Fake online shopping sites that mimic legitimate sites could potentially be duping South Africans out of millions of rand a year.
The Southern African Fraud Prevention Service (SAFPS) has warned of an increase in fake online shopping sites, saying that more than R500 000 was stolen in the first quarter of this year.
The organisation said more than 60% of incidents reported to them were related to online scams, more than a quarter of which involved offering huge discounts on luxury goods or requesting an advance fee to secure the goods.
SAFPS said that South Africans were embracing online work and shopping but lacked the knowledge to protect themselves from the associated risks.
“South Africans have taken to the online, work-from-home, and virtual lifestyle like a moth to a flame. However, many do not understand how to protect themselves against the risks associated with online activity and online shopping. Over 60% of the incidents reported to SAFPS by victims are rooted in an online-related activity which culminated with the victim being put out of pocket or compromised.”
SAFPS noted that fake online shopping sites were becoming increasingly sophisticated and challenging to identify.
These fraudulent websites often mimic reputable brands and trusted retailers, making it difficult for consumers to distinguish between genuine and fake platforms.
“The scam can be as simple as presenting an offer to a potential customer via an advertisement online or a social media platform which directs you to a phishing website, or they install malware on your device the moment you click on advertisement to view the offer.
A more complex scenario could involve the website incorporating a valid online payment service and once you complete such payment, you have just paid for a product which will never be delivered, while compromising your personal and credit card details and possibly installed malware on your device in a single incident,” said the SAFPS.
“Unfortunately, technological enhancements today may make it exceedingly difficult to easily identify a fake online shopping website, so we encourage you to make use of tools like the Yima DNS scanner or browser extension which detect known vulnerabilities, and previous scam reports made about the website so you do not fall victim as well.”
Brand reputation strategist Solly Moeng said fake sites hurt the reputation of the real brands as any customer dissatisfaction emanating from consuming fake products would be directed at the real brand and risk taking business from it. He said they damage the original brand by creating doubt, and it becomes hard to rebuild.
“A number of well established luxury brands, including Gucci, YSL (Yves Saint Laurent) and others, have seen goods carrying their names being sold to unsuspecting clients. I have had people asking if my carry-on Gucci bag with roller wheels is real. Where people used to trust blindly, now they question authenticity.
Luxury brand watches have also experienced this,” said Moeng.
He also advised brands to monitor online mentions, report fake products to authorities and alert customers.
Moeng also advises brands to take necessary steps to rebuild trust in their customers after a scam incident.
“Monitor abuses, report them and warn customers, invest in security and authentication features on their real sites, and constantly add features to their products that make them stand apart.”
National Consumer Commission (NCC) spokesperson Pheto Ntaba said consumers can use Yima to scan websites and report scams.
“We have collaborated with the SAFPS where consumers can use the Yima tool to protect themselves against online scams.
The DNS scanner that’s available on the SAFPS Yima website helps consumers to scan websites before transacting. Where the trust score of the website is low, consumers have an option to leave the website. Consumers can use the same tool to report scams,” said Pheto.
Pheto said the NCC conducts education and awareness initiatives in order to give consumers online transaction tips to avoid online scams.
“In instances where consumers report the online scams in time, the NCC can investigate the complaints with the view to recoup the money lost by the consumers. This is done in conjunction with other law enforcement agencies, using the provisions of the Consumer Protection Act on fraudulent schemes,” said Pheto.
The NCC suggests that consumers can protect themselves from online scams by following some of these tips:
- Use the http://www.yima.org.za/ tool to check for safe sites.
- Check the padlock in the address bar.
- Verify the website’s trust seal or trust marks.
- Check reviews.
- Analysing the overall look of the website helps in picking up discrepancies.
- If the price looks too good to be true, it probably is.
- Assess the spelling discrepancies disguised as known online shops.
The Mercury