Fake products and service scams rose 25% in July, says Netsafe

Consumer products and service fraud scams rose 25% in July compared with the previous month, according to online safety organisation Netsafe.

The scam typically involves scammers creating misleading or fake listings for products or services on trusted platforms – such as marketplaces or classified ads – and waiting for someone to engage with it.

This can include online shopping scams, bogus furniture movers and escort services.

Reports within the scam type increased from 136 in June to 171 in July, Netsafe said.

Netsafe said the increase in July was led by social media marketplace sellers claiming to sell non-existent products, as well as fake online gambling services.

A Netsafe spokesperson said third-party reviews go some way to verifying the legitimacy of a product or service.

“When you’re online, you don’t have to be alone. You’ll find some of the most vocal people on the internet who have shared their experience with different websites and sellers.

“Look for real reviews published by third parties to help give you an idea of what to expect before parting with your money.”

In June, government agency National Cyber Security Centre (NCSC) said Kiwis lost a reported $7.8 million in cyber incidents in the first quarter of the year.

Ten Kiwis lost more than $100,000 each over that period.

Financial losses rose 14.7% compared with the previous quarter ($6.8m).

However, only a small portion of losses is typically reported to online safety organisations.

Netsafe’s tips if you’ve been scammed on Facebook Marketplace:

• Document everything: Keep records of all transactions, messages, and details.
• Report the scam to Facebook: Use Facebook’s reporting tools to report the scam and the
• user involved.
• Contact your payment provider: Seek assistance from your bank for fraudulent transactions.
• Raise awareness: Inform others in your buying and selling groups about the scam.
• Report to the police: Report the scam to your local police station.