Say no to scams: Make your shopping secure this holiday season

The holiday sales season is well and truly upon us and with it comes scammers in search of unwitting customers, Debbie Wine, CMO of Zip Co Australia shares what to look out for so you don’t fall prey.

With Black Friday sales kicking off last week, the holiday shopping season is now in full swing as customers muck in to get all of their Christmas shopping done at a discount. Zip data found that this Black Friday, Aussie shoppers increased their spending by 52 per cent from the previous four weeks, spending big on items ranging from clothing to electronics and home appliances – and with Christmas just around the corner, we can expect to see this uptick in spending continue, particularly online.

Be wary of online scams

COVID-19 has no doubt shifted the way we shop. Zip is seeing more and more customers turn to the convenience and safety of shopping from their phones, with 65 pr cent of Zip transactions being completed online this Black Friday. But as the e-commerce landscape continues to grow, so too does the threat of online scams and fraud as cybercriminals take advantage of the increased digital foot traffic.

With that in mind, businesses and consumers alike need to take precautions to limit the threat this holiday season. Here, I share insights on how shoppers and retailers can identify and protect themselves from online scams and fraud.

Spotting the fakes

While customers are not likely to fall for the ‘Nigerian prince needing money’ line anymore, when it comes to online scams such as imposter stores and phishing, criminals are getting smarter. During this busy time of the year, cybercriminals are taking advantage of people who are rushing to do their Christmas shopping or those who are simply excited to get a good deal.

Some of the biggest scams are fake emails that go “phishing” for your personal information. While phishing typically comes through your email, scammers also set up websites with deals that look too good to be true.  They may look identical to the original, but will actually cost you time, money and result in a call to your bank searching for recovered funds. Phishing attempts may even lead to identity theft, where fraudsters open other accounts in your name or even apply for loans.

To avoid this, do your research. Read independent reviews for websites and look out for misspelled words, brand new social media accounts or other key indicators that something is off.

A good rule of thumb – especially when it comes to third-party resellers – is the old adage, if it looks too good to be true, it probably is. It’s unlikely that Louis Vuitton is selling items on GENUINE-RESELL.com for a fraction of the price.

Delivery text messages asking users to pay for shipping or download fake apps are becoming more sophisticated as well, but it’s important to note that Australia Post or other parcel delivery services will never contact you via call, email or text to ask for your credit card or personal details.

The biggest tip off when it comes to scams is the manner of payment. Triple check that the payment platform they’ve asked you to use is genuine, and be cautious of bank transfers or direct money orders.

Splurging safely – the best ways to shop securely online

When it comes to online shopping, the best tool at shoppers’ disposal is information and secure payment options. Information is power when it comes to avoiding scams. Never click on links in unsolicited emails or texts, don’t act on calls from parties asking you to open accounts, and update the security protections on your computers and mobile devices. Stay on top of scams by visiting the Australian Government’s Scamwatch website.

While it helps to know the warning signs, investing in a strong payment offering – and not just relying on the bank – puts a stronger layer of protection between you and the bad guys.

To avoid entering your credit card details directly into the websites, look into alternative payment options. Alternative payment provider Zip has inbuilt security, so your information is encrypted and will never see the light of day. Zip uses biometric or facial recognition to prove your identity. Zip has also created single-use cards for customers, meaning you can use a card that will then expire the second you use it, so no information can be stolen unlike traditional debit and credit cards – it’s one and done!

By investing time and energy in your online shopping endeavours, you can secure gifts in time for Christmas and also look after your financial security. While safe digital shopping methods might not protect users from that cheeky 30 per cent off sale, at least shoppers can rest assured that they’re secure from criminal activity.