Asia has become a hotbed of online consumer fraud. As more global brands like IKEA enter the region, being vigilant is a top priority.
In October, Swedish furniture retailer IKEA opened its second branch in the Philippines. Crucially, this was one of its large-scale plan and order sites. This is where people can not only buy goods, but also plan their home with the help of experts. It signals the brand’s long-term commitment to the country and Manila. Yet with this comes a glut of unwanted attention, which arrives in the form of unwanted shopping scams.
The Appeal of IKEA
IKEA is one of the world’s foremost furniture brands. This expansion has increased its brand visibility, something that scammers want to exploit. This is commonplace when major global brands enter new markets such as the Asia Pacific region, as IKEA has done.
This will lead to a rise in fake IKEA websites impersonating the brand. Fake websites are now rife and can look and seem exactly like their legitimate counterparts. The problem is that they are not, and often do not deliver the goods paid for, or use the website to steal personal details, including financial information. By using the branding and logos of well-known companies, they seem above board, but are a front for criminal activity.
By no means are fake websites the only scams, and by no means are they targeted at the Filipino audience alone. The website bedrageri.info has a trove of information for Swedish consumers, taking them through some of the common scams in Sweden. These range from phishing scams to SMS fraud. By following their advice, consumers can stay safe when visiting online retail and entertainment operators, including online casinos.
How to Check for Legitimate Websites
Start by double-checking the website address. Very often, they will have minor differences from the legitimate company website address. It may be something as simple as an extra letter in the name. Domains can also give them away. Very few retail sites have .org or .net domain addresses. If you have a physical media product, like a catalogue, cross-reference the address with that.
You can also type the web address into a few search engines. Scroll down, and you may start to see warnings that it is a scam site. Third-party review websites can also help with this.
Scam websites may often, though not always, have lower prices. This is to lure in customers who are hungry for a bargain. If the prices and offers seem too good to be true, then they probably are.
If you really have to buy something from a website you find, and you are sure it is not a scam, then always avoid bank transfers. Credit and debit cards have fraud coverage for this, so if you are a victim, you have a better chance of claiming the money back.
When you do find these websites, it is important that they are reported. This depends on the place and country you are located in. For example, the United Kingdom has a website called Action Fraud, which is related to its National Cyber Security Agency. In the Philippines, they can be reported to the Philippine National Police Anti-Cybercrime Group or the National Bureau of Investigation Cybercrime Division.
Increased Shopping Scam Numbers in Southeast Asia
The Philippines has the highest rating for online shopping scams across dozens of economies, according to the Asia Scam Report. It surveyed 20,000 respondents about their experiences across Vietnam, China, Thailand, Hong Kong, Taiwan, Indonesia, South Korea, Japan, Malaysia, Singapore, and the Philippines. The scam rate here was 35.9%, compared to second-place China with 27.2% of people falling victim to scams.
This may be down to a lack of cybercrime knowledge in the country. The survey found that people in the country respond quickly to scammers’ demands. In 2023, the country was recorded as losing $2.8mn million in shopping scams in nine months. The top method for fraud was the targeting of people through text messages, but social media and even landline telephone calls played a part.
A further survey by Experian showed that around a quarter of consumers across the Asia Pacific region have fallen victim to an online fraud scam. China and India came out the worst, with around 29% of consumers there falling victim to scams. Oddly, only 9% of consumers in China are concerned about online fraud scams. The biggest location for these events was social media. While the six markets it surveyed did not include the Philippines (Australia, China, India, Indonesia, Malaysia, and Singapore), it highlights how poor awareness is in the region.
This should not put you off shopping online. However, you should increase your vigilance. These websites are getting harder and harder to detect, with operations that look and seem like the real thing. Keep yourself protected and understand that if an offer seems too good to be true, it probably is.
