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Shopping online can be easy and convenient, but not all sellers and buyers can be trusted, and many scams are so sophisticated through the use of AI that they can be almost impossible to spot. In this video, you'll learn three steps you can follow to help make your online transactions safer: Stop. Check. Protect.
When buying or selling online, stop and take a moment before giving your money or personal information to anyone. Check to make sure the person or organisation you are dealing with is real. Protect by acting quickly if something feels wrong. By applying Stop, Check and Protect, whenever you buy or sell online, you can help recognise and manage the risk of scams.
There are several red flags to look out for when buying online. Scammers often post fake reviews to entice shoppers to spend their money. Only positive reviews and reviews that provide little detail can be warning signs of a scam. If a seller offers an expensive item at an incredibly low price, that can be a sign of a scam. Another sign is a lack of terms and conditions on the web store's web page or no instructions about how to return or exchange a purchase.
A legitimate Australian seller will also include their ABN, a privacy policy and an acknowledgement of your rights under consumer law. If you go through with the purchase and it is a scam, you might have your money stolen or receive something you don't want instead of the item you paid for. In addition, the scammer will have collected more information about you, such as your name, address, or phone number. A scammer might send you a fake invoice for something you haven't bought and ask you to pay the invoice or a small processing fee. Another warning sign could be the form of payment requested.
You might be asked to pay or accept payment in a complicated way, such as via money order, preloaded or prepaid card, multiple pay IDs or accounts, payments to third parties or to names and businesses you don't recognise. Watch out for messages claiming to be from Australia Post or a courier service. These will say there's an issue with an item being delivered to you, and you can fix it by paying a fee or updating your details. If you're not expecting a delivery, it's almost certainly a scam.
Also, legitimate couriers won't ask for personal details or payment by text, email, or phone. Use their official app or order confirmation link to track parcels or call them directly. Selling old or unwanted items online can be a good way to make a little extra money, but scammers target sellers too. One sign of a scam is when a buyer seems eager to pay top dollar for your expensive item right away, especially without inspecting the item first. Often this too-good-to-be-true buyer is not genuinely interested in your item.
Instead, they're trying to rush you into a scam. The buyer may send you a check that's more than the agreed price. They might also claim they've made too large a payment to your bank by showing you an email confirmation of payment. The scammer will then ask you to repay them the extra amount and any money you pay will be stolen by the scammer. You'll find the email confirmation of payment was fake and that you haven't received any money for the item you are selling. Scammers can quickly make money disappear after they receive it. This makes it almost impossible for you to retrieve stolen funds. If you think you've been scammed of money, contact your bank immediately.
Scammers pretend to be from organisations you know and trust, but there are checks you can do to help ensure you are buying or selling with someone legitimate. Before purchasing from an online store, check the ABN on business.gov.au. Always be wary of deals that are too good to be true, especially if it is from a new store or an account on social media. Check other details, including the company's main website, and whether any invoices you receive have correct details. If there are no contact details on the web store and no physical address for the company, be wary of a scam.
You should also check the web address or URL that appears in your web browser's top search bar. If the address has lots of dashes or strange spellings of familiar words, it could be a scam site. Don't click links or visit online stores via social media ads. Instead, type the web address of the store directly into your web browser. Always check independent reviews. They're more likely to offer honest feedback from real customers than reviews on the web store or seller's page. Research the products you're looking to purchase, including the usual cost at other stores, and be suspicious of unusually cheap pricing. When transacting online, stick to secure payment methods like PayPal or credit card. They offer protection if something goes wrong.
When selling online, don't accept offers from anyone wanting to overpay. Don't rely on email confirmation of payment either. Check your bank account and ensure that payment has cleared before sending items to a buyer. If you ever feel like you've been scammed, the sooner you act, the better you can protect yourself and others. Scammers want to get your money and your personal details, so you should focus on protecting these as quickly as possible. You should contact your bank immediately and ask them to freeze or block your credit card. Scammers need active credit card numbers to take money and you can block the card quickly to stop them.
You should also change passwords and passphrases for accounts that may have been compromised. If you think scammers have gained access to your personal information, such as address, date of birth, and other details, then you should contact ID Care right away. ID Care is Australia and New Zealand's National Identity and Cyber support Service and will give you free help to make a plan to protect your identity. You should also report the scam to ScamWatch at www.scamwatch.gov.au to help protect others and stop the scam.