Beware of Fake Online Deals and Avoid Scammers This Sales Season

Australians have lost about $12.9 million to online shopping including ad fraud so far this year, and the ACCC is urging consumers to beware of risky deals as they approach pre-holiday sales.

Over 26,000 online shopping fraud reports have been received by Scamwatch, which is more than the total reported throughout 2020. This is in line with his 2020 global trend of more people shopping online during the pandemic.

“This is a very busy time of the year, and scammers often try to take advantage of unsuspecting shoppers who are in a hurry to organize their gifts.

“People are often looking for the best deals online, especially during Black Friday and Cyber ​​Monday sales, so it’s easy to get caught off-guard and scammed.”

In online shopping scams, scammers create fake online stores that look just like the real thing and sell items at heavily discounted prices, but the items are counterfeit or not delivered to the buyer.

Scammers also create fake stores on social media platforms and post fake ads on legitimate advertising websites. They may require payment or offer discounts on payments made through direct bank transfers or cryptocurrencies.

“It is important to be aware of possible scams before making a purchase. Always double-check that the PayPal platform is being used and be suspicious of offers that are too good to be true or merchants that require bank transfers, gift cards or virtual currency payments. Please,” Ricardo said.

“Research the seller to see who you’re buying from. Search online for ‘complaint’ or ‘fraud’ in addition to the product or company name to see what other people are saying.” confirm. If you buy from a social networking site, check the merchant’s history and read reviews from others who have done business with that merchant. ”

“When paying, avoid advance payments via bank transfer or arrangements that require payment in digital currencies such as Bitcoin. Always use secure payment services such as PayPal or credit card transactions,” Rickard said. said Mr.

If you are waiting for a parcel, remember that scammers also take advantage of people expecting delivery.

“Australia Post or any other parcel delivery company will never send you an email, call or text asking for personal or financial information or payment. Instead, we offer an app that allows you to track your parcel,” says Rickard.

Losses from online shopping fraud span most age groups, but people aged 25 to 34 lost the most money, $2.4 million.

The number of reports of financial losses has decreased this year, indicating that more people are able to recognize and avoid online shopping fraud, but those who suffer losses suffer more losses. , with an average loss of over $1,450, compared to $1,190 last year. Year.

Some of the significant losses reported to Scamwatch this year relate to large purchases.

• When it comes to online shopping fraud, pet fraud was the most reported and the most costly. Scamwatch has received more than 2,800 reports so far, with losses of around $3.5 million, a 78% increase over the same period last year.
• Vehicle sales fraud resulted in significant losses of over $1.9 million, but other common products included caravans, shipping containers, and electronic devices such as laptops, phones, and game consoles.
• Shipping container fraud was a new trend this year, costing consumers over $676,000. While they were popular in markets and classified sites, the scammer also created a fake his website and pretended to have his real ABN. Scamwatch has taken steps to remove some fake websites.

If you believe you have been scammed, contact your bank or financial institution immediately. If the fraud occurred on a social media platform, please contact that platform and let us know the status of the fraud.

You can also report to Scamwatch and find more information on where to get support on our website.

Know Your Consumer Rights

The ACCC also urges people to be aware of their consumer rights in the event of an issue, even if the item was purchased during the sale season.

“Remember that you are entitled to a consumer warranty under Australian Consumer Law. If it doesn’t work as it should, you are entitled to redress depending on the circumstances and the nature of the problem,” Rickard said.

“If you have a problem with a product, please contact your retailer first. They cannot refuse to help by sending you to the manufacturer. We can provide you with detailed information about your rights, and we can also assist you in negotiating a solution between you and the seller.”

For more information on consumer guarantees, please visit the ACCC website.

Note to editors:

Figure 1: Number of People Who Reported (and Classified) Online Shopping Fraud and Age by Loss (January 1-October 31, 2021 vs. Full Year 2020)

Table 1: Top 10 Products Reported in Online Shopping Fraud in 2021 (Till 31st October), Largest Losses