The festive season has officially started and so has the sale season for ecommerce brands. It is that time of the year when brands go gaga over their ad spends to attract their ideal audience. Along with the advertisers, the fraudsters ramp up their practices to exploit the brand’s efforts.
And when seen in numbers, the impact of these fraudster activities is alarming. According to an analysis, the cybercrime losses in India have more than doubled from Rs 69.68 crore in FY23 to Rs 177.05 crore in FY24.
On the surge in fraud during the festive season, the nature of fraud remains unchanged but it grows significantly in scale.
During this period, brands are under immense pressure to achieve growth, leading to a situation where demand spikes while supply remains limited. This imbalance creates a 'bubble' that encourages fraudsters to exploit the market by increasing fake supply through bots and other fraudulent activities.
Let’s understand some of the common types of festive sale fraud in India:
Fake Discounts and Offers on WhatsApp
During the festive sale period, the brands focus on targeting the places where their audiences are hanging out. Affiliates also try to bring maximum eyes to their promotional activities to increase their commissions. Based on an analysis done by mFilterIt, some fraudulent affiliates take a different route. They use platforms like Telegram and WhatsApp to offer small rewards such as cashback, points, gift cards, etc for meeting their KPIs like clicks, app installs or sign-ups.
Users take action in return for an incentive and not out of genuine interest. Therefore, there is a high volume of low-quality traffic, installs or sign-ups that do not lead to an actual engagement or revenue for the advertiser. In most cases, either the user loses interest in the app, leading to low lifetime value of the user or they don’t get the incentive and feel cheated by the brand. In both cases, the brand’s reputation gets hampered.
Phishing Scams on Social Media and Messaging Platforms
The festive rush is the ideal time for scammers to pass the vigilance checks and fool genuine users. Cases of using brand names to create fake websites or social media platforms is one of the common ways for fraudsters to scam people. They use these websites and pages to lure users with “too good to be true offers” and steal their personal details and account details.
Gift Card Frauds
The gifting spirit during the festive season is misused by fraudsters with gift card frauds. Fraudsters send gift cards using the names of legitimate organisations. Once the user clicks on the link, it leads to a malicious website where they are required to provide their personal information to claim the gift card. These techniques are usually practiced stealing personal and financial information of users for misuse in other fraudulent activities.
Fake Ecommerce Websites, Emails and Ads
The festive season is the peak time for brands to be on ecommerce websites and be seen by their relevant audience. However, fraudsters take this opportunity to lure shoppers into clicking on phished websites of legitimate brands and e-commerce websites via emails, ads etc.
Once the user clicks on this link, they are redirected to a fake website where they enter their personal and financial information. This information is further misused to commit other frauds.
Safety Tips for Shoppers During Festive Sales
Here are some of the tips for shoppers to stay safe during the festive sales:
Navigating Festive Sales Safely
This festive season, opt for vigilance and ensure to not be another victim of an online scam. Before clicking on a link or making a payment, check the authenticity of the link and the offers. By following the mentioned online safety practices, consumers can significantly reduce the risk of falling victim to digital fraud. It’s crucial for the shoppers to be proactive in protecting their personal information and financial details. With awareness and caution, everyone can enjoy a safe and joyful festive shopping experience.
_20241224104546_original_image_43.webp)
_20240720151751_original_image_12.webp)
