With online shopping becoming a top choice for consumers, it's essential to know how to navigate the virtual alleys of markerplaces while avoiding the pitfalls. — AFP
In the dynamic landscape of Malaysia’s flourishing digital world, online marketplaces have become indispensable hubs for buying and selling, transforming the way Malaysians engage in commerce.
The conveniences of online shopping have become a beacon for those seeking efficiency, variety and accessibility.
As Malaysia’s ecommerce sector rapidly emerges as a powerhouse in South-East Asia, its growth is surpassing that of traditional markets in the region.
However, amidst the convenience and vast array of options, a lurking threat persists in the form of online scams, casting a shadow on the seamless experience.
While numerous scams plague popular online marketplaces, their owners and authorities have been taking steps to safeguard both buyers and sellers against such insidious practices.
Amidst the convenience and vast array of options, a lurking threat persists in the form of online scams, casting a shadow on the seamless experience. — Image by katemangostar on Freepik
A press release by online marketplace Mudah.my and the Malaysia Royal Police (PDRM) earlier this year stated that ecommerce scams saw a rapid increase.
Data from the Commercial Crime Investigation Department (CCID) of PDRM revealed that the number of cases increased from 3,512 in 2019 to 5,850 in 2020.
This upward trend continued, with 9,545 cases in 2021 and 9,258 in 2022.
What’s worse is that the losses due to ecommerce scams have also been rising exponentially, from RM28mil in 2019 to RM140mil in 2022, hitting RM144.8mil earlier this year in August.
Fraud flourishes in the boom
Online marketplaces have revolutionised the shopping experience, offering a vast array of products at the fingertips of buyers.
A press release by online marketplace Mudah.my and the Malaysia Royal Police (PDRM) earlier this year stated that ecommerce scams saw a rapid increase. — AP
With just a few clicks, shoppers can effortlessly explore an extensive catalogue of goods, from the latest fashion trends to cutting-edge gadgets, all from the comfort of their homes.
The convenience extends beyond brand-new items, as these platforms provide a thriving marketplace for used goods too.
Whether it’s vintage clothing, good as new electronics, or rare collectibles, buyers can engage in sustainable shopping practices, and sellers can find new homes for preloved items.
What’s more, the elimination of geographical constraints has allowed consumers to access a global marketplace, broadening their choices and enabling them to make informed decisions based on reviews, ratings and competitive prices.
Additionally, the seamless and secure payment systems offered by these platforms contribute to the overall convenience, making transactions swift and almost always hassle-free. Almost.
The flourishing ecommerce market has, sadly, opened the floodgates to an abundance of scams, posing significant challenges for both buyers and sellers. — AP
The flourishing ecommerce market has, sadly, opened the floodgates to an abundance of scams, posing significant challenges for both buyers and sellers.
A string of deceptive practices has mushroomed across popular online marketplaces, tarnishing the trust that users place in these platforms.
A scam by any other name
In October, The Star reported that between January and August this year, the police had arrested 3,659 suspects in connection with ecommerce scams.
CCID director Comm Datuk Seri Ramli Mohamed Yoosuf had said that cheating cases were becoming more challenging to curb as technology had allowed scammers to go online.
Indeed, payment frauds loom large, with scammers manipulating transactions through fake payment receipts or soliciting advance payments without fulfilling their end of the bargain.
A string of deceptive practices has mushroomed across popular online marketplaces, tarnishing the trust that users place in these platforms. — dpa
Chiu May Ann (not her real name) started using the online platform Carousell last year, and her first few transactions were disastrous.
“I was trying to sell an office chair, and to my surprise, I got so many offers, which was quite exciting at first,” she shares.
“These potential buyers all tried to woo me off the platform, saying it would be much easier to ‘talk’ on WhatsApp.
“Two of these buyers wanted me to deliver the chair to them in different parts of Malaysia and said they had their own delivery provider with which I had to register.
“Something seemed off about their tone of communication, so I decided to check with a friend who advised me to inform Carousell, which I did, and soon after these ‘buyers’ were suspended.
“After that, I was so afraid to accept any offers, even genuine ones! You can’t blame me for feeling paranoid because it seems like someone is getting scammed almost every day!”
Another prevalent scam involves the misrepresentation of products, where sellers utilise deceptive tactics such as using stock images or providing inaccurate descriptions to lure unsuspecting buyers.
For instance, an office shirt, marketed as a 100% premium cotton garment, is ultimately revealed to be a blend of synthetic materials upon closer inspection, or a supposedly “authentic leather” handbag is unmasked as PVC, contradicting the seller’s claim of premium material.
Online marketplaces have revolutionised the shopping experience, offering a vast array of products at the fingertips of buyers. — AFP
Lecturer Ann Raj remembers a couple of occasions when she was thrilled about finding a great deal online and then disappointed when the product arrived.
“I do most of my shopping online. I remember buying a ball of cotton yarn for macrame and I was so happy to find it was really cheap!
“That should have made my spider sense tingle, but no, I went ahead and placed an order anyway. What arrived was a spool of yarn about 3cm high – like something out of Honey I Shrunk The Kids.
“Another time I saw a Christmas decorative item – a Santa who could climb a ladder up a Christmas tree – and lo and behold, the same item was available for a quarter of the price from China! What arrived, however, was Santa on a ladder, but the mechanism didn’t work.
“I have also bought a bunch of solar garden lights that have never worked. And I am usually too lazy to return them. I have since learned my lesson and try as far as possible to choose local sellers instead.”
Suchit Jacob, business development director of a medical device manufacturer, laughs about the time he ordered an anti-static dryer from a seller in China on a local shopping platform for RM700.
“After two weeks, what arrived was a tiny little package with a small rubber duck the size of my thumb inside!” he says, admitting to having been flabbergasted at the time but now more amused than upset.
“When I filed a complaint, the seller was removed from the platform, and I managed to get a full refund in due time.”
Battling scams is an ongoing fight
While most online marketplaces implement preventive measures and enhance security wherever possible, there’s only so much they can do.
The onus remains on users to exercise caution, stay informed and adopt protective strategies when navigating these digital marketplaces to ensure a secure and trustworthy online shopping experience.
Carousell, for example, urges its users to review each other’s profiles as well as read reviews and ratings before confirming a deal.
As marketplace owners and authorities proactively unveil strategies to combat these insidious practices, users must understand that they play a pivotal role in ensuring their own safety. — Image by storyset on Freepik
“To ensure a safe transaction, we encourage users to keep their conversations on the app, as we have systems in place that can help detect fraudulent behaviour,” says a Carousell spokesperson. “Users are encouraged to report any suspicious listings and users to us via the ‘Report Listing’ and ‘Report User’ feature that’s available on both the web and the app.
“Our team will review these reports and work with the authorities to exchange information and ban users who engage in fraudulent activities from our platform.”
“While we understand that many of our users prefer to arrange with each other directly on how to deal in our general goods categories, we have also recently enhanced secure on-platform payment features in Singapore and Malaysia to create a one-click checkout system on the platform,” says the spokesperson.
This checkout system offers options to pay securely via several popular payment methods and includes buyer protection policies that cover cases like not receiving the items (for buyers who opt for tracked shipping) or getting something significantly different from the description.
Carousell also employs an in-chat safety system, advising against taking conversations off the platform and providing bite-sized safety tips, direct messages and social posts.
Its artificial intelligence (AI) and machine learning systems also trigger warnings during potentially risky situations. Additionally, it also uses dispute banners within chats to notify users of profiles under review or restrictions.
To further educate users, regular campaigns are run on scam trends and safe transaction practices, such as phishing scams, a common peril while conducting online transactions.
Phishing scams are deceptive attempts to trick individuals into divulging sensitive personal information, such as usernames, passwords, financial details, or other confidential data.
Typically carried out through fraudulent emails, messages, or websites, phishing scams often mimic trustworthy entities, such as banks, government agencies, or popular online platforms.
The goal is to convince recipients to provide their information willingly, usually by clicking on malicious links, entering data into fake forms, or responding to seemingly legitimate requests.
The perpetrators then use the obtained information for various malicious purposes, including identity theft, financial fraud, or unauthorised access to accounts.
Awareness and caution are crucial in recognising and avoiding phishing scams to protect personal and financial security online.
Gaurav Bhasin, CEO of marketplace Mudah.my, says that the platform has implemented measures to detect and prevent phishing attacks by continuously monitoring user interactions and flagging any suspicious activities.
“Additionally, we employ cutting-edge technology and algorithms to analyse patterns and identify potential phishing elements.
“Regular security audits and updates are conducted to stay ahead of emerging threats. User education is also a key component of our strategy.
“We regularly provide information and resources to help our users recognise and avoid phishing attempts,” Gaurav says.
Other marketplaces, such as Shopee, Lazada and Facebook, all have web pages dedicated to educating their users too. But how many of us actually take time to check them out and keep ourselves up to date?
Awareness and caution are crucial in recognising and avoiding phishing scams to protect personal and financial security online. — Dreamstime/TNS
Gaurav says that Mudah.my’s security features have evolved to address different tactics used by scammers that are seen on its platform, which include identifying and blocking suspicious ads and messages.
Mudah.my has also introduced other measures, such as an Advanced Queuing System using both AI and manual reviews to identify, review and block advertisements, and device ID detection to identify fraudsters’ devices.
“We also have WhatsApp Fraud Control, through which we conceal user telephone numbers to help prevent fraudsters from making use of communication channels that are not monitored by Mudah.my,” he says.
Earlier this year, Mudah.my also teamed up with PDRM for its #MudahDanSelamat campaign.
“This campaign was aimed at raising awareness and encouraging users to exercise vigilance against scammers.
“We work closely with PDRM by alerting them to common scam tactics and assisting PDRM with any information they require while investigating reports that involve Mudah.my users.
“Our platform also provides a link to the Semak Mule app and website for users to check if a phone number and bank account are linked to any suspicious activity.”
Gaurav explains that in the event of a security incident or suspected fraudulent activity, Mudah.my has implemented a set of processes designed to address and resolve such issues, with a focus on minimising the impact on users.
“Users who promptly notify us of incidents are then managed by our dedicated team, which assesses the situation, conducts a thorough investigation, and takes necessary measures to contain and neutralise the situation,” he says.
As marketplace owners and authorities proactively unveil strategies to combat these insidious practices, users must understand that they play a pivotal role in ensuring their own safety.
The exponential growth in ecommerce scams and the substantial losses incurred further highlight the pressing need for heightened vigilance amongst users.
The importance of thorough research, secure payment methods, safe meet-up practices, guarding personal information, and staying informed cannot be overstated.
By adopting these protective measures and promptly reporting suspicious activities, users contribute to the collective effort to create a safer online marketplace experience for everyone.
In the face of evolving challenges, continuous awareness and cautious transactions remain paramount to fostering a trustworthy and secure digital commerce ecosystem.
If you suspect you’ve been a victim of a scam, you can call the National Scam Response Centre (NSRC) at 997 (8am to 8pm) and lodge a police report at any police station.
