Online Spending Keeps Climbing
This year, Australians are expected to spend over $58 billion on pre-Christmas shopping – an increase of around 11% on pre-pandemic spending – according to the Australian Retailers Association and market research company Roy Morgan. A significant portion of this will be spent online. “Although online shopping is convenient and the preferred way to shop for many Australians, it comes with a risk”, warns the ACSC. “Cybercriminals often target online shoppers in a bid to steal their money or personal details. And they do this through a variety of methods.” While lockdowns have caused record low brick-and-mortar sales, online retail spending is on the rise. Globally, the online share of retail sales mounted from 16% to 19% during the pandemic, according to a report issued in May 2021 by the United Nations Conference on Trade and Development (UNCTAD). This figure is expected to reach 22% by 2024.
Worrying Scam Statistics
It’s no surprise that cybercriminals try to bank in on this trend. To this end, they have refined a myriad of scamming tools. They set up very real-looking fake websites. Sell products that don’t exist via social media. Impersonate well-known brands. Steal people’s personal and payment information. Install malicious software on shopper’s devices. And so on. Data from Scamwatch shows a worrying trend. While towards the end of last year the reported financial losses to shopping scams hovered around $700,000 per month, the average amount lost in September 2021 alone totaled $1,047,866! Of the 2,823 reports, about one third of consumers reported a financial loss. Others just lost personal information, for example. Based on the number of reports that provided an age group, those aged 25-45 make up nearly half of the victims of online shopping fraud. Women are slightly more likely to fall victim to these scams and also report slightly higher losses.
What to Look Out For
“Once a cybercriminal has your financial details or receives your money, you are unlikely to get it back. Not only will you be disappointed when your goods don’t arrive, you will also have lost the money you used to buy the pretend items”, comments the ACSC. The best way to stay secure while shopping online is to know what to look out for. Moreover, it is important to boost your protective security measures. Some general tips:
Type web addresses directly in your browser, rather than clicking on a link. Stick to well-known and trusted brands. If in doubt, search reviews from other customers. When shopping on Facebook, check if there’s a blue tick next to the page’s profile. This tick tells you that the page has been verified by Facebook. On Instagram, make sure the page is public. It’s unlikely a private page belongs to a real seller. Read the fine print, including complaints handling, warranty information and the company’s privacy policy. Also check the company’s contact details. Use secure payment methods. Requests for payments by gift card, wire service, money order or cryptocurrency raise red flags. Install an antivirus program and consider a VPN.
Also good to know, is what kind of personal information webshops collect. Of course, some of the data collected by online stores is necessary for the site to function properly. However, when the seller gathers personal information that we wouldn’t share with just anyone, it starts to feel uncomfortable.
