Scamwatch is urging consumers to take caution when shopping online after figures from the Australian Competition and Consumer Commission (ACCC) reveal that losses to scams have increased by 42 per cent compared to last year.

Over 12,000 reports of online shopping scams have been received by Scamwatch this year, with almost $7 million reported in losses.

“More people have been shopping online this year due to COVID-19 restrictions”, reports Delia Rickard, Deputy Chair of the ACCC. “[Scammers] post fake ads on classified websites, often claiming they are travelling and someone else will deliver the goods, but the item never arrives, and the victim can no longer contact the seller.

Of these scams, used vehicle fraud accounted for $808,571 of losses, the second-highest (in dollar amount) form of fraud behind fake ads for pets.

“Although consumers will see some well-priced cars listed by private sellers on social media, they need to be aware that there are risks compared to buying from a licensed dealer,” said James Voortman, CEO of the Australian Automotive Dealers Association.

“Buying from a car dealer provides consumers with statutory warranties and cooling-off periods as required by state law. You can also have peace of mind that used vehicles purchased from a dealer have a clear title guarantee, which is a written notice ensuring the consumer has not bought a car which is stolen or has money owing on it,” Voortman added. “You simply do not have these protections when buying privately from social media.”

Further to vehicles, pets and consumer goods such as shoes, phones, computers, and toys, continue to be high points for fraud.

Classified websites such as Facebook Marketplace and Gumtree have experienced a 60 per cent increase in losses this year, amounting to $4.5 million.

“Watch out for popular products being sold at prices much lower than on other websites and sellers requesting payment through direct transfer or cryptocurrency,” stated Rickard.

“Take the time to consider who you are dealing with and don’t be pressured by special offers.”

“Do your research by checking independent reviews of online stores or the seller’s history on classified websites.”

“If you have been a victim of a scam, contact your bank as soon as possible and contact the platform on which you were scammed to inform them of the circumstances.”

To find out more information, visit scamwatch.gov.au

Source:

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