Black Friday Boom: online on the rise but so is fraud

With Black Friday just around the corner, South Africans are increasingly turning to online shopping for their holiday deals. This shift towards e-commerce has brought both convenience and a surge in online fraud. As more consumers opt for the ease and accessibility of shopping from home, fraudsters are also becoming more sophisticated in their methods. The rise in online shopping has, therefore, created a double-edged sword for consumers: the opportunity to snag great deals, but with the risk of falling victim to digital scams.

A Digital Shopping Spree

One key indicator of the rapid growth in online shopping is the significant uptick in digital transactions. Belinda Rathogwa, Standard Bank’s head of digital and e-commerce, revealed that the bank has witnessed a 17% increase in online transactions compared to the previous Black Friday. This surge aligns with a broader trend across the financial sector, indicating that South Africans are embracing the ease and convenience of online shopping more than ever before.

Absa has also reported a notable rise in e-commerce transactions. The bank's total turnover increased by 25%, 16%, and 19% year-on-year in the first, second, and third quarters, respectively. This growth underscores the continuing shift towards online retail. As more South Africans prioritize e-commerce, the digital landscape is evolving, and traditional brick-and-mortar stores are feeling the pressure.

The Evolving Shopping Landscape

The average value of e-commerce transactions has climbed from R350 to R430 between the beginning of 2023 and the third quarter of 2024. This indicates that consumers are not only shopping more online but are also willing to spend more per transaction. In contrast, the average value of physical retail transactions has slightly decreased from R350 to R340 during the same period, suggesting that while in-store shopping remains relevant, it is not growing at the same pace as e-commerce.

Chris Wood, Managing Executive for Product at Absa Relationship Banking, explained that consumers are shifting towards larger online purchases. He noted that physical stores are experiencing steady growth in transaction numbers and turnover but with lower average ticket prices, suggesting more frequent, smaller purchases. The online shopping shift has resulted in consumers opting for more substantial buys, especially when it comes to big-ticket items or holiday shopping.

The Rise of Digital Wallets

Digital wallets are also gaining popularity, especially among Absa customers using Google Pay and Samsung Pay. The convenience of paying directly from smartphones is particularly appealing, with the average transaction value for these digital wallets reaching around R320 in the third quarter of 2024. The growth of digital wallets can be attributed to their ease of use and the increasing level of trust consumers have in mobile payment systems.

This trend has been further accelerated by the availability of loyalty programs, special discounts, and instant payment features tied to digital wallets. As digital wallets become more integrated into the everyday shopping experience, they are reshaping how South Africans shop, making it even easier to complete purchases online with minimal friction.

Staying Safe Online

While online shopping continues to boom, it is essential to remember the risks associated with digital transactions. As more people dive into the world of e-commerce, online fraud has also seen a sharp increase. Criminals are becoming increasingly skilled at tricking consumers through phishing emails, fake websites, and fraudulent payment gateways. Therefore, it is crucial to take steps to protect yourself.

Here are some vital tips for safe online shopping:

1. Strong, Unique Passwords: Always create strong, unique passwords for each online account. Avoid using the same password across multiple sites.

2. Secure Wi-Fi Networks: When shopping online, avoid using public Wi-Fi networks. Public Wi-Fi is often unsecured, making it easy for cybercriminals to intercept your data.

3. Verified Websites: Always shop on reputable websites with secure payment gateways. Look for HTTPS in the URL and ensure the site has an up-to-date security certificate.

4. Regular Software Updates: Keep your devices and software up to date with the latest security patches. This ensures you have the latest protections against known vulnerabilities.

5. Be Wary of Phishing Emails: Be cautious of suspicious emails that request personal information. Always verify the sender and avoid clicking on unfamiliar links or downloading attachments.

6. Monitor Your Accounts: Regularly check your bank statements and credit card activity for any unauthorized transactions. Quick action can help minimize the damage in case of fraudulent activity.

In addition to these tips, consider using multi-factor authentication for your online accounts to add an extra layer of security. This will help protect your personal information from hackers who may have obtained your login details.

Conclusion

The rapid growth of online shopping presents both exciting opportunities and new challenges. Consumers can enjoy the convenience of shopping from the comfort of their homes, taking advantage of deals and discounts that would otherwise require hours of in-store browsing. However, this digital shift also requires increased vigilance to protect against the rising tide of online fraud. By staying informed and following best practices for cybersecurity, South African shoppers can navigate this evolving e-commerce landscape safely and confidently.