Member Article

Online goods fraud: The warning signs

Online goods fraud is among the most prevalent Internet fraud crimes. At the end of last year reporting of online shopping and auction fraud had increased by 163% since the same time the previous year, according to Action Fraud. This is a phenomenal sum and something for retailers and consumers alike to be wary of. How can online shoppers remain vigilant when it comes to internet safety?

To make sure consumers aren’t caught out by fraudsters, Naveen Aricatt, Legal Counsel at Trusted Shops, lists the most important warning signs:

Warning sign 1: Incomplete imprint

Naveen Aricatt: If the imprint cannot be found or is difficult to find, consumers should be very careful. The following information should also be included: Name of the company and legal form (if applicable), full first name and surname of the owner or of at least one authorised representative, the current address (not a P.O. Box), a telephone number and e-mail address.

Warning sign 2: Very low prices

Naveen Aricatt: If the feeling “It’s too good to be true” creeps into your mind when looking at the low prices in an online shop, there’s usually a reason for this and the online buyer should be sceptical. After all, consumers continue to be victims of their own bargain mentality.

Warning sign 3: Advanced payment as the only payment method

Naveen Aricatt: To get at Internet shoppers’ money more quickly, online fraudsters tend only to offer advanced payment. In this case a bank transfer cannot be reversed and the buyers’ money is lost, so be wary.

Warning sign 4: No availability

Naveen Aricatt: Sometimes a product enquiry over the phone is worth its weight in gold. If the call is not taken after numerous attempts, the telephone number is incorrect or there is even no phone number listed, this should set alarm bells ringing..

Warning sign 5: Negative reviews on forums and similar

Naveen Aricatt: Anyone who enters the name of a retailer or online shop into a search engine will sooner or later find negative posts in forums. Depending on the criticisms, these can provide vital information that could indicate that the shop is fake

This was posted in Bdaily's Members' News section by Trusted Shops .