Online Shopping Scams
Whether it’s shopping for groceries, clothing or luxury items, everything is now just a few clicks away. While this convenience offers many benefits, it also comes with increased risks.
What are online shopping scams?
Online shopping scams involve scammers posing as genuine buyers or sellers with the aim of stealing your money, goods or personal information. These scams are becoming increasingly sophisticated, with scammers creating fake websites or listings to trick you into buying something that doesn’t exist.
Fake buyer online shopping scams
Scammers can pose as potential ‘buyers’ for items you have listed online.
These scams can include the buyers claiming to have paid you or overpaid you and provide fake receipts for the payment. They can pressure you to either send the item before the funds are received or refund the ‘overpaid’ amount. In some instances, scammers can ask you to accept payment via your email PayID and then send you an email with a phishing link to ‘accept’ the payment.
Example
You are selling a pair of shoes on Facebook Marketplace. A buyer sends a receipt for the payment, but no money appears in your account. They claim that there’s a bank delay and ask you to send the shoes while the funds clear. You send the shoes and days later, no payment arrives.
Check the buyer’s profile
Review their profile if they contact you via social media. Limited history or low buyer rating can be a sign of a fake buyer.
Buying an item without viewing
Sometimes there is a logistical issue, however, it can also be a warning sign for a fake buyer, especially for high-value items.
Unusual payment methods
Be cautious if asked to accept payments via email or SMS links. Legitimate bank transfers do not require you to click links to receive funds.
Fake receipts
Scammers can easily create fake receipts to make it appear as though money has been sent.
Verify the payment
Never send an item until funds are visible in your bank account. Always confirm directly with your bank if you are in doubt.
Overpayment
If a buyer sends more than the agreed amount and asks for a refund while the payment hasn’t been received, this is a strong sign of a scam.
Sense of urgency
Scammers often pressure you to act quickly. Do not feel rushed into making decisions.
Fake seller online shopping scams
Scammers may pose as genuine sellers, offering products or services via fake listings. They often insist on a deposit or an upfront payment.
Once you transfer the money, the scammer then disappears and the item never arrives.
Example
You find a lamp on Facebook Marketplace and contact the seller. They claim they’re out of town and ask you to transfer the money while their ‘friend’ delivers it. After sending the payment, the seller stops responding and disappears, and you never receive the lamp.
Check the seller’s profile
Look at how long they’ve been active and their reviews. Limited history or low seller ratings can indicate it’s a scam.
Too good to be true
If an expensive item is listed at a very low price, it’s probably a scam. If something seems too good to be true, it probably is.
Paying upfront
Avoid paying upfront via bank transfer or money order. Once the money is gone, it is difficult to recover it.
Verify in-person
Always try to arrange an in-person meeting to inspect the item you are buying and make sure that it is what the listing has described.
Secure payment alternatives
If you are purchasing something that needs to be shipped, use payment platforms with buyer protection (such as PayPal), which may allow you to recover your funds.
Fake online shopping website scams
Scammers can create convincing fake websites to trick you into making purchases.
Scammers can steal ABNs, logos and even create several fake reviews to convince you that the website is a legitimate retail site. However, once you buy something from these fake sites, your payment details can be compromised and you may never receive the item you purchased.
Example
You find a new luxury resale website with some decent reviews. You find a designer bag at a very low price and buy it immediately. A few weeks pass and you get no confirmation or shipping notification. Eventually the website disappears and you have no way to recover your money.
Don’t rely on website reviews
Scammers can add lots of fake reviews to the website to appear legitimate. Always check independent sources for reviews.
Too good to be true
If the price seems unrealistically low, chances are it is probably a scam.
Unusual payment methods
Be cautious if the site only accepts bank transfers, money orders or other non-secure payment options.
Secure payment platform
Before entering your payment details, make sure the website has a secure payment platform that protects these details from being compromised.
Missing policies
Always review the website’s terms and conditions, privacy policy, dispute resolution, contact details and ‘About Us’ page. If any of this information is missing, do not trust the website.
Online shopping scams can happen to anyone
Online shopping offers convenience, but it is important to stay vigilant.
If you are ever unsure about a purchase or a potential buyer, make sure you pause and take time to question anything that feels unusual. A few extra checks, such as viewing the item in-person, could make the difference in protecting your money and personal information.
Sources
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The information in this communication is general in nature and is intended to raise awareness about common scam tactics and how to avoid them. While the information may assist you in reducing your risk of being impacted by scams and fraud, it does not guarantee protection in any way. Examples are illustrative only and are subject to the assumptions and qualifications disclosed. Whilst care has been taken in preparing the content, no liability is accepted for any errors or omissions in this communication, and/or losses or liabilities arising from any reliance on this communication.