What’s Happening?
As Australians gear up for festive season shopping, new research from PayPal highlights significant risks.
Nearly 30% of Australians have visited fake retail sites, with Gen Z being disproportionately targeted.
This comes as 91% of Australians plan to buy at least one gift online this year, creating opportunities for scammers to exploit the surge in digital sales.
Why It Matters?
Online shopping offers convenience but exposes consumers to fraud.
In 2023, 3,000 fake websites were reported, resulting in over $500,000 in losses for Australian shoppers.
Dan Grant, Consumer Shopping Expert at PayPal Australia, warns:
“Slow down, use trusted payment methods and always trust your instincts – if a deal looks too good to be true, it probably is.”
With participation in holiday sales expected like Black Friday and Boxing Day sales to reach record levels, shoppers must stay vigilant to avoid falling victim to scams.
Local Impact
Queensland’s younger shoppers, particularly Gen Z, are among the most vulnerable to fraud.
Research shows 44% of Gen Z Australians have encountered fake websites, significantly above the national average of 30%.
Fraudsters commonly target this group through phishing emails, scam texts, and social media ads.
Additionally, 51% of Gen Z use unsecured public Wi-Fi for online shopping, further increasing their exposure to risks.
By the Numbers
- 65% of Australians plan to participate in year-end sales, with 50% shopping Black Friday deals.
- 91% of Australians have been contacted by fraudsters, with scam emails (77%), calls (72%), and texts (71%) being the most common methods.
- Among Gen Z, 70% have received scam emails, while 67% have received scam texts.
Zoom In
Scammers exploit the urgency of online sales using tactics like countdown timers and “limited-time offers.”
Fake websites are often poorly designed, with unsecured payment methods, misspelled content, and no locked URL, all of which are red flags for shoppers.
Dan Grant highlights the importance of security:
“Look out for signs of fake websites, including poor spelling and grammar, a lack of contact information along with no physical address, no locked URL, and limited or no secure payment options, such as PayPal.”
To protect against scams, PayPal advises shoppers to:
- Avoid public Wi-Fi and use secure networks for transactions.
- Opt for payment methods like PayPal, which offer Buyer Protection.
- Enable two-factor authentication to add an extra layer of account security.
Zoom Out
The risks associated with eCommerce extend beyond the holiday season.
With 79% of Australians more concerned about personal data security than they were last year, and 74% abandoning online purchases due to security concerns, safe shopping practices are more important than ever.
What to Look For Next?
As the festive season approaches, Australians are encouraged to stay informed about scams via www.scamwatch.gov.au and www.esafety.gov.au.
Tools like PayPal’s Buyer Protection offer shoppers confidence and security during online transactions.
Australians can enjoy the convenience of online shopping while safeguarding against fraud by following expert advice and staying alert.
Stay safe, shop smart, and celebrate stress-free!
