Online shopping warning for South Africans

With Black Friday quickly approaching, an increasing number of South Africans are choosing to do their shopping online this year – which also means that online fraud is becoming even more prevalent.

This was explained by Standard Bank’s digital and eCommerce head, Belinds Rathogwa, explained on Newzroom Afrika.

She said that Standard Bank has definitely seen an increase in the number of customers shopping online

“If we look at data comparing this time last year to the previous Black Friday, we saw a 17% growth in the transactions that are being done online,” Rathogwa said.

Similarly, Absa has also noted a significant increase in the total value of eCommerce transactions over the past year.

The bank reported that its total turnover increased 25% year-on-year in the first quarter, 16% year-on-year in the second quarter and 19% year-on-year in the third quarter.

“The data suggest that consumers are increasingly embracing the convenience, variety and efficiency of online shopping, which bodes well for retailers with an online presence ahead of Black Friday,” Absa noted.

The average value of eCommerce transactions has grown from roughly R350 to R430 between the beginning of 2023 and the third quarter of 2024.

However, the average value of physical retail transactions dropped slightly from about R350 to R340 during the same period.

“We’ve observed a shift towards higher online spending, with fewer but higher-value transactions indicating a preference for larger purchases online,” Chris Wood, Managing Executive for Product at Absa Relationship Banking, said.

“In physical stores, both total transaction numbers and turnover are growing steadily, though at a lower average ticket price, suggesting that consumers are making smaller, more frequent purchases.”

“This trend aligns with general consumer behaviour in South Africa, where shoppers show confidence but are mindful of purchase sizes.”

Absa added that it expects to see continued growth in total online and in-store spending, particularly around the Black Friday period.

Digital wallet usage is also expected to peak towards the end of Black November.

“Digital wallet usage, especially among Absa customers who use Google Pay and Samsung Pay, has surged over the third quarter of 2024 with an average transaction value of around R320,” Tshipi Alexander, Executive for Card Issuing and Rewards at Absa Everyday Banking, said.

Although Absa typically sees transaction volumes peak on Black Friday, recent history suggests that a significant portion of ‘Black Friday’ or ‘Black November’ spending still occurs on Cyber Monday.

Looking at Absa-issued cards specifically, average transactions per second peaked at 61 on Black Friday last year, dropping slightly to 57 per second on Saturday, and reaching 43 on Cyber Monday.

Online shopping fraud warning

Rathogwa explained that with this surge in online shopping, Standard Bank is also seeing an uptick in fraudsters who are looking for opportunities to defraud clients of their money

She said that phishing is a prevalent kind of fraud the bank is seeing at the moment.

“Phishing is one of those scams where you might receive an email or an SMS which is advertising a really great deal, one that’s almost too good to be true.”

In such an instance, you might be encouraged to click on a link that will take you to a website where you are required to put in your card details or your online banking profile details.

Rathogwa warned customers to be very very cautious of clicking on links, especially those that request any sensitive banking details.

Online good scams are another common type of scam Standard Bank is seeing.

With so many customers looking for good deals online during the Black Friday period, fraudsters take advantage of this by utilising websites and social media platforms.

These fraudsters will advertise really great deals and sometimes apply pressure by claiming that a product is running out.

However, after the shopper makes the payment, no goods are ever delivered.

Vishing is another increasingly popular scam at the moment. Shoppers receive a call from someone claiming to be from their bank, the tax authorities or the police.

“This kind of a person would create a sense of panic and uncertainty suggesting that there’s something wrong with the account and that the person should move the money into a different account,” Rathogwa said.

“Your bank will never ever ask you to move money from your account into an account that you don’t know.“

Sometimes, vishing takes a different form where the fraudster proposes an investment which will offer extremely high returns in a short period of time.

Rathogwa encouraged customers not to make an investment until they have verified the company and checked that they are registered with the Financial Sector Conduct Authority.

While consumers are faced with a number of risks when shopping online, there are also steps both banks and customers can take to mitigate against these threats.

“As banks, our role is to implement layers and layers of fraud and security measures,” she said.

For example, when you log into your online banking profile or conduct a transaction, you can see all of the layers of verification that are in place before you can do so, including things like biometrics, password protection and two-factor authentication.

“However, staying safe when you’re shopping online is a partnership between the bank and the shopper.”

Rathogwa explained that banks have a duty to educate their customers on suspicious activity they should be looking out for that could put them in danger of being defrauded, as well as the steps they can take when they find themselves in that situation.

When customers find that they have been the victim of cybercrime, they should contact their bank as soon as possible to report the incident, whether that means calling them, sending an email or using their banking app to do so.

“The basic thing is to report that transaction as soon as possible so that the bank can take measures to protect you.”