Online shopping has fast become the way to shop. And what’s not to love? More variety, often cheaper prices and no pushy sales people armed with fake compliments. In fact, in 2018 alone, Aussies spent a whopping $21.3 billion online (that’s a lot of ASOS).
But as shoppers move online, so do the scams. Unfortunately, scammers can use the anonymous nature of the internet to take advantage of unsuspecting customers. They set up fake websites that look like genuine online retail stores and often sell your favourite brands at a cheaper price.
So, how do you know if it’s the real deal? As a rule of thumb, if it’s too good to be true, in the online world it probably is. To help you shop safely online, here are some things to look out for:
Lack of payment options
All trusted online sellers and stores should offer secure payment options like PayPal, SecurePay, Stripe, Square, Checkout by Amazon or Google Pay (there are more, but these are some of the most popular). If you haven’t heard of the payment option, a quick Google will help you determine if it’s safe or not.
Also, if a seller asks you to transfer funds directly, be cautious – it could be a scam.
Extremely low prices
We all love a bargain. There’s nothing more satisfying than saving a few bucks when it comes to shopping. However, if an item is advertised at a price that’s ridiculously cheap and much lower than other online stores, it could be a fake trader. Alternatively, the product may be a copy, like a fake pair of Ray Bans or Nike sneakers.
Social media based stores
Instagram and Facebook can be great platforms to sell on. But be wary; they’re also a scammer’s paradise. If the store is new, its prices are very low, and there is limited information about the company, do your research – search for reviews and the store’s history – because it may not be a legitimate business.
In 2018, Aussies lost $3,278,776 to online scams. But it’s not all doom and gloom. Here’s how to shop safer online:
1. Use a low-limit credit card
The ME Frank credit card puts your safety first. If you suspect suspicious activity, you can put a temporary stop on your card instantly via the app or online banking.
For further peace of mind, if you do fall victim to an online scam, ME’s got your back with Mastercard’s™ Zero Liability, which won’t hold you responsible for unauthorised transactions made online.
If you’re with another bank or financial institution, your credit card will most likely offer similar protection – but it’s worth checking just in case.
2. Get a card specifically for online shopping
Having a separate debit card specifically for online shopping not only gives you more clarity and control over what you spend. It also means if you do get scammed, it won’t affect your other bank accounts and cards.
And to minimise any risk you can simply transfer the money you need to cover the purchase onto the card.
3. Use familiar websites
Just like walking on main roads and avoiding dark laneways, try and shop online using popular websites only. Sites like Amazon and ASOS are generally very safe because they’re so regularly reviewed and used.
4. Only shop when there’s a lock
Before you make a purchase, check that the site has SSL (secure sockets layer) encryption installed. The URL for the site should start with HTTPS (not just HTTP) and an icon of a padlock should appear in the address bar.
So remember: if there’s no lock, do not shop – as the page is not secure.
5. Check statements regularly
Sounds obvious, but many of us only check our statements once a month – or even quarterly. By scanning your statements (and accounts) often, you’ll notice fraudulent charges sooner and help prevent further unauthorised activity.
While scammers may be getting savvier (and more annoying), fortunately, online retailers and financial institutions (like ME) are doing more to help avoid and rectify these kinds of security breaches.
Mastercard® is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated. Mastercard Zero Liability protection is subject to meeting Mastercard's conditions. See here for full details of the MasterCard Zero Liability policy and conditions.
This article is prepared based on general information. It does not take into account individual financial objectives or needs and is not financial product advice.