A local social survey by PayPal revealed that only 23% of respondents perceived payment security as a concern and challenge when buying goods through overseas online stores.
According to Mark Mwongela Ngungi, sales development director of PayPal Africa, this could be pointing to a concerning level of consumer numbness.
“Thanks to its ease and simplicity, online shopping has become second nature to many consumers. This in itself has resulted in consumers often not thinking twice before clicking on the check-out button or payment link,” says Ngungi. “This is surprising given the near daily news of security and privacy breaches, and suggests that consumers are becoming numb to the threats to their personal data.”
Online scams
Paired with the payment rush created with tactics such as ‘limited quantities available’, and the promise of never-to-be-repeated deals, consumers could be placing themselves at an increased risk of fraudster tactics and online scams.
While retailers and stores are gearing up for Black Friday and the festive season, so are the fraudsters!
Here’s what you should do to guard your wallet:
- If you have not changed your password recently, do it now – and don’t use the same password on multiple sites. Use a complicated sequence of numbers, letters and special characters.
- Strengthen your security by using passkeys (a phishing-resistant login method that is more secure and easier to use than passwords), when offered.
- When you spot a deal via online adverts, check the website URL for legitimacy and check the website for spelling and grammar errors (often noticeable on false websites). Ideally navigate to the brand’s social media page or web page by using a search engine or the search functionality offered by the social media platform.
- Don’t click on unknown links, dial numbers that are sent via e-mail or SMS or divulge personal information telephonically.
Mwongela also urges frequent online browsers and shoppers to be mindful of the latest scams, as fraudsters are increasingly using a mix of channels such as SMS, phone calls, e-mail and social media channels, to convince consumers that accounts have been compromised.
The use of fear as a tactic drives shoppers to take immediate action to protect their account, not realising that they are releasing personal information into the wrong hands.
Phishing e-mails
Phishing e-mails attempt to trick consumers into divulging personal information such as passwords, account and credit card details. These e-mails might suggest that an account has been compromised, information has to be updated or that there is an issue with a delivery due to missing details.
How to avoid it:
- Double click on the sender’s address to ascertain if the e-mail address is legitimate; false accounts regularly have addresses that consists of a string of numbers and letters and with a domain name (the name after the @ sign) that does not correspond to the actual brand or retailer.
- Never click on any links or dial any number contained in such an e-mail (or SMS). If you feel the need to check your information, access the retailer or brand’s contact centre number on their website through a search engine (Google, FireFox etc) and contact them directly.
Fake social media brand adverts
Fraudsters have been using deceptive advertisements on social media platforms such as Instagram and Facebook, to trick consumers into buying goods at attractive prices from a website that falsely poses as a popular brand or retailer.
These websites are generally almost exact replicas of the real brand’s webpage, making it hard to differentiate between what is authentic and what is not. Buying on such a fraudulent site means your personal information will be in the hands of fraudsters and you are unlikely to ever receive the item purchased.
How to avoid it:
- If you are served a deal through a social platform advert, search for the brand’s social media page and click through to their website from there – if you cannot find the deal, chances are good that it is a scam.
- If you have made a purchase and are questioning the site’s legitimacy, keep an eye out for “order confirmation” e-mail – often these are never sent or they are riddled with errors. Immediately notify your bank so that further deductions from your account can be avoided.
“Compared to 2021, banks saw an increase in online shopping during the 2022 festive season and this trend is likely to continue during the upcoming Festive Season. We urge frequent online shoppers to familiarise themselves with the safety processes and protection offered by their payment method. PayPal’s purchase protection, as an example, lets PayPal users request a refund if they never received the item or if it showed up significantly different from its description,” says Mwongela.
If you have noticed a scam or suspect that you might have fallen victim to one, immediately contact your bank to report the fraud and to block your cards (in the event that card details were supplied). Informing friends and family thereof also goes a long way in creating awareness and helping others to safeguard themselves.
