Online scams: How to spot them and be a step ahead of the fraudsters

South Africa’s online retail industry experienced massive growth due to the COVID-19 lockdown over the past 12 months and this has also lead to a rise in online scams.

According to research the global online market grew by a whopping 40% over the past year, mainly due to the strong increase in e-commerce adoption among businesses and consumers.

While, online shopping has its perks, fraudsters often use times of uncertainty to take advantage of consumers. 

According to the Southern African Fraud Prevention Service (SAFPS), indicated that fraud increased dramatically in South Africa over the past 12 months, with impersonation fraud increasing by 337 percent.

In response to the rising fraud PayPal has provided consumers with the following fraud prevention tips to avoid an online scam:

• Check your emails. Scammers can easily fake the “friendly name,” but it’s more difficult to fake a full name. For example – a sender like “PayPal Service (zxk1942R3@gmail.com)” is not a legitimate message. If you are unsure of a sender, look at previous communication, the URL and how you were addressed.
• No company will ask you for sensitive information like your password, bank account, or credit card details over email.
• If there’s a link in an email, always check it before you click as it could be one of many online scams. A link could look perfectly safe but if you move your mouse over the link you’ll see the true destination. If you aren’t certain, don’t click on the link. Just visiting a bad website could infect your machine.
• If you find yourself in a situation questioning whether this could be a scam, there are two important themes to keep in mind to help you decipher if you’re dealing with fraud and potentially at risk:
• A fraudster will offer something irresistible, usually something that is too good to be true or a fraudster will request something and wrap it in a fake urgent scenario that encourages you to panic and act quickly, without caution.
• Online Merchant Fraud. Before making any payment through an online merchant, be sure to research the merchant and read reviews to ensure you’re shopping with a reputable seller.

Common themes of online scams

• Medical Treatment Scam: As South Africa’s roll-out plan for the COVID-19 vaccine is still being secured, fraudsters may take advantage of the situation by selling fake vaccinations or medical treatments that they claim can be used to prevent or treat the virus. Verify the legitimacy of any medication, using resources available from the South African Government website and be aware that vaccinations can and should only be done at approved clinics.
• Charity Scam: A fraudster may contact you asking for a donation to support a charity and will use every opportunity to tug at your heart-strings. Often they will use an emergency or rally support for a relief effort. Before making a donation online do your homework and research the charity. 
• Family Emergency Scam. A fraudster may pose as a relative or a friend and ask you to send money immediately to help with an emergency, sometimes insisting that the request remain secret. In these situations, the fraudster often tries to trick their victim into sending money before the victim realises the emergency is fake. Before responding to these types of messages, make sure to take steps to verify the identity of the person asking for money and never click on any links.
• Employment Scam.  As jobs are impacted due to the COVID-19 pandemic, fraudsters may use this as an opportunity to trick victims into paying the fraudster for an employment opportunity that ‘guarantees’ a profit. If it sounds too good to be true it usually is. 
• Invoice Fraud Scheme. A fraudster may take advantage of these uncertain times by posing as a reputable foundation or corporate brand to request funds or donations with a fraudulent invoice. There are many such online scams.
• Fake Debt Scam: A fraudster might contact you representing him or herself as a debt collector or court official, telling you that you must pay money that you don’t actually owe. Before taking action, research the claim and verify the real numbers for the government agency, office or employee. Do not agree to wire money in order to pay back the debt.

Report fraud and online scams to your bank and to the South African Fraud Prevention Service on 0800 029 999