Netsafe warns New Zealand shoppers of summer scam rise

Netsafe has issued a warning to New Zealanders to be cautious of online shopping scams as the summer months bring increased sales activity.

Brent Carey, Chief Executive Officer of Netsafe, highlighted that scammers are becoming more adept at exploiting the busy shopping season. "Scammers have become experts at blending in with the summer sales frenzy. While you're hunting for a good deal, they're hunting for your personal details and money," he noted. "We're seeing a new breed of scams that are more sophisticated and harder to spot."

The organisation's State of the Scams Report 2024, compiled with the Global Anti-Scam Alliance, indicates a significant financial impact, with total losses surpassing NZD $2.3 billion for the year. Online shopping scams have emerged as the most prevalent type, overtaking identity fraud.

Netsafe reports a surge in online shopping scam incidents during the holiday season when shoppers are attracted by seemingly lucrative deals. The report outlines several types of scams that have become prevalent in 2024.

Social media platforms like TikTok, Instagram, and Facebook have seen an increase in bogus advertisements. These ads showcase high-demand products at prices that appear appealing but are intended to defraud consumers.

Fake brand impersonation is also on the rise, with deceitful websites mimicking reputable brands and offering counterfeit sales and tracking systems to mislead buyers.

Another trend is the use of AI-powered chatbots by fraudulent sites, which imitate customer service personnel to gain the trust of unsuspecting shoppers.

Platforms such as Facebook Marketplace face issues as well, with scams involving fake listings for popular items such as electronics, toys, and unwanted Christmas gifts being reported.

Netsafe provides several tips to help consumers avoid falling victim to these scams. Their Scam Scanner tool, available at checknetsafe.nz, allows individuals to verify if a site or URL has been reported as a scam.

They recommend purchasing through recognised retailers by visiting websites directly and reading independent reviews, and caution against dubious payment methods, advising the use of secure options like credit cards, PayPal, or virtual cards.

Consumers are encouraged to take a moment to question whether a deal might be fraudulent, with a simple pause potentially revealing the signs of a scam. Regular monitoring of banking and credit card activities is also advised to quickly detect and mitigate fraudulent activity.

Dedicating time to review and enhance social media privacy and security settings is another suggested measure, helping to ensure personal information is shared appropriately.

Carey emphasised the importance of vigilance and utilising Netsafe's resources to ensure safe shopping experiences. "Scammers may be clever, but by arming yourself with the right tools and knowledge, you can outsmart them," he advised. "Stay alert, use the resources available, and keep your holiday shopping scam-free."

Netsafe offers support through their Scams Helpline, which is available daily except on Christmas Day, Boxing Day, and New Year's Day. Online reports can be made at their website.