Online shopping brings several advantages to the consumer shopping experience. These include convenience, saving time, better information and competitive prices. However, despite these benefits, consumers should be constantly aware of potential risks, such as scams and online fraud.
Scams can come in different forms and they are all designed to get hold of consumers’ money. Some aim to steal consumers’ personal information or to trick consumers into providing their bank details to eventually effect unauthorised transactions.
The earliest such scams took the form of e-mails informing the recipients that they had won a large sum of money and requesting their bank account details to transfer the money. Even though most people are aware that in order to win something they need to participate in some form of lottery, some people still fell victims to such scams.
With the advances in digital communication, scammers have become more sophisticated and creative as to how to target people to steal their money and information.
People may also fall victim to scams while they are browsing to buy specific products. Unfortunately, if no precautions are taken, consumers may either receive products of inferior quality or completely different than they ordered, or may even end up empty-handed. And when they try to communicate with the seller, they realise that either the website no longer exists or that the contact information is fake.
Scammers have become more sophisticated and creative as to how to target people to steal their money
To limit the risks of becoming a scam victim, consumers are advised to follow these precautions:
1. Pay attention to the address box
Before making an online payment, check that the website address starts with ‘https’; the letter ‘s’ stands for ‘secure’. One should also look for the small padlock sign. Click on it to check the website’s security details.
It is also of utmost importance to make sure that your computer is protected against viruses and spyware. Some internet browsers make it easier for consumers to distinguish between safe and unsafe websites as they inform users that the website is “not secure”.
Even though it is a good start to only access websites that begin with ‘https://’ and display a padlock sign, this is not enough, and needs to be combined with the recommended steps below.
2. Check the domain name
Before including any personal information or credit card details, carefully read the URL as some fraudulent sites have URLs that at first glance look just like those of large brands or companies. Some cybercriminals set up sites that have just one letter different from the real websites, hoping that users mistype the URL or do not notice the intentional spelling mistake.
3. Do your research
Scammers are aware that consumers are more likely to shop online during this festive season, so they will try to deceive them by creating beautiful websites announcing fantastic offers.
One should never judge a book by its cover, so before buying from a seller for the first time, do some research first. Look out for reviews posted by other consumers to see whether the trader concerned can be trusted or not. Websites like ‘scamadviser .com’ and ‘who.is’ would indicate if a website is a scam or not, and confirm its reliability and credibility.
4. Look out for poor grammar, spelling
Take some time to carefully read the information on the seller’s website, such as the information about the company. If there are grammatical and spelling mistakes, this could indicate that the website was set up in another country and went online quickly. Trusted companies will put extra effort to present a professional website that includes all the required information.
5. Know with whom you are dealing
Professional sellers are legally required to include the company’s name and their full contact details where consumers can communicate with them. A serious company would also include the date when it was registered and its registration number. One should be careful of websites that provide little or restricted information, such as just an e-mail address or a contact form.
6. Refunds and returns policy
Legitimate websites should include information on how consumers can register a complaint, together with the link for the ‘Online Dispute Resolution’ platform. Furthermore, the trader should inform consumers about the cooling off period during which they can cancel the order and claim a refund without incurring penalties or charges.
7. Use only secure payment options
Before pressing the ‘buy’ button, consumers should ensure that any payments are conducted through secure means, such as through a credit card or a PayPal account. Direct bank transfers should be avoided. Credit card details should never be sent to sellers by e-mail.
8. Walk away if it’s too good to be true
While there may be stores that occasionally offer attractive discounts, for instance to get rid of old stock, it is very unlikely to come across discounts of, for example, 80 per cent on one of the latest mobile phones or the newest stock from a designer brand. Stay away from these websites as the chances are that you will end up not only without the product but also without the money you paid.
This information has been provided by the European Consumer Centre Malta. The ECC-Net is a European network co-funded by the European Commission and the EU member states. In addition to assisting consumers in case of a complaint or dispute, members of the ECC-Net engage in joint projects to investigate specific business sectors. ECC Malta is hosted by the Malta Competition and Consumer Affairs Authority (MCCAA).
Odette Vella, Director, Information and Research Directorate