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30% of Aussies have visited a fake retail site, with Gen Z most likely to be targeted

PayPal Australia 4 mins read

As the festive season approaches, Australians are preparing for their Christmas shopping. New research from PayPal reveals that 91% of Australians plan to buy at least one gift online this year, with two-thirds (67%) of Australians planning to buy half or more of their gifts online.  

With ongoing cost-of-living pressures, the allure of online end-of-year sales has grown with 65% of Aussies intending to take advantage of the discounts, including half (50%) who are gearing up for Black Friday deals. Among younger Aussies Black Friday is particularly popular with 72% of Gen Z and 65% of Millennials planning to shop. This makes Black Friday the most popular online sale event, followed by Boxing Day (38%).  

Half of the Australians surveyed (49%) said they are shopping the online sales this year to keep the cost of Christmas manageable. Half (49%) said they shop the sales online to avoid the crazy crowds, with easier price comparisons (48%) and being able to get better deals (47%) also key reasons for heading online rather than heading in-store for the end-of-year sales.  

Aussies gearing up for a cautionary Christmas 

While online shopping offers convenience and potential savings, there are also some risks. From ‘too good to be true’ offers to fake websites, Aussies need to be vigilant while shopping for gifts online. 

The National Anti-Scam Centre reported a significant rise in fake websites imitating genuine online retail stores last year with nearly 3,000 fraudulent sites leading to over $500,000 in losses. PayPal’s research supports this unfortunate trend, finding that almost a third of Australians (30%) have visited a fake website.  

Underscoring this rise in fraudulent activity, PayPal’s research found 4-in-5 Australians (79%) are more concerned about their personal data security than they were 12 months ago, with three-quarters (74%) saying they’ve abandoned an online purchase due to security concerns. Nine-in-10 Australians (91%) have experienced contact from fraudsters, with three quarters having received scam emails (77%), calls (72%), or texts (71%). 

Gen Z, the generation most likely to be targeted by fake websites 

The rush to snap up deals quickly, combined with their affinity for trending products and social media, makes younger Gen Z Aussies more likely to be targeted by fake websites during sales events like Black Friday.  PayPal’s research shows 44% of Gen Z shoppers have encountered fraudulent websites compared to a national average of 30%.   

Fraudsters aren’t taking it easy on young Aussie shoppers, with 70% of Gen Z being targeted by scam emails and 67% receiving scam texts claiming to be from legitimate businesses. However, Gen Z could take more precautions, half of them (51%) admitting to using free WiFi networks without checking if they’re secure – the highest rate across all generations.  

Recognising scams at Christmas, and how to stay safe 

Scammers often exploit the excitement of holiday sales, using tactics like countdown timers and "limited-time offers" to create a sense of urgency.  

Dan Grant, Consumer Shopping Expert at PayPal Australia, emphasises the importance of caution: “The end of year sales are a great way to snag a bargain and online shopping is definitely the most convenient way to access deals across multiple outlets, do quick price comparisons and organise deliveries.   

“However, Aussies should be extra vigilant during the sales period and recognise the signs of fake deals and sites.  Slow down, use trusted payment methods and always trust your instincts – if a deal looks too good to be true, it probably is.” 

To help Australians navigate the holiday shopping season safely, PayPal offers the following seven expert tips: 

  1. Avoid public Wi-Fi networks: Use secure, trusted networks when shopping online. Public Wi-Fi can expose your device to hackers. 

  1. Use secure payment methods: Opt for payment methods like PayPal, which have added security, encrypt your payment details, and offer ‘Buyer Protection’ should your eligible purchase not arrive, be damaged on arrival or not match what you ordered.  

  1. Be wary of ‘too good to be true’ deals: If a looks too good to be true, it well might be. Check the retailer’s official website to avoid falling victim to fake promotions.  

  1. Avoid suspicious links: Don’t click on links sent via email or text as they may lead to phishing sites or malware. Go to the official website of the retailer. 

  1. Monitor your statements: Regularly check your bank and payment statements for unauthorised transactions and if you see any, report them immediately. 

  1. Enable two-factor authentication: For added protection, enable two-factor authentication on your accounts where possible. This will send a code to your device to verify that it’s you. 

  1. Be cautious of fake websites: Look out for signs that a website is a fake, including poor spelling and grammar, a lack of contact information along with no physical address, no locked URL, and limited or no secure payment options, such as PayPal. 

Stay up to date on the latest scams targeting consumers at www.scamwatch.gov.au, or visit www.esafety.gov.au to learn about how you can better protect yourself online among other things. 

                                                              -ENDS- 


Key Facts:
  • 65% will shop the end-of-year sales, with 50% of Australia planning to participate in Black Friday 

  • 91% have been contacted by fraudsters, with a majority receiving scam emails (77%), calls (72%), or texts (71%) 


About us:

PayPal has remained at the forefront of the digital commerce revolution for more than 25 years. By leveraging technology to make sending money and shopping more convenient, affordable, and secure, the PayPal platform is empowering hundreds of millions of consumers and merchants in more than 200 markets to join and thrive in the global economy. For more information, visit https://www.paypal.comhttps://about.pypl.com and https://investor.pypl.com/ 

 

PayPal Australia was established in 2005 and has more than 9.5 million active Australian customer accounts. PayPal enables Australian consumers and businesses easily and securely send, receive, and manage their money. The PayPal service is provided by PayPal Australia Pty Limited (ABN 93 111 195 389) which holds an Australian Financial Services Licence number 304962. For more information visit PayPal Australia Newsroom for more information and follow us on Instagram or Facebook. 

 

About the research 

PayPal Holiday Shopping Research 2024 was produced by PayPal Australia Pty Limited, based on a study conducted by Fifth Quadrant with n=1,022 consumers and n=413 businesses. It contains general observations about trends in eCommerce, as well as security, Buy now pay later, holiday shopping and circular economy. The study does not take into account the objectives, situation or needs of any specific business or individual. The consumer research conducted by Fifth Quadrant consisted of a 20-minute online survey of n=1,022 aged 18 – 75 years. In addition, Fifth Quadrant conducted a 10-minute online survey of n=413 business decision makers within Australian B2C retailers and businesses who operate entirely or partially online.  


Contact details:

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