As festive season shopping traffic for this year kicks off with Black Friday specials, South Africans are warned not only to avoid impulsive spending and financial stress, but to be vigilant for heightened crime and fraud.
Despite the cost of living crisis impacting South Africans this year, Black Friday sales are expected to remain buoyant as consumers take advantage of the deals on offer.
“Last year, BankservAfrica logged a total of 1.2 million transactions worth over R1 billion on 3D-Secure*, BankservAfrica’s online card authentication service alone, representing a 42% year-on-year growth,” says Martin Grunewald, the chief customer officer at BankservAfrica. “Based on the annual growth observed, we’re expecting to see another good year.”
Ester Ochse, the product Head at FNB Integrated Advice says, “It is important for consumers to be intentional with their budget this Black Friday and base their purchases on what they can really afford. Having a structured ‘Black Friday’ purchase plan will help in finding those key items that they really need and will save them a bit of money. This will put them in a better position that will not cause financial stress down the line.”
Ochse shares these tips to help consumers navigate the Black Friday deals:
- Build a list: of items that you would like to purchase during this time, then categorise them into three categories: Needs, wants and nice to have. The needs can be items such as stationary for next year or groceries. Wants will be items that you will use but they form part of discretionary spend normally, examples are clothing, and cosmetic items. Then the last category will be nice to have, these will be things like a new smart TV or air fryer.
– Set a budget: Look at how much you can comfortably afford without needing to take credit to purchase the items. This will stop you from overspending and feeling financial burden. Now you need to allocate the set budget on the items that you listed above. Starting with the needs, then the wants and then the nice to haves.
– Do your research: This needs to start earlier in the year so that you are fully aware of how much an item normally costs, also compare between different retailers. This will ensure that what you are spending on is at a discounted price. Look at common retail websites and sales advertisements before start shopping. This will assist in allocating your budget as well.
– Use your loyalty programmes: You can use this to pay for some of your shopping items as well as looking for travel deals, if that is on your list.
Shop safely
Be vigilant when shopping.
The cybersecurity company NordLayer analysed Black Friday-related keywords on the dark web and discovered that hackers prepare for the shopping festivities months in advance.
Carlos Salas, a cybersecurity expert and head of web engineering at NordLayer, said the most important action in helping to battle various scammers is the ability to recognise them by staying informed.
Salas explains: “Black Friday has become a breeding ground for scams and fraudulent activities on the dark web. Cybercriminals are also gearing up to exploit the excitement and vulnerabilities of consumers and businesses.”
He adds, “Companies might experience double the risk because frauds often copy their websites or send phishing emails on behalf of trustworthy businesses, creating reputational risk.”
Below he shares the five most popular Black Friday scams businesses can expect this year:
– Phishing scams. Phishing attacks are the most prevalent type of attack, even on Black Friday. Scammers use a sense of urgency and pressure people into making fast decisions without paying much attention to the details.
– Fake websites. Scammers create fake online stores that mimic the appearance of well-known retailers. They offer products at incredibly low prices to lure in shoppers, but they never deliver the goods, leaving people without their purchase and money. Be mindful of websites that misspell the original name of the domain, use numbers instead of letters, or have a subdomain in the website URL code.
– Gift card scams. Be cautious when buying gift cards from third-party sellers, especially online. Scammers may sell counterfeit or empty gift cards, leaving them with a worthless purchase.
– Fake order confirmation. Be careful with messages, phone calls, and emails containing information about a delivered package or confirmed order that you can’t remember making.
– Social media scams. 88% of all purchase scams are obtained through social media. Think before you click, and don’t chase “too-good-to-be-true” deals.
Meanwhile, Budget Insurance said this week it had noticed a 30% spike in Goods In Transit insurance claims on Black Friday. The week that follows Black Friday, including Cyber Monday, were also red flags for courier companies.
Tyrone Lowther, the head of Budget Business Insurance, says, “Since the pandemic, most retailers are offering Black Friday deals both online and instore. This is a win for those wanting to avoid the chaos surrounding the annual shopping frenzy.
“Scoring a deal doesn’t necessarily mean you’ll score the goods though as courier vehicles (vans, cars, trailers, trucks and motorbikes) containing Black Friday shopping hauls are targeted by criminals.”
Budget Insurance says that the hijacking of courier vehicles on Black Friday is of great concern.
“In addition to the hijacking risk, goods are also being taken by force in armed robberies. The items most coveted by criminals over Black Friday include cellphones and electronic equipment like TVs, gaming consoles and computers,” says Lowther.
In 2022, the value of goods stolen from courier vehicles on Black Friday increased by 20% from 2021, which illustrated consumers’ online shopping comfort levels.
BUSINESS REPORT