The warning from the Australian Competition and Consumer Commission comes after, already in 2017, the commission’s Scamwatch service has received more than 1000 reports of online shopping scams worth more than $150,000.
Younger Australians in the 18-to-24 age bracket made up the biggest group of people who reported losing money to online shopping scammers and the ACCC expresses concerns that Scamwatch statistics also show nearly one in every two people reporting the scam lost money.
“Australians love shopping online and scammers take advantage of this by setting up fake websites that look like genuine online stores, including professional-looking design, stolen logos, and even a ‘.com.au’ domain name and/or stolen ABNs,” ACCC deputy chair Delia Rickard said.
According to Rickard, while the often-professional design of fake retailer websites can make them look almost exactly like the real deal, there are some tell-tale scam signs consumers can look for.
“The biggest tip-off is the method of payment: scammers will often ask you to pay using a money order, pre-loaded money card, or wire transfer, even gift cards from well-known retailers. If you make a payment this way to a scammer, you’re highly unlikely to see that money again,” Rickard warns.
“We all love a bargain, the bigger the better, but scammers prey on this and will use the ‘fear of missing out’ to cloud your judgement. If in doubt, do a Google search on the website you’re thinking of buying a product from. There are many great product review services that can tip you off to stay clear of a fake retailer.”
For more advice on how to avoid online shopping scams, visit Scamwatch, and here’s some tips on how to avoid scams from the ACCC:
• Do some independent research on a website you’re thinking of buying a product from and check out reviews from other consumers.
• Avoid any arrangement with a stranger who asks for up-front payment via money order, wire transfer, international funds transfer, pre-loaded card or electronic currency. Never send money or give credit card or online account details to anyone you don’t know or trust and never by email.
• When making online payments, only pay for items using a secure payment service—look for a URL starting with ‘https’ and a closed padlock symbol, or a payment provider such as PayPal. Think twice before using virtual currencies such as bitcoin – they do not have the same protections as other transaction methods so you can’t get your money back once you send it
• When using retail websites, find out exactly who you are dealing with. If it is an Australian company, you are in a much better position to sort out the problem if something goes wrong. You can check ABNs here.
• Check if the website site has a refund or returns policy, and that their policies sound fair. The better online shopping sites have detailed complaint or dispute handling processes in case something goes wrong.
• Avoid clicking on pop-up ads that can download viruses, spyware, malware, and other unwanted software to your computer.