The first rule of online shopping safety in Australia is to put the brakes on before parting with your money. Make sure the site is what it claims to be, the seller is verified and you are using a secure payment method. When you come across a discount that is too good to be true, consider it a red flag. It will not take long to do and may spare you some expletives at the laptop as well as your hard earned cash and personal data.
I am Nicholas Fairchild. I have been guilty of my share of errors when buying online and can vouch for the fact that a slick website is no guarantee of anything. I was once about to put in an order for a high end household product on the strength of a very persuasive social media ad. Then I noticed the price was underpriced, the returns page had all the hallmarks of a translation by a robot and the countdown timer was having its effect. I let the tab go. Far less expensive than to have to deal with a chargeback.
What follows is a guide to dealing with online shopping scams, from identifying bogus stores to making safer payments and knowing the right course of action if scammed. We will also look at identity theft, bank and social media scams and the Australian services available to you.
Online Shopping Safety In Australia
Be it camping equipment for the Stuart Highway or a case of groceries and concert tickets, Australians do their shopping online for the convenience of it. Choosing secure Adelaide digital stores can help, but the problem is scammers are aware of how quickly one can be moved to buy when a sale is on from a brand you know, the price is tempting or stock is running out.
You only have to see the reports put out by the authorities in Australia to understand the need for scam prevention; they are rife in investment, shopping and identity matters and the losses reported are not the whole story. If you do not know the seller, view the transaction as something of a risk assessment.
A Pause-Check-Pay Routine
Do not rush to the checkout. Take a minute to run through the web address, the seller and his returns policy, the delivery he is promising and your means of payment. Only then should you pay, and only if it all adds up.
Urgency is what does in most people. The site has two left, the advert on your feed is 80 per cent off for ten minutes or a private message from the seller tells of another buyer standing by. It is like someone shaking the dunny door while you are trying to make head or tail of the instructions. There is no obligation to go along with it.
Make note of the receipt, order confirmation, any messages from the seller and tracking details. A screenshot of the product page is a good idea in case it vanishes.
Telling A Fake Store From A Real One
Scammers will replicate customer reviews, colour schemes and even the logos and photos of a product to give their site a professional air. They will have payment pages that appear secure. Do not be taken in by looks.
There is no need to play detective with a magnifying glass, but you should be able to pick up on the warning signs before they turn into a costly mistake.
Examine The Website
Go over the domain name. An odd ending, extra hyphens or an address modelled on a better known retailer is telling. The padlock icon is there to tell you the connection is encrypted, not that the seller is above board.
An Australian number, a physical address and sensible terms of delivery should be in evidence. Put the address in a map service of your own accord, do not use one on the site. Should it point to a private residence or empty space, leave it.
Put the seller’s name to a search along with “scam” or “refund” to find some independent opinion. The ones on the store are no help; they are inexpensive to fabricate and you will find them all written in the same over enthusiastic tone.
Unrealistic Discounts
They are a hallmark of fraud. You may get a clearance here and there but when a designer bag or new phone is priced well under the rest of the country you should be wary.
Have a look at what other reputable sellers are asking. Factor in the GST, insurance and customs charges. Once a processing fee of indeterminate origin shows up at checkout the headline price is not so appealing.
| Warning Sign | What It Could Mean | A Safer Course Of Action |
|---|---|---|
| An Australian price that is well under the norm | The store may be a sham, or you are looking at counterfeit merchandise and compromised payment data | Do your due diligence: check the seller and see how his prices stack up before parting with money |
| Cryptocurrency, gift cards or a bank transfer is what the seller wants | You have little in the way of payment protection and it is likely a scam | Leave it, or put down a payment method where you can put in a dispute |
| Business is identified by nothing more than a social media page | Could be an impersonator or an account that will not be around long | Look for the business details on an independent site |
| No returns address given, or an unexplained one overseas | Postage to return an item will be costly and a refund hard to come by | Make sure you have read the returns policy in full |
| Countdowns, pop-ups and other pressure from the website | Salesmanship of the manipulative kind | Be calm, research the seller and shut the page |
Check The Seller Before You Buy
It is all the more important to vet a seller if the online shop is unfamiliar. An ABN does not guarantee good service from a business, so while registration is a check worth making, it is no sure thing.
Put the seller’s name or Australian Business Number into ABN Lookup. See if the registered name is the same as the one on the invoice, the website and the party receiving payment. Any discrepancy should be put to the seller before you go any further.
Verify Business Details
See if there is consistency in the trading name, the contact and delivery policies and where returns are sent. Do the search yourself rather than follow the links the seller puts in front of you.
Australian branding can be copied. One might see an Australian flag, spelling or a local suburb name on a site and yet the operation is overseas. That is not to say they are dishonest but you will find it harder to deal with refunds, warranties and return postage.
For those in Adelaide or elsewhere, going with a digital store or other Australian retailer of standing is easier to verify; they tend to have transparent payment options and customer support to back up their published details. What counts is the evidence, not the web address.
Read Policies Before Checkout
Before you put in your card information, familiarise yourself with the privacy, warranty, refund and delivery policies. You want to know the practicalities: who covers return postage, time frames for a refund, exclusions on sale goods and the like for disputes.
The returns process is often misunderstood. There is an assumption that the law in Australia means an instant refund. While consumer protections exist, an anonymous or foreign seller can make enforcement of them a chore. It is less trouble to be prevented from buying than to pursue a merchant who has vanished.
Use Safer Payment Methods
How you pay will determine your level of protection when a purchase goes wrong. A secure online payment helps but will not make a dodgy seller any safer.
When called for, opt for a credit card or something like PayPal which has a dispute process. Be quick to act over an unauthorised transaction or non-delivery after reading the provider’s terms.
Hard-To-Recover Payments
Transfers are easy to fall for because once the funds are gone from your account they are not easily put back. Exercise caution if a seller is having none of your cards and pressing for a direct transfer to a personal account.
Unless you are prepared for the possibility of being unable to get your money back, do not use cryptocurrency or gift cards to pay an online retailer. You will not be asked to recite a code from a gift card to “unlock” a parcel by a legitimate concern.
Keep an eye on your bank statement and notifications. An odd small charge may be a precursor to something more fraudulent. Put in a call to your bank right away.
Protect Your Personal Information
Your email alone may not give a scammer access to your bank, but it is a tool for them to send off fake delivery notices and password reset requests to target you. So it is worth protecting your account even in the absence of a purchase.
Every shopping account should have its own strong password; a manager is handy to keep track of them and you have had enough of “Summer2020!”.
Secure Your Accounts And Devices
Enable multi-factor authentication on your banking, email and shopping accounts where you can. Make sure your operating system, browser and antivirus are current.
Do your shopping on your device and a network you can trust. Public Wi-Fi at an airport or hotel foyer is not the place to be entering payment details, especially if you are not sure of the network. And do not leave your card details saved on a computer others have access to.
Give only the personal information a retailer requires for payment and delivery, not your entire identity history or a one-time security code. A real support person will never put in a request for your banking password.
Safely Shopping On Social Media
The success of a social media scam is down to the way it marries a well-known platform with an offer that has you act in a hurry. You may see an advert next to your friends’ posts and find yourself at a counterfeit outlet, a subscription you did not want or a fake store.
Then there are marketplaces where the legitimate and the fraudulent rub shoulders. Do not be put at ease by a profile with a long history; accounts are easily copied or hacked.
Do Your Due Diligence
Before you message a seller, have a look at his profile and account history. See if the comments are what they seem. New accounts are cause for caution as are product photos that have been lifted from elsewhere, disabled comments or a seller who is all too eager to take the discussion to a private app.
Where you can, conduct payments and keep your correspondence on the platform. Should a link be sent over, put the address of the official platform in your browser rather than clicking the one in the message. And do not give up a login code on the word of someone saying it is required to finalise a purchase.
Time is short? Put your effort into confirming the seller, looking at independent reviews, the returns address and any payment protection. If one of those four is absent, walk away. Your bank balance will thank you and the parcel can wait.
When You Have Been Scammed
There is no need for embarrassment, act without delay. A prompt notification to your bank or payment provider may open up options that scammers would prefer you left unexplored.
Under no circumstances should you part with more money to “free” a refund, cover a customs fee or make good your loss. Recovery scammers are only too happy to prey on those already defrauded.
Putting A Stop To It
- Put in a call to your card company, PayPal or bank right away via their website or app. Inquire as to whether the payment can be put in dispute or otherwise investigated.
- You will want to change the password on the compromised account and any other where you have used the same one. Make sure multi-factor authentication is in place and end other sessions.
- Gather your evidence: screenshots, URLs, transaction references, receipts and the like. Make a record of the conversation before deleting it.
- Put in a report to Scamwatch and, if the matter involves identity theft or abuse of a serious nature, the eSafety Commissioner.
Have you handed over sensitive information or documents? Find out from your bank what it would have you do and watch your accounts for anything untoward. The issuer of the document may also need to be contacted.
Reporting A Shopping Scam
It will not put the money in your pocket but reporting allows the authorities to put together a picture of the domains, payment methods and patterns in use across Australia, and in so doing shield others from the same fate.
Use the ACCC and National Anti-Scam Centre’s Scamwatch service and follow their lead. Be accurate in the details you give. Give them the date, the sum in AUD, how you paid, the seller and website, phone and email numbers. Tell them what transpired after you paid, if the item was a fake and if a refund was forthcoming. You can also put in a word with your bank and the marketplace in question.
Keep Reporting Details Accurate
It will not put the money in your pocket but reporting allows the authorities to put together a picture of the domains, payment methods and patterns in use across Australia, and in so doing shield others from the same fate.
For advice on online safety in general there is Cyber.gov.au. Moneysmart is useful for financial protection and scam awareness. The eSafety Commissioner is the body to approach in cases of image-based or other harmful digital behaviour.
Some FAQs
We put together some brief, practical answers to the concerns that tend to surface following a dubious purchase or an unsettling message. That said, the prudent thing is to get in touch with the provider by an official route.
Is My Bank Account At Risk From A Scammer With My Email?
Not normally. But if he has your password, security answers, a one-time code or access to your device the equation changes. A strong unique password and a secure network are advisable. Report any odd activity to your bank.
Ten Tips For The Safe Online Shopper
From checking the domain and the seller to using ABN Lookup, reading the small print on returns and shunning unrealistic discounts. Also compare prices, use a secure form of payment, hold back on direct transfers to a stranger and safeguard your personal data. These will serve to ward off most of the scams Australian shoppers come across.
Five Ways To Be Protected
Update your devices, verify links, limit the amount of personal information on display, have multi-factor authentication and passwords to yourself. As a sixth, go to an organisation’s website to contact them, not a number or link in an unsolicited message.
Prevention
Resist the urge to let a timer, a celebrity or a rock-bottom price decide for you. Verify the seller on your own terms and opt for a payment method that has your back in a dispute.
Any Chance Of A Refund?
In some cases. A chargeback or dispute can be arranged with your bank or PayPal, though the outcome is not assured and hinges on the rules of the provider and the evidence at hand. Report it in any event.
Make Caution Habitual
A few simple steps: pause, check, verify and then pay. Do not consider a misspelled domain name or a request for a bank transfer a minor irritation, nor the pressure of social media.
Nicholas Fairchild would tell you this: when a deal is too good to be true or has an air of secrecy and haste about it, let it be. One does not recover from an online scam with the same ease as one forgets a bargain.
