Avoid the scams and practice safe online shopping

Buying online can take the hassle out of Christmas shopping – but it pays to be cautious before handing over your hard-earned money.

As the festive shopping frenzy kicks in, thousands of South Australians will turn to the internet to purchase gifts for friends and family. But, with the average number of transactions multiplying by up to five times in the run-up to Christmas, do we need to be more cautious about doing our shopping online?

According to BankSA head of fraud Ben Young, the answer is yes – and no. It all depends on who you’re buying from – and your method of payment.

“Our bank will be processing around 700 transactions per second during the festive peak but credit or debit card shopping online is very safe and is actually getting safer,” he says. “The official card fraud rate is around five cents in every $100 so it’s a very small proportion of spend.

“Australian banks run the most sophisticated fraud detection systems in the world. When consumers shop online with a Visa card or a MasterCard they are afforded a whole bunch of protections. Fraud can happen but consumers would rarely ever be liable for that loss.”

Peer-to-peer payments, however – think Facebook Marketplace, Gumtree and others – should be treated with more caution. “A lot of the scams do pop up in that space where the same protections aren’t in place,” Young says. “When it’s a peer-to-peer seller, you negotiate a price and transfer money directly to them, usually from your bank account so you’re not using a card. You may get a bargain but you also may get scammed.”

Common scams cover everything from puppy sales to luxury clothing brands, shoes, jewellery and more. Then there are more obscure items such as shipping containers and farm equipment. “I saw one the other week for these sort of obscure types of fluffy cows that are in demand,” Young says.

BankSA head of fraud Ben Young.

And buyers can expect the number of scams to ramp up around Christmas as demand outstrips supply for popular products. “Anything that’s really short in supply, you can be sure there’ll be a peer-to-peer scam about it,” Young says. “That’s the thing around Christmas because you do get runs on things where suddenly something becomes hard to find, people are running around and can’t find it in any shop. And then suddenly some peer-to-peer seller has it, it’s actually not even that expensive, it’s just what you wanted and it’s the one that sold out everywhere else.

“That should be ringing huge alarm bells. You need to be really sure who you’re getting it from.”

Another tip is never to buy goods sight unseen. “Ask the seller to show you a video of the item,” Young advises. “People can fake photos easily but it’s very hard to fake a real streaming video.”

A safe way to protect your money is to use a payment method that’s more secure. If a bank card transaction isn’t viable, consider using systems like PayID which provide an extra layer of security.

“PayID is like an alias for a bank account and most major banks have it,” Young says. “Instead of giving someone your BSB and account number, systems such as PayID let you provide less sensitive information such as an email address, phone number or ABN. But you should always remember to do your own research on whether these systems suit your circumstances.”

If you do fall victim to a scam, calling your bank immediately should be your first order of business. “The banks will always try to stop payments if they’re still in flight and, even if the funds have already left, they will try to recall funds and will help make records to make sure other people don’t fall for the same scam,” Young says.

“Scams do get under-reported as some people are too embarrassed to admit it to their loved ones or their bank. You have to fight that because time is everything. If a scam has only happened a few minutes ago, you are more likely to get the money back but the longer you leave it, the less likely a recall of funds is possible. So you have to fight that embarrassment and call the bank straight away.”

STAY ALERT

Three scams to watch out for over the festive period.

Parcel delivery scams – An SMS asking for an extra tax payment before delivery in order to acquire your card details. “The fact that so many people are expecting packages makes people fall for that, especially if you get to a desperate stage in those last few days before Christmas. If your shopping hasn’t arrived, you might be more inclined to wonder where the tracking is.”

WhatsApp Hi Mum – Victims receive a WhatsApp message by a scammer posing as a family member or friend claiming to have lost or damaged their phone and are making contact from a new number. They will ask for money to be sent urgently. “They just play the numbers – statistically there will be someone whose child is travelling or might be in a tight spot. You get someone panicked that their child might be in danger and a lot of people will send money, sometimes quite large amounts, without really thinking it through.”

Linkt toll road – An SMS regarding a failed payment for a toll charge requesting the receiver settle the outstanding balance. “This one is very popular – a broad brush scam broadcasting millions of SMS but all they need is a small subset of people who will click on the link and hand over their personal details or their card details.” While South Australia doesn’t have toll roads, beware if travelling interstate over the Christmas holiday period and you’re unfamiliar with how these toll roads work.

It’s time to Celebrate SA and support South Australian businesses these holidays. Proudly brought to you by BankSA. #WeBackSA