Fraudulent traders gather as many advance payments as possible and then disappear from the internet, leaving consumers without the products ordered.

The European Consumer Centre Network has issued a report entitled ‘Fraud in cross-border e-commerce’, which summarises problems reported to the network by individual consumers in EU member states. Its aim is to provide tips and practical advice to consumers on how to avoid falling victim to scams.

EU legislation protects consumers when purchasing goods and services online. However, very often, consumers still fall victim to various scams. From cases reported by consumers, the network was able to identify the most common cases of fraud.

Electronic goods, the purchase of used cars online, counterfeit products, allegedly free trials and online sales of tickets are some of the most typical scams reported.

Consumers are lured by cheap prices for items such as phones, only for the seller to demand further payment for delivery or customs tariffs. Other shoppers are caught out by notices advertising free trials of products or services, which only act as a front for a costly subscription service.

The report illustrates a number of typical situations consumers are easily trapped into. A widespread form of scam is that of fraudsters making use of fraudulent websites selling unbelievably cheap electronic goods that are never delivered.

The ‘trader’ may offer a significant discount on electronic products, such as smartphones or cameras, but does not offer the option of paying by credit card and says he requires a money transfer.

The aim of these fraudulent traders is to gather as many advance payments as possible and later disappear from the web, obviously leaving the consumer without the product.

Another common scam involves the sale of second-hand cars. The consumer may be attracted by an advantageous offer on a car seen on an advertisement portal online. After getting in touch with the ‘seller’, the latter provides the consumer with full information about the car and typically requests a pre-payment via a money transfer, after which he will disappear without delivering the goods.

The fraudulent sale of tickets online is another common problem. While it may be difficult to get hold of tickets for concerts or football matches, consumers should think twice before paying exorbitant prices for tickets that do not offer guarantees, such as knowing the seats you will be getting or when you will be receiving the tickets.

Consumers should only purchase from official sales channels. This can be done by clicking on the organiser’s website to check which sites are authorised to sell tickets. Try to avoid all other ticket sites.

With scammers becoming ever more inventive in their fraudulent approaches, the consumer should become ever more vigilant of daily scams. The report also analyses new forms of threats and makes consumers aware of some of the new areas of online fraud, which include online dating, animal rescue and those perpetrated via gaming sites and on mobile devices.

Tips and suggestions in the report include:

• Basically, if an offer seems too good to be true, the chances are that it is not;

• Conduct an internet search about the seller; a simple search should reveal any negative feedback posted by other users;

• Verify where the trader’s website is located. The domain name does not necessarily mean that a website is located in that particular country;

• Pay using a safe method; a credit card allows you to seek redress with the credit card company if the purchase goes wrong.

• It is also important to think about the way the trader’s website looks. It is important to watch out for websites that have only been registered recently, using incorrect language or asking for additional payment requests under false pretences, such as for insurance or customs.

• Be careful with your personal data.

Further information on this report is available at www.eccnetmalta.gov.mt/cross-borderecommercereport.

This information was provided by the European Consumer Centre Malta. The ECC-Net is a European network consisting of 30 European Consumer Centres representing EU member states, including Iceland and Norway. The network is co-funded by the European Commission and the EU member states. In addition to helping consumers in case of a complaint or dispute, members of the ECC-Net engage in joint projects to investigate specific business sectors.

odette.vella@mccaa.org.mt

Odette Vella is senior information officer, Office for Consumer Affairs, Malta Competition and Consumer Affairs Authority.