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| -Image by Copilot |
It’s not just Santa’s elves that are busy in the lead up to Christmas. Scammers are also poised and ready to take advantage of the festive season. We are busy, rushed and ready to spend and may not be as careful about whom we send our money or information to. This is especially true of our young people, who may not be as aware of the resources and remedies available to them. Not that you have to be young to be taken advantage of. I made a mistake myself this month which I will tell you about shortly.
I have written quite a bit about scammers in 2022, but some things have changed. For example, scammers have learned to game the system, offsetting any negative reviews by flooding the review sites with positive reviews or websites with fake testimonials. They have also used AI to advance their cause, but it is also being used to catch them. Trust Pilot for example, has been using advanced AI to weed out around out 3.5 million such reviews in 2024. You now also have to verify yourself before reporting, so that no -one’s reputation is unfairly targeted.
Nevertheless, these days you should check at least three sources to find out whether a company is reputable before hitting that send button. And make sure it has a legitimate street address and a phone number.
Think before you click
- Don’t click on any links in an
email. If you get a message claiming to be from a government
department, the Post Office or even a business you usually deal with, ring them directly -not any number on the message, go to
their website yourself and find out if they contacted you. If not, report it to one of the websites at the end of this post. The University of Denver has clear, concise instructions about how to check emails and web addresses
- If purchasing something
online, always pay via a Third Party platform such as PayPal. That way,
there is some chance you will get your money back if something goes wrong or you do not receive the product or service. If they refuse, that’s already a red flag
- Don’t give out any more personal information than absolutely necessary. There have been many data breaches. As of December 4, 2025 the European Union is in the process of changing its Consumer Protection Laws to make it illegal to insist on users opening an account when browsing a website or ordering things online and it will limit the amount of personal data which can be collected. This will become the global standard for non -EU sites too. It also seeks to prevent "dark pattern" misuse about which we will talk further.
- Don’t be pressured into buying
now because there are “only two left” or “Sale ends tonight.” Unless it’s true, it’s an offence to do that
in Australia and our consumer laws apply for any product sold in Australia regardless of where it comes from.
- Check your account often and
immediately after buying anything. The longer you wait, the harder it is to
get a refund and the more chance scammers have to misuse your account, identity
or anything else. If you think
all these precautions are annoying, you should see how annoying and time
consuming it is, trying to get your money back or having to replace all your
credit cards, change all your passwords and so on.
- If you notice unauthorised
charges on your account, report it immediately, ring your bank or credit provider or whatever platform you used and they will tell you what to do. It may mean cancelling your credit cards, starting dispute proceedings or perhaps changing your passwords. In fact, it's a good idea to switch to two -factor authentication, to help prevent future attempts on your accounts or information.
- Document everything –
Screenshots, receipts, and correspondence strengthen your case if you need to
dispute charges.
- If you think you have been the victim of a scam, report it to state authorities or consumer watchdogs in your region. In Australia for example, you can report to Scamwatch or commercial platforms such as Trust Pilot any suitable ones at the end of this post.
New Scams
'Ghost' Stores
Our public broadcaster recently ran an excellent news item warning people about shopping online this Christmas. Their story was about 54 ‘ghost’ stores, claiming to be Australian and promising beautiful Italian linen clothes at bargain prices because they had to close down due to various unfortunate circumstances. The clothes were not as advertised but returning them involved shipping them back to a factory in China at your own expense. Some still did not offer a refund but only credit. This was a timely warning as I had been on the point of ordering some items online – yes, really. [I do try, but can never get anything to fit or suit!}. As the ABC ‘s article clearly shows, fake reviews aren’t uncommon, nor are fake testimonials using famous names and stock photos. The whole video is worth watching. At least in this case, I was spared another fail. Not so with another company.
How Countries are Dealing with Drop Shipping and Ghost Stores:
- Global Challenge: Drop shipping itself is a legitimate business model, but “ghost stores” that exploit it for scams are harder to regulate because they often operate across borders with minimal physical presence.
- EU and Australia: Regulators emphasise transparency in e-commerce, requiring clear seller identification, refund policies, and consumer rights protections. Enforcement actions target fraudulent operators when identified, but proactive regulation is still evolving.
- Consumer Education: Many countries invest in public awareness campaigns warning consumers about fake online stores, encouraging verification of seller credentials and reviews before purchasing.
- Payment Provider Actions: Some payment platforms and banks have started flagging suspicious merchants or transactions linked to ghost stores, offering some layer of protection.
Negative Option Billing (NOB)
This is about being signed up to some type of subscription and being automatically charged unless you actively say no. Sometimes this is presented as a free trial or other misleading offer. This places the burden on consumers to opt out and is widely criticised as a ‘dark pattern’ because it exploits inertia — people forget to cancel or don’t realise they’ve been signed up.
That's what happened to me. I had had a minor disagreement with Uber over an additional charge. I looked on the App to contact them about it, but only got a chat bot, which gave me a link to a specific company. The blurb said I had to pay a $1 for a year of support. It was barely worth it for the money involved, but I wanted to have my say about the matter, so I clicked on the link since I couldn't go any further otherwise.
To my surprise, a few minutes later, I was notified by PayPal that two charges had gone through for that company. Assuming that the $1 charge had gone through twice I opened my account to fix it, but to my dismay, the second charge was a monthly subscription for $69 by the same company. I had not signed up for that. Luckily PayPal came to my aid and the charge was reversed, but not without quite a lot of anxiety on my part and a good deal of wasted time for all concerned.
I can’t imagine what it would have done to someone like my sister, who is already very apprehensive about anything to do with online shopping or banking. PayPal always asks you to contact the merchant first, but the phone number listed on their PayPal account was disconnected (another red flag!). If you want to do business in Australia you must have a valid street address and a working phone number.
They did eventually pay me back, but as it's the third time that this has happened to me in the last 18 months, I wrote a review of this company for Trust Pilot. Why should I or anyone else have to go through this? If their service had merit, they would not need to resort to these tactics.
Despite offers of “goodwill gifts” and requests to change or cancel my review, I haven’t done so because I don't want other people to be caught this way. Nor have I responded to further requests to communicate, because these also involved clicking on a link. Although Uber also paid me back eventually, I am still unhappy that they gave me no option but to deal with this company.
How Countries are Dealing with NOB Issues
- European Union: The EU is tightening consumer protection laws through initiatives like the Digital Services Act (DSA) and updates to the Consumer Rights Directive, demanding clearer consent, easy cancellation, and transparency in recurring charges. These regulations aim to ban or heavily regulate NOB practices and empower consumers with stronger rights and enforcement mechanisms.
- United States: Laws such as the Restore Online Shoppers’ Confidence Act (ROSCA) require clear disclosure of recurring charges and prohibit deceptive billing. The Federal Trade Commission (FTC) actively pursues companies violating these rules, and some states have their own stricter laws.
- Australia: The Australian Competition and Consumer Commission (ACCC) monitors and takes action against unfair billing practices, including NOB. Recent consumer law reforms focus on transparency and easier cancellation of subscriptions and recurring payments.
Helpful Sites:
1. Government and Regulatory Sites
-
Australian Competition and Consumer Commission (ACCC) – Scamwatch:
A leading source for scam alerts, advice, and reporting in Australia. Scamwatch is well-regarded for its independence and up-to-date info. -
European Consumer Centres (ECC-Net):
For EU residents, ECC-Net offers free advice and support on cross-border consumer issues and scams. -
Federal Trade Commission (FTC) – Consumer Information:
For US residents FTC provides extensive resources on avoiding scams and reporting fraud.
2. Independent Review and Watchdog Platforms
-
Better Business Bureau (BBB):
While US/Canada-focused, BBB is known for transparency in reviews and complaint handling. Watch for any signs of businesses trying to “game” the system. -
Trustpilot:
Widely used for customer reviews worldwide, but best to read reviews critically and look for patterns or verified reviews. Some businesses try to manage reputations here, so cross-check with other sources. -
SiteJabber:
Focused on online businesses and services, SiteJabber offers consumer reviews and scam alerts. [I hadn't heard of this site at all. Had nothing on the business I was complaining about, but plenty of similar experiences with Uber customer service.
3. Scam Alert Communities and Forums
-
Reddit – r/scams and r/ScamReports:
Active communities where users share firsthand scam experiences and warnings. Moderated but user-driven, so good for real-time alerts. -
Scamwatchers and Scamvoid:
Websites that aggregate scam reports and analyse suspicious domains or services.
4. General Tips for Verification
- Always cross-check company details with official business registries (e.g., ASIC in Australia, Companies House in UK).
- Look for clear contact information and physical addresses.
- Search for news articles or consumer complaints beyond review sites.
- Use WHOIS lookup tools to check domain registration age and ownership transparency.
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