The winter sales period is an ideal time to pick up a bargain. However, according to a recent survey1 by Klarna, a number of consumers have fallen victim to online fraud in the past, with approximately one in six Brits saying they have been scammed when shopping online during the holiday season, with parcels that never arrived or items that look completely different from what they ordered. It’s therefore no surprise that 64% of consumers prioritise shopping on ‘secure and trustworthy’ sites when purchasing items online.
According to Klarna’s data, the incidence of scams when shopping online is higher among younger consumers. Specically, 26% of Gen Z consumers (ages 1826) and 27% of Millennial consumers (ages 2742) have been scammed. This is signicantly higher than the Baby Boomers (ages 5975), where only 4% have fallen victim to scams.
So to help shoppers navigate the winter sales, Klarna, the AI-powered global payment network and shopping assistant has pulled together these five key points to consider when shopping online:
1 The survey was conducted in October 2023 in collaboration with Nepa among 15,256 respondents in 15 countries. 1,051 people took part in the UK.
1. Don’t be overly alarmed by minor issues in grammar, spelling, or unusual phrasing. A single typo on a website does not necessarily indicate that it’s fake or run by scammers. However, it could be a sign that the website was created in a hurry and may not belong to an authentic company.
2. Shady online stores can sometimes be recognised by the payment methods they offer – or rather, the ones that are not available. Fake shops often prefer advance payment, as it makes it difcult for victims to get their money back. Payment Checkout methods such as debit or credit or Klarna’s exible payment options, on the other hand, are not accepted, in part because the latter provides additional buyer protection. By using a Klarna payment method for an online purchase, shoppers may be eligible for Klarna’s buyer protection, adding an extra layer of security to their online shopping experience.
3. Unclear refund policies: A reputable retailer will provide clear instructions on how and where to return a product if you are dissatised. In contrast, fraudulent websites often have refund policies that are hard to understand, difcult to nd, or nonexistent.
4. One common feature of fake shops is the use of website names that resemble well-known brands but have slight variations. Pay close attention. If the website name doesn’t match the goods being offered by the shop, it could be another indication of a fraudulent offer.
5. If it sounds too good to be true, sadly, it usually is! Extremely tempting discount offers (especially for well-known branded products) can be a sign of a scam. Shoppers should not let low prices blind them – be extra vigilant. For those seeking great deals, Klarna can help with that – whether through the app or website, Klarna provides daily rotating online deals and exclusive Klarna deals.
In the midst of the January sales, it’s important to remain vigilant. In the end, it’s often our gut feeling that’s right from the start. If something feels off, it’s important to follow that instinct and take a closer look at the website.
