Australians warned of increased risk of online scams

The end-of-year sale season increases the risk of online scams as internet traffic surges with shoppers seeking deals.

Mark Jones, Senior Partner at Tesserent Cyber Solutions from Thales, has provided guidance on how Australian retailers and consumers can navigate online safely during this busy period. He cautioned against deals that appear too attractive and advised shoppers to visit retailers' websites directly instead of following links in emails or social media ads.

According to data from the Australian Bureau of Statistics, over 11% of Australians encountered scams or credit/debit card fraud in the 2022/2023 period. It was also reported that men tend to fall victim to scams more often than women. In the same period, 8.7% of individuals, equating to 1.8 million people, experienced card fraud, while 2.5% or 514,300 people were victims of scams. Additionally, identity theft affected 1% or 199,100 people, and 2.1% or 434,300 faced online impersonation.

The Australian Retailers Association forecasts that Australians will spend AUD $11.8 billion on gifts in 2024, an increase of AUD $1.6 billion from the previous year. During the Christmas period, such spending can become a lucrative opportunity for criminals.

Shopping scams notably include misleading sales promotions, frequently promoted through social media, and offering items at heavily discounted prices. A tactic used by scammers is the non-delivery of paid products. Furthermore, scammers may collect credit card details to siphon funds from victims' accounts. In 2023, Westpac noted a 47% rise in buying and selling scams, where customers were lured by competitive pricing on fake websites, social media ads, or online marketplaces.

Scammers are increasingly using SMS to target consumers. Jones remarked, "It's quite easy for a scammer to send a text message that has a retailer's name on it. If you receive a sale offer over SMS, don't click the link. Go directly to the retailer's website to find the offer."

Fake shipping notifications and fraudulent charity appeals that exploit people's goodwill during the holiday season are also prevalent.

Tesserent provided several strategies for retailers to enhance security and assist in protecting their customers during peak times. Retailers are advised to monitor for scam sites and fraudulent advertisements actively. Investing in Digital Risk Protection Service (DRPS) tools helps identify fake websites and ads that mimic their brand, safeguarding customer trust and brand reputation.

Verification of shipping notifications with customers can mitigate confusion caused by fake notifications. Retailers are encouraged to clearly communicate order tracking procedures and direct customers to confirm notifications via their accounts on the retailer's website.

Payments through secure options such as PayPal, Google Pay, and Apple Pay offer added protection against fraud, reassuring customers of the retailer's commitment to safe transactions.

Additionally, educating staff on identifying phishing emails and fake promotions is crucial, especially when businesses employ temporary or less experienced staff during the holiday season. Engaging with customers to provide fraud awareness tips is also recommended.

For consumers, Jones suggests remaining sceptical and trusting one's instincts—if an offer seems too good to be true, it likely is. To circumvent phishing attempts, avoid clicking on email links and navigate directly to the retailer's website.

Maintaining records of online purchases and tracking deliveries helps verify the authenticity of shipping notifications. Using secure payment methods like Apple Pay, Google Pay, and PayPal is advised to prevent the direct sharing of credit/debit card details with retailers.