Hashiem Logday
In recent years, we have witnessed explosive growth of online market places and the increasing prevalence of e-commerce businesses. As businesses adapt—albeit slowly—to the modern consumer who prefers purchasing products from the comfort of their couch, there is a parallel rise in the sophistication of scams and fraud aimed at exploiting this shift.
Platforms like Facebook Marketplace, Gumtree, and more recently, social media runners operatingon TikTok and WhatsApp, have reshaped how people buy and sell goods. Instant communication,ease of use and the ability to reach a wider audience with minimal effort, are just a few of the advantages these platforms have for sellers and consumers over physical retail stores.But, like most unregulated spaces, there are significant risks involved.
The risks in buying from these online resellers or “runners”, include the following:
1. Being scammed: You might pay via EFT, PEP Pay, e-wallet, or even cash, and never receive the
product;
2. Receiving counterfeit goods: If you do receive the product, it may be an inferior counterfeit
version; and
3. Unknowingly purchasing stolen goods: There’s a potential that the product was stolen and is being offloaded.
In particular, the proliferation of counterfeit goods being sold on social media—particularly TikTok—is somewhat impressive. In somecases, individuals even host “virtual tours” of stores, sometimes purporting to represent reputable brand stores, and often from dubioussources like the Johannesburg CBD, showcasing what they have for sale or can source for a fraction of the retail price.
The old adage rings true: “if it sounds too good to be true, it probably is”. A particularly egregious scenario involves a “social mediainfluencer” I encountered who was marketing luxury products at a discount via their e-commerce store. Upon investigation, it wasrevealed that they were selling counterfeit products at the same price as genuine ones, defrauding their fans and earning tens ofthousands of rands monthly. These fake or spoof websites, mimic genuine brand sites and prey on the consumers’ lack of attention to detail. While these sites often have slight misspellings in their domain names or misleading redirects, they are able to replicate the legitimate site without too much effort and, in the absence of detailed scrutiny, it can be difficult to tell this apart from the original webpage. These sites can even appear at the top of the results page of a Google search.
Given South Africa’s current economic challenges, more consumers are vulnerable to these threats as we often chase deals and discounts.
Saving a few hundred rands, can lead to compromising your personal information or even your banking details.
As criminals become smarter and their methods become more sophisticated, so too must we as consumers become more discerning.
To save you some “holiday pain” this festive season, here are some practical tips for safer online shopping:
1. Check the website name carefully: Ensure it matches the legitimate brand you intend to purchase from.
2. Be wary of extreme discounts: A 90% discount is almost always a red flag.
3. Review the privacy policy and terms and conditions: A quick skim through for misaligned text or different fonts. We often click accept without reading a sentence, in those cases the bare minimum should be a sense check. If these do not align with the brand’susual details, something is likely amiss.
4. Exercise extreme caution with online resellers and second-hand dealers: While not recommended, if you choose to buy from them,understand the risks and take extra precautions. Meet in a public place or at a police station. Check reviews and do not transfer money before the item has arrived or been tested.
Vigilance is crucial in today’s e-commerce world. The convenience of online shopping should not come at the expense of your financial security or personal data. By staying informed and cautious, we can outsmart scammers and enjoy the benefits of a modern digital marketplace.
Hashiem Logday, Associate at Adams & Adams. He writes in his personal capacity.INFO SUPPLIED.
