly relevant as specialists alert to a significant rise in online shopping fraud that is costing Australians millions.
According to the National Anti-Scam Centre, scams related to shopping have been the most frequently reported type of fraud resulting in financial loss this year, with a total of 19,662 instances noted.
Out of these cases, 9,628 led to a loss of 8.6 million dollars, marking a 19 percent increase compared to losses recorded in the same timeframe of 2024.
The centre’s advisory comes at an opportune moment as Black Friday sales commence, with consumers preparing to spend billions during what is recognized as the largest shopping event of the year.
“Scammers take advantage of Black Friday sales, knowing that shoppers are eager to find deals, and they tend to create a sense of urgency and stress that comes with a busy shopping season,” expressed Catriona Lowe, deputy chair of the Australian Competition and Consumer Commission.
Originally, Black Friday was a single day of discounted shopping occurring the day after Thanksgiving in the U. S., but it has now evolved into an extended sale period that has gained global recognition.
In a report released this month by the Australian Retailers Association and Roy Morgan, it was estimated that Australians will spend an unprecedented 6.8 billion dollars over the four days from November 28 to December 1.
This reflects a 4 percent rise from 2024, with the average planned expenditure per individual projected to exceed 800 dollars.
However, while many authentic discounts will be available, Lowe advises shoppers to be patient, verify the credibility of websites and deals, and exercise caution when it comes to sharing personal or financial information online.
“A few straightforward checks prior to making a transaction can greatly help in avoiding scams and protecting your money,” she stated.
This guidance was supported by Monica Whitty, a cybersecurity expert from Monash University, who emphasized that shoppers should not feel pressured to buy just because there is a sale.
“My studies indicate that those who fall victim to online shopping scams often exhibit high levels of impulsivity. . . Fraudsters depend on consumers making hasty and impulsive choices without looking into the fine print. ”
Whitty, who is a professor in Monash’s Department of Software Systems and Cybersecurity, also warned consumers against shopping while on public Wi-Fi, as it is not secure and could jeopardize personal and financial information.
She advised individuals to make purchases only on reputable sites and from well-known retailers.
“If you receive promotional emails about sales, refrain from clicking on any links as they could be phishing scams,” she advised.
Instead look up the business independently and visit the official website directly. Ensure that a padlock icon appears in the URL bar; without it, the site lacks security.
“Cross-check the product with other reputable retailers to confirm the authenticity of the sale, and always use secure payment options like a credit card or PayPal when making purchases. ”
The National Anti-Spam Centre, which was founded in 2023 and is associated with the consumer protection agency ACCC, has cautioned the public to be vigilant against various scams after Australians reported almost $260 million in total losses through its ScamWatch service during the first three quarters of this year.
This indicated a 16 percent rise in financial losses, even though the number of scam reports dropped by 20 percent, totaling 159,319.
The centre noted that most scammers initially reach out through online content, including fake websites, advertisements, social media platforms, and mobile applications.
It highlighted that scammers are increasingly utilizing social media profiles, especially on Facebook and Instagram, to access victims’ personal circles. Once they gain entry, they impersonate the account holder to perpetrate fraudulent ticket sales and other schemes like “fire sales” and investment fraud.
Lowe emphasized the importance of Australians verifying the identities of those they interact with online, as scammers exploit trusted relationships and social media to deceive individuals into providing money and personal details.
Individuals can report any suspicious behavior on the ScamWatch website, which also offers advice on identifying warning signs and steps to take if one has fallen victim to a scam.
Additionally, the ACCC has recently alerted legitimate retailers that it will be monitoring for any deceptive sales practices that could mislead consumers during Black Friday, including false price comparisons, misleading disclaimers, and advertising promotions as “store-wide” when only a limited selection of items are actually discounted.
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