Friday, 24 November 2023

Scammers are taking advantage of Black Friday sales, but there are steps you can take to avoid them.

 Extract from ABC News

The ACCC is cautioning consumers to be careful of scam websites advertising Black Friday sales.

Australian shoppers are being warned to watch out on Black Friday, as scammers are mimicking popular retailers online.

Websites for mostly fashion and footwear brands are being sophisticatedly replicated to trick customers into thinking they're making a genuine purchase. 

The National Anti-Scam Centre has heard reports of nearly 3,000 fake websites this year alone, resulting in more than $500,000 in losses. 

Three women walk past a Black Friday sale sign in a shop window.
Australians are expected to spend more than $6 billion in Black Friday sales this year.(ABC News: John Gunn)

Black Friday, which originated in the United States as a way to snag a deal after Thanksgiving, is more popular than ever in Australia.

With its sister event Cyber Monday, Roy Morgan anticipates shoppers to drop $6.36 billion over the four-day period — presenting rife opportunity for scammers to take advantage. 

Here's how to avoid falling victim to a scam and shop savvy during the holiday sale event.  

What is the scam?

Andrew Williams, chief executive of the Australian Communications Consumer Action Network, said he's expecting to see a number of scams over the coming days, which will prove to be a "real challenge" for consumers.

"With Black Friday, most of the sales are undertaken online, we're going to see an increase in fake online stores," Mr Williams said.

"Scams are taking place over Black Friday and Cyber Monday because that's when more and more Australians are expected to be ... doing their online shopping.

"So [scammers] are just taking advantage of more shoppers being online during this period."

He said the fake websites can come from any source — from a hyperlink in a text message or via social media.

Andrew Williams in a striped shirt and black blazer
Andrew Williams said shoppers should take care before clicking links shared with them.(Supplied)

But recently, scammers are paying for their dupes to appear high on Google search lists too.

"So if a site is at the top of your Google search, that may not necessarily be the legitimate site," Mr Williams said.

"Consumers really need to take care before they click on the link, and make sure that they are purchasing from a legitimate site."

How are shoppers being targeted?

The scam itself is not new, but the National Anti-Scam Centre has seen an increasing number of reports of fake online stores of late.

"We are seeing an increase in the number [of scams], increasing losses and an increase in sophistication in this type of scam," Deputy Chair of the Australian Competition and Consumer Commission (ACCC) Catriona Lowe said.

Once on the site, consumers are led through the entire online shopping experience, right through to check out.

Ms Lowe said that the item will then never turn up, or a cheap knock off will be delivered instead.

"So consumers have in effect done off their dough, and instead of buying something from a store, they've given their money to scammers."

What should you look out for?

Ms Lowe recommends consumers read independent reviews by consumers who have already been caught out by fake sites.

She said if something on a website doesn't look right, from a typo in the URL or an off picture, it might be a red flag. 

"Consumers might observe subtle differences between the fake site and the real thing, but that will really depend on the extent to which consumers are familiar with what the real site looks like."

Catriona Lowe in black glasses and a colourful jacket and scarf
Catriona Lowe says the scams are getting more sophisticated and reaching more people.(Supplied)

While Black Friday is known for helping shoppers catch a bargain, Mr Williams said if the discount looks too good to be true — it probably is.

"We're seeing some significantly discounted luxury products come through on these scam sites," he said.

"If it's hundreds of dollars cheaper than what it should be, then that's a good sign that it's probably a scam."

He said scammers will also try and pressure shoppers into acting on a deal under the illusion it will only be offered for a limited time.

"But you don't need to rush, think about what you're clicking on and ask yourself if it's a website that could be fake."

How can you protect yourself?

Ms Lowe acknowledged that cost of living pressures may make fake sites look appealing.

"It is really enticing to look to the sales to perhaps snag that bargain for Christmas presents," she said.

"But we are really urging consumers to do their homework and make sure that what they're getting is the real deal."

On the flip side, the best way to check if a Black Friday sale is legitimate is to take a step back first.

"Don't click on a link in an email or a text or anything like that," Mr Williams said, encouraging shoppers to go to the parent site through an independent search. 

"The best form of prevention is really just be aware and alert to scams."

A person on their laptop on a clothing shop website that has sales on
Experts said taking a pause before checking out might spare you a Black Friday scam.(Freepik: Freepik)

Ms Lowe said using PayPal, or a credit or debit account when paying offers more options for getting money back if the goods don't turn up.

This is opposed to bank transfer or using digital currency where "once it''s gone, it's gone".

Mr Williams added that considering a second credit card with a low credit limit that is used just for online shopping can help when checking out.

"That way, if you are impacted then you can really minimise any loss you might incur," he said.

If money is withdrawn but no goods show up, or a dupe shows up on your door, then time is of the essence.

"If you do feel that something is wrong, trust your gut, get in touch with your bank as soon as possible and report the matter to [National Anti-Scam Centre's] Scamwatch," Ms Lowe said.

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