Scammers pretend to be buyers or sellers to steal your money. They set up fake websites and create fake profiles on real retailer sites. They can also post fake ads and fake reviews.These scams will offer products or services at low prices so you think you're getting a great deal, but you're not. 

Scammers can look like businesses that you know and trust. Always check that you are paying the real person or business when buying or selling products and services online.

Scammers also set up scam gambling apps and websites with promises of sign-up deals, referral bonuses and great returns. The scammers will steal your money, but you won’t receive any winnings. 

On this page

Warning signs it might be a scam

  • A seller offers products at an unbelievably low price. They claim they have amazing benefits or features that sound too good to be true.
  • An online seller doesn’t have any terms and conditions, ABN or privacy policy on their website.
  • A buyer willing to buy an expensive product you are selling without viewing it in person.
  • A buyer sending a cheque or payment that is more than the agreed price and asking you to refund the overpaid amount.
  • Being told to pay in unusual ways including paying by money order, pre-loaded card, or to several different PayIDs or accounts.
  • The account holder doesn't match the person or business you think you are paying.
  • You’re promised sign-on bonuses or returns that sound too good to be true. 

Steps you can take to protect yourself

  • Look for the ABN and check it on ABN Lookup (business.gov.au) to see if it's a real business. 
  • Be wary of social media stores that are new and selling products at very low prices.
  • Check that a website you want to buy from has information about privacy, terms and conditions of use, dispute resolution and contact details, plus a secure payment service like PayPal or credit card.
  • Check that the physical location of a store you find online really exists and that the store really is located there.
  • Don’t pay money for big-ticket items before inspecting the product in person. 
  • Don’t pay money to release your ‘winnings’ or ‘earnings.’

Check the details

  • Search for the official site of the organisation. Don’t assume that the first search result that comes up in an internet search engine is the real website.
  • When using PayID or bank transfer make sure the name matches the person you think you’re paying. Some banks will confirm the payee details match when doing a bank transfer.  
  • Check the Australian Communications and Media Authority’s register to see if an online gambling operator is licensed. If not, then it’s an illegal operation.

How to check a website

  • Type the website and the word scam or review into a search engine and review results carefully
  • Check the websites URL for red flags such as:
    • multiple dashes or symbols in the domain name
    • domain that imitates a business, such as Ap9le
    • domains for Australian businesses that don’t end in .com or .com.au
  • Check the contact page. No contact information is a sign it's likely a scam.
  • Use the ICANN Lookup search to see when the website was registered.
  • If the website is a .com.au, use the Australian Domain Authority’s website to see which company or trademark registered it.

Common products and services scams

Scammers set up stores or profiles that look real to sell popular or luxury items. Common products scammers try to deceive you into paying for include, toys, BBQs, gym equipment, clothing, shoes, and phones.

They will offer products on their fake websites, or on a cloned or copy website of a popular store. They also sell through their social media profile or store, or through a profile on a legitimate selling platform like Amazon.

For more information, watch our video about online shopping scams. 

Scammers set up accounts as sellers on popular online marketplaces such as Facebook, Gumtree, or eBay. Often the buyers and sellers may be individuals rather than businesses.

Scammers will also sell expensive products like cars, boats, or caravans. Always inspect the product in person before making a payment.

Protect yourself by using secure payment methods recommended by the marketplace or platform. Keep communications within the platform. Where it’s available, check the person you are paying (payee) matches the account or PayID you are paying. If not, don’t pay. Many payments are now made instantly and it’s unlikely you will get your money back.

Scammers pose as landlords for rental and holiday properties. They will post ads for rental properties that may not exist or that do exist, but they do not own. Scammers will come up with excuses about why you can’t inspect the property and will ask you to pay a bond or rent in advance. They may also ask you to send identity information like your licence or passport.

Never pay money for a rental property you cannot inspect. Make sure you are dealing with an estate agent licensed to operate in your State. Do an online search to make sure the property exists and is a rental property.

Scammers set up fake websites to deceive you to pay money for popular breeds, cute puppies, or other pets. They set up fake profiles on social media and online marketplaces to convince you to buy a pet that doesn’t exist.

If you are buying a pet online, always stop and check:

  • View the pet in person by visiting the breeder or seller
  • Request to see the pet in a video call with the breeder
  • Verify if the breeder is legitimate and accredited
  • Compare pricing - if it’s very cheap, it’s likely a scam

Scammers offer health and medical products and services to deceive you to pay money for products that don’t work and won’t cure you.  Some of these products may be dangerous. If you are worried about your health always see a doctor. Never take medical advice from people on social media or online forums.

If you need online delivery for a prescription, ask your healthcare professional if they can recommend an online pharmacy. Never access an online pharmacy site through a link in an unsolicited email - delete the email.

Real pharmacies that trade online will list their full contact details. They will need a doctor’s prescription before they send out any medicine.

If you want to use an overseas-based online pharmacy, you should check with the Therapeutic Goods Administration that the product does not contain any ingredients that are prohibited in Australia. 

Psychic and clairvoyant scammers approach you by post, email, telephone or face-to-face. They predict a positive upcoming event or claim that you are in some sort of trouble and offer a solution.

Never send money, credit card or other personal details to these scammers.

If you want to use the services of a psychic or clairvoyant, make sure you know the total cost and exactly what you will receive. Ask if there are any conditions and ongoing or hidden costs before proceeding.

Online gambling

'Scambling' is a type of online gambling.

Scammers are creating gambling and gaming apps and websites that look like a fun way to win some money. 

These are often advertised on social media in the same way that licensed gambling sites are. They attract people by offering sign-up bonuses, referral deals, and great returns. They allow people to deposit money into their gaming accounts, but they won’t pay out their ‘winnings.’

In some cases, people may be unknowingly involved in money laundering.

Online gambling providers must be licensed to operate in Australia. If an app or website doesn’t exist on the ACMA's register of licensed interactive gambling providers, it’s an illegal operation.

Computer prediction software

The scammer sells you a software program to predict sporting results promising high returns.

The information used to make the predictions can be found in the betting pages of your local newspaper at very little cost.

Betting syndicates

The scammer asks you to become a member of a betting syndicate for a joining fee (often over $15 000). You are required to make ongoing deposits to maintain the balance of the account.

The scammer tells you that they will use funds in the account to place bets on behalf of the syndicate. You, and other syndicate members' are promised a percentage of the profits, but the scammer simply steals your money.

Videos about online shopping scams

Video about online shopping scams

Online shopping has become a part of modern life, and many people love it.

But while you are searching for the best deals online, you're likely to come across scams.

And because they're so hard to distinguish from the real deal, it's important we take a closer look at what's going on.

Olivia is a regular online shopper, so she's a target for scammers.

They impersonate well-known retail websites or pose as sellers on social media and online shopping apps and marketplaces.

They offer products or services at low prices to create a sense of urgency with limited time offers.

So, it's important that Olivia, and you, are aware that things are not always what they seem.

Scammers can be extremely sophisticated.

They use stolen logos and design professional websites.

They can register an Australian domain website and even display a stolen Australian business number or ABN.

They also post fake ads and fake reviews to convince you they're real.

While online shopping scams can be very difficult to spot, sometimes there are warning signs.

Ask yourself, is the seller offering a product at an unbelievably low price?

Are links to information like terms and conditions absent from their website or not working?

Is the ABN or privacy policy missing?

Are the reviews mostly all positive or posted within a short period of time?

Are you being told that you must pay by unusual methods, like money order, gift cards, or cryptocurrency?

Another warning sign might be that you are asked to pay to several different pay IDs or accounts.

If you notice any of these red flags, it's usually a sign that the seller is a scammer.

It's important to never ever pay for an online product or service without first checking who you are dealing with.

Now, that Olivia is suspicious, she should stop what she's doing.

She can check by visiting the official site of the business she thinks she's dealing with by doing a browser search.

Don't assume the first search result that comes up is the real website, because the scam sites can also appear at the top of the list.

Excellent job, Liv, there is no sale.

Also, read independent reviews before buying and check the profile history of marketplace sellers.

Check the sellers contact page, if there are no contact details, it's likely a scam.

If there's an address check the organisation exists at the address on an online map.

(gentle upbeat music)

Now, protect yourself.

If you suspect you have been the target of a scam, call your bank immediately to stop any further losses, cut all contact with the seller, and report scams to Scamwatch.

Your report will help us to protect others.
 

Think you’ve been scammed?

  1. Act fast to stop any further losses

    Contact your bank or card provider immediately to report the scam. Ask them to stop any transactions.

    Change passwords on all your devices and online accounts like banking, email, government and shopping.

  2. Get help to recover

    IDCARE is Australia and New Zealand’s national identity and cyber support service. They can help you make a plan (for free) to limit the damage. Call them on 1800 595 160 or visit their website to find out more.

  3. Report the scam

    Once you have secured your details, you can help us try to stop the scam or to warn others by reporting the scam to us.

Find out more about what to do if you've been scammed