Shopping online? Protect yourself from scams with these simple tips

As cost of living pressures force more people to seek bargains online, Aussies are being warned to stay vigilant against scams while shopping online.

In 2024, 17.08 million Australians made monthly online purchases, and it’s expected this number will increase over the next five years.

Scammers are exploiting this growing trend by posing as well-known, trusted businesses or creating fake websites and profiles on legitimate retailer sites, offering products or services at discounted prices that seem too good to be true.

Matt Hannan, HSBC Australia’s Head of Fraud Management, highlights that “these are sophisticated scams, as the product and services on offer look very convincing.”

“Scammers will use fake ads, fake reviews, and stolen logos to make their products look convincing. If it’s too good to be true, it probably is,” Hannan added.

Hannan advises the public to be on the lookout for the following red flags when shopping online:

Be wary of phishing emails and texts
Beware of phishing emails offering “limited time offers.” Double-check the sender’s email address for any strange letters or symbols, and never click links or download attachments from unknown senders.

Shop only on trusted websites
Stick to familiar, reputable retailers you’ve used before or large online marketplaces. Scammers often create fake websites that look legitimate but are only meant to capture your information or payment details. There are a few easy ways to check if you’re dealing with a legitimate merchant, for example search their business details on ABN look up and check if the business has a more established website presence elsewhere.

Avoid too-good-to-be-true deals
Scammers use ultra-low prices to lure in unsuspecting shoppers. Always compare prices on multiple websites to get a sense of what is reasonable.

Beware of fake customer support
If you run into an issue, go directly to the retailer’s official website for support. Scammers often set up fake support numbers and profiles, especially during peak shopping times.

“If you think you’ve been scammed, contact your bank immediately using the contact details on their website,” Hannan said.

The warning comes after a recent report found that while Aussies are becoming more skilled at spotting online scams, anti-scam and banking groups warn that scammers are rapidly evolving their tactics, with losses still totalling $2 billion.

While the amount lost to scams remains high, it dropped by $700 million in 2024, down 25.9 per cent compared to the previous year, according to the National Anti-Scam Centre’s latest report. The number of scam reports also decreased by 18 per cent, from 601,803 to 494,732 over the same period.

Authorities are cautiously optimistic, with Australian Consumer and Competition Commission (ACCC) deputy chair Catriona Lowe suggesting that combined efforts across industries, governments, and communities are starting to make a difference.

“Scammers are sophisticated and motivated criminals, and we can expect them to innovate even as we succeed in strengthening our defences,” Lowe said.

“The impact on scam victims is all too often life changing, with negative effects on mental health and wellbeing.”

Despite recent progress in reducing scam activity, Lowe noted a worrying rise in scam losses during the final months of 2024.

Shopping scams were the most common, with Australians losing $9.8 million from 10,022 reports in 2024, a 24.2 per cent decrease in reports from 2023.

Investment scams topped the list when it came to total amount lost at $192.3 million, but that has also decreased by 34 per cent from 2023.

Email was the most frequent contact method, with 90,819 reports but only 3459 people reported losing money.

In contrast, social media scams led to more people losing money, with 7724 reports and a loss of $69.4 million in 2024, an increase from 7706 reports in 2023.

Phone scams had the highest overall losses with $107.2 million lost across 2179 reports.