PayPal warns Aussies of risky shopping ahead of sales

New research from PayPal reveals that risky shopping practices among Australians have increased by 9% from last year as they prepare for Boxing Day sales.

The study found that three-in-four (73%) Australians are likely to engage in distracted shopping behaviours that could make them vulnerable to scams. With nearly two-in-five (38%) planning to shop during the Boxing Day deals, there is a concern about the rising trend of multitasking while shopping.

The habits identified in PayPal's research include 43% of Australians admitting to shopping online while watching TV or streaming, lying in bed, working, or even shopping in-store. Some are also shopping online while on public transport or in a car (29%).

According to the Australian Signals Directorate, online shopping fraud ranks as the second most reported fraud type in Australia, following identity fraud. This highlights the risks associated with multitasking during the busy shopping period.

Many Australians prefer online shopping to avoid crowded stores, with 49% citing dodging crowds as a reason for their choice. Other reasons include comparing prices online (48%) and shopping from home (37%).

As sales periods often attract scammers, PayPal has urged Australians to be cautious when shopping online. Reports indicate one-in-ten Australians have made online purchases through fraudulent websites, while 30% have been led to fake websites. A significant portion, 38%, reported contact from fake social media profiles.

Bonnie Brady, Consumer Shopping Expert at PayPal Australia, said: "One of the biggest risks of online shopping is encountering fake online stores, set up by fraudsters to steal money or personal information. In this day of AI, these fake retail sites can look very convincing. We all love the online sales and they're a great way to get a deal, but it's important for Australians to stay focused and ensure they're buying from legitimate retailers."

The research also notes that nearly half (45%) of Australians feel particularly concerned about being scammed, as scammers become more adept, using AI to craft more convincing scams. Notably, 91% of Australians have encountered a scam, with email, phone calls, and text messages being the prime channels.

Bonnie Brady added: "Boxing Day is a great way to grab a bargain and doing it online lets you avoid the crazy crowds and do easier price comparisons — particularly during this cost-of-living crunch. However, it's important to remember scammers are quick to exploit end-of-year sales with urgent or time-sensitive messages designed to pressure you. Take a moment, assess the situation, and trust your gut before hitting purchase."

PayPal has offered several tips for staying safe online, advising against clicking links in unverified emails and promoting direct access to store websites. They also suggest vigilance for imposters of favourite brands, advising reporting suspicious emails and checking for the 'https' in web addresses for security.

Consumers are encouraged to stop and consider before making purchases, especially if an offer seems too good to be true, and to use secure payment methods. These measures are vital for safe online shopping during the Boxing Day period, as Australians aim to secure bargains without falling prey to scams.