The saying “if it sounds too good to be true it probably is” seems more pertinent than ever as experts warn of a huge rise in online shopping scams costing Australians millions of dollars.
Shopping scams were the most reported scam type involving financial loss so far this year, according to the National Anti-Scam Centre, with 19,662 reports.
Of that total, 9628 resulted in $8.6 million in losses – up 19 per cent on losses reported over the same period in 2024.
The centre’s warning is timely as Black Friday sales get into full swing, with shoppers about to splurge billions in what is now considered the biggest retail event of the year.
“Scammers love Black Friday sales, too, because they know shoppers are looking for bargains and they rely on creating urgency and pressure that can come with a busy shopping period,” said Australian Competition and Consumer Commission deputy chair Catriona Lowe.
While Black Friday started out as a discounted single shopping day on the Friday after Thanksgiving in the United States, it has now become a weeks-long sale event that has spread across the world.
Research published this month by the Australian Retailers Association and Roy Morgan predicted that Australians will this year spend a record $6.8 billion over the four days from November 28 to December 1.
That’s an increase of 4 per cent on 2024, with average planned spending per person of just over $800.
But while there are plenty of genuine discounts to be found, Lowe urged shoppers to take their time, check the legitimacy of websites and offers, and be cautious about sharing personal or financial information online.
“A few simple checks before making a purchase can make all the difference in avoiding a scam and keeping your money safe,” she said.
Social media accounts are increasingly being used to target victims. Photo: Pexels
The advice was echoed by Monash University cybersecurity expert Monica Whitty, who said people shouldn’t feel rushed into making a purchase just because they saw a sale.
“My research shows that victims of online consumer scams tend to score high on impulsivity measures…. Criminals rely on shoppers making quick, impulsive decisions without checking the details.”
Whitty, a professor in Monash’s Department of Software Systems and Cybersecurity, also advised shoppers to avoid making purchases over public Wi-Fi. She said itwasn’t secure and could expose personal and financial details.
Whitty recommended that people shop only through trusted sites and retailers.
“If you receive an email promoting a sale, avoid clicking any links as it may be a phishing attempt,” she said.
“Instead, search for the business independently and check the website directly. Make sure there is a padlock icon in the URL bar – without it, the site is not secure.
“Compare the product across other trusted retailers to verify whether the sale is genuine, and always make purchases using secure payment methods such as a credit card or PayPal.”
The National Anti-Spam Centre, established in 2023 and part of consumer watchdog the ACCC, has also warned people to be alert for scams more broadly after Australians reported total losses of nearly $260 million to its ScamWatch service in the first nine months of this year.
This represented a 16 per cent increase in losses, despite the fact that the number of reports decreased by 20 per cent to 159,319.
The centre said online content – such as fake websites, ads, social media and mobile apps – was how most scammers made initial contact.
It reported that social media accounts, “particularly on Facebook and Instagram”, are increasingly being used by scammers to target victims’ personal networks. After gaining access, scammers impersonate the account holder to promote fake ticket sales and other scams such as “fire sales” and investment schemes.
“We continue to urge Australians to verify who they are communicating with online, as scammers leverage trusted relationships and social platforms to manipulate people into handing over money and personal information,” Lowe said.
Any suspicious activity can be reported on the ScamWatch website, which also has tips about red flags and what to do if you’ve been scammed.
The ACCC also recently put genuine retailers on notice that it will be watching for any kind of dodgy sales tactics that could be used to mislead shoppers around Black Friday – including inaccurate price comparisons, fine-print disclaimers and advertising sales as “store-wide” when only some items are discounted.
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