With the holiday season fast approaching, shoppers are getting ready for their annual Christmas shopping spree. It’s the time of year when crowds gather at malls, and online marketplaces see increased traffic as people look for the best gifts. But with all the festive excitement, there's also a surge of scams targeting unsuspecting consumers. Experts are urging shoppers to be more vigilant than ever against online fraud, as scams are on the rise during this busy shopping season.
Recent data from WA ScamNet highlights the urgency of this issue. According to their reports, nearly 400 shoppers from Western Australia fell victim to online scams just this year, losing over $481,000. Among these, over $308,628 was lost by 277 people shopping through online marketplaces. Timing couldn't be worse, with the festive season likely to push these figures even higher. Consumer Protection Commissioner Trish Blake has indicated her concerns, stating, “Online shopping scams are expected to soar over the holiday period.”
These scams often manifest themselves through fake listings offering sought-after items at unbelievably low prices. Scammers utilize counterfeit profiles and even hijack real social media accounts to trick consumers, luring them with promises of easy deals. Ms. Blake has advised, "Maintaining healthy skepticism when using these platforms can help keep you out of harm's way." She urges shoppers to carefully evaluate sellers, check their activity and ratings on the marketplace, and perform internet searches for seller names and photos.
One of the most common tactics includes creating illegitimate websites mimicking those of popular retailers, selling items at significantly reduced prices. Blake warns, “Stay away from websites accepting only bank transfers or cryptocurrencies, as recovering such funds is nearly impossible.” Instead, she recommends using secure payment options like credit cards or PayPal, which provide stronger consumer protections.
Meanwhile, across the UK, TSB has issued alerts about prevalent purchase scams as shoppers gear up for Black Friday and Christmas. Analysis from the bank points to more than half—55%—of authorized push payment fraud cases this year being attributed to such scams. Popular items targeted by scammers include tickets for concerts and football matches, clothing, game consoles, and even cars.
TSB's analysis reflects how many of these scams typically emerge from social media. The new rules installed by the Payment Systems Regulator (PSR) mandate banks to reimburse victims of authorized push payment fraud, putting more responsibility on providers to protect their customers during this susceptible time. Under the new regulations, reimbursements can go up to £85,000, with some banks like TSB pledging to waive the excess fees normally applied to fraud cases.
But amid the grim statistics, there are ways consumers can protect themselves. TSB's director of customer support, Nicola Bannister, emphasizes the importance of sticking to reputable websites: “At this time of year, we’re all shopping online more than ever—but it’s important to be wary of scams on social media platforms, as crooks are listing items hat simply don’t exist.” Bannister stresses buyers should only make online purchases if they can view items first, preventing issues before they happen.
The available data suggests it’s not just online shopping where consumers need to be cautious. Many cases of fraud emerge from seemingly innocuous interactions or purchases. TSB reported shocking cases where individuals lost funds over small-ticket items. For example, one victim thought they had purchased concert tickets for £50 only to later discover the seller had blocked them after getting their payment. Such experiences highlight the need for caution.
The holiday season, though joyous, can also attract scammers fueled by consumers’ eagerness to find the perfect gifts. John Lowe, from MoneyDoctors.ie, has provided insight for those wanting to safeguard their financial wellbeing this Christmas. He suggests ten preventative measures to thwart fraud:
- Always research sellers before making purchases.
- Use secure payment methods with built-in fraud protections.
- Avoid deals too good to be true—often, they are.
- Be wary of links sent via email or social media.
- Keep your software updated to protect against security vulnerabilities.
- Trust your instincts—if something feels off, don’t proceed.
- Double-check the legitimacy of any new websites before buying.
- Keep personal information private, particularly on social media.
- Report suspicious activity to your bank immediately.
- Educate friends and family, especially the elderly or non-technical members, about the importance of scam awareness.
To draw the curtain on this topic, as the hustle and bustle of Christmas shopping reaches its peak, it’s imperative for shoppers to stay alert. With effective awareness and education, consumers can keep their holiday spirit intact without falling prey to criminals eager to exploit the festive rush. A unified caution can mitigate frustrations and losses, ensuring this year’s shopping experience is memorable for all the right reasons.
