The Festive season is upon us! A time of celebration and giving of gifts! 

As a Business, an Employer you might be planning a Christmas party and the giving of gifts to employees and Business Associates.

There are associated costs, and you might not be sure what falls under the ATO Rules. Here are some helpful tips. 

Christmas Parties and Gifts 

If your business holds a Christmas party:

• on a working day, on your business premises, and only for your current employees, you don’t pay fringe benefits tax (FBT) for the food and drink
• off your business premises, or the party includes associates of employees (such as their partners), you don't pay FBT if the party is a minor benefit – that is, the cost for each person is less than $300 and it would be considered unreasonable to treat it as a fringe benefit
• that includes clients, you don't pay FBT for the costs relating to the clients.

If you give your employees a Christmas gift, you don't pay FBT if the value of the gift is less than $300 per person and it would be considered unreasonable to treat it as a fringe benefit.

If the Christmas party is not subject to FBT, you can't claim income tax deductions for the cost of the party.

Have questions, want guidance or assistance contact Blackburn Accounting.  

We can help you with tax matters, decorations and gifting of gifts. 

Read the story! You decide!

The Big Mac Index so described by the Economist has seen the price of McDonalds burgers more than tripled in the 40 years of reporting. And they are still in the business of selling burgers to the masses!

What is this index? The Big Mac Index published since 1986 measures the cost of a Big Mac in different countries and indicates the difference in purchasing power parity between them.  

How did McDonalds do it!

McDonalds generic competitive and growth strategies are designed to maximize efficiency, minimize costs and ensure profitability. Its pricing strategy includes price bundling along with psychological pricing that encourages customers to buy more products. Its a formulae for success as profits indicate.

 A different approach is used by another mega US retailer. Their strategy aims to keep prices steady following a business model, described by the company’s finance boss as ‘arrogantly simple’, to hook shoppers by offering high-quality products at the lowest prices.’  The company attributes its enduring success to this approach.  

What’s your Business model?  What Strategies do you use to be competitive!

During this period of inflationary pressures and price increases running a successful Business is challenging for most, whatever your industry.

You may be one of them, a small Business owner, faced with the rising costs of doing business. Increased costs for supplies, commodities, labour and energy. How do you tackle setting price points that keep customers happy while still maintaining reasonable profit margins.  It's push - pull economics! 

For example, a recent news headline ‘price hike on the menu for Aussie pub classic’ suggests possible further price increases to menu favourites Burgers, nuggets and chicken fillets. This follows as a major poultry producer warning of higher production costs that will need to be recovered.

Similar sentiments expressed by a local hairdresser, saying he was forced to absorb rising costs to avoid passing them onto his customers and possibly losing them as price can be the difference between someone coming to his salon or going somewhere else. He cited increased cots of electricity, rent, products and superannuation, and is the hardest time we've ever known at running a business. 

 Are there any answers, solutions! 

Yes, consider these Strategies.

Look at margins: Most retailers boost profits by marking up prices. Short term cost impacts can be managed thru margin initiatives, but these need careful planning to avoid losing customers.  Engaging with your customers is critical during these times

Case Study

Scenario 1:  Dad has verbally told his children that the Business will be left to his son, and his personal assets will go to his daughter. No one wants to think about Dad leaving the Business or his eventual passing away, so the sensitive conversation about formal arrangements is avoided. We are family, all will be ok! 

In reality, without a legal document, this verbal arrangement can be fraught with problems. The family assumes the Business will pass on according to the will, not realizing it’s legally separate and governed by a family trust. Dad does not own the Business directly. This leaves a fragmented and unplanned outcome for all concerned.

Need advice or if you want to have the hard conversation, we are here. Contact Blackburn Accounting, your Family Business Specialist, we can help you with Succession Planning, Financial structures, Strategic Planning and more! 

Scenario 2:

Dad, Jack, founder of the Business, a local hardware store, recognises the importance of Business structures in providing a clear framework for the Business unit.

Structure and the right structure are critical to ensure the best for all concerned. This should reflect your family’s values, decision-making style and strategies for growth. It’s more than just tax matters, it should provide protection, legacy, relationships and control. 

Types of Business structure include: 

• Sole Trader 

• Partnership 

• Company 

• Trust  

Considerations when setting up will depend on your personal circumstances, the type and size of your Business and how much you want to grow or expand the Business, who is involved. Considerations include: 

• Asset protection 

• Any ongoing costs 

• How the entity will be taxed regarding income, capital gains and land tax 

• Control and succession 

• Exit strategy 

• Flexibility to adjust as circumstances change 

Your Business structure determines your: 

Case Study: Scenario 1: 

A good news story!

A Family Business of 50 years is enjoying the benefits and reaping the rewards of a smooth transition as the next generation takes the reins.  

The founders, parents Mike and Mary, are stepping back confident that their early Succession Planning is paying off. Their legacy is embedded. A local Business, the brand remains family-owned, WA-based, providing locally crafted goods. And the next generation is passionate about keeping it that way. It is Business as usual for all concerned, staff, customers and suppliers. Everyone is a winner in this situation. 

Scenario 2: 

Even the most successful of Businesses and Business Leaders will share their experiences of setbacks, mistakes and sometimes failures along their journeys. The common thread is their willingness to speak of ‘lessons learned’ that turned these stumbles into opportunities. Opportunities for growth, improvement and overcoming challenges.

Capturing lessons learned provides a valuable opportunity to reflect on past events and experiences and identify areas for improvement. This allows Business and Teams to gain insight and understanding into what worked well and what didn’t.  

Most importantly how and what can be done differently next time to avoid making the same mistake twice. 

3 Reasons Why Lessons Learned are Important 

1. Avoids Reinventing the Wheel – saves money! Reflect, evaluate and record lessons learned to guide the future. Essential to document the tools and techniques used to help you and others save time and money going forward. 

2. Don’t Make the Same Mistake Twice – it’s been said a million times before but still resonates.  To quote Albert Einstein ‘if we cannot remember our past mistakes and avoid them, we are simply going to make the same mistakes again.’  The key is to document the lessons learned, sharing and revisiting them to ensure the same mistakes are not repeated. 

3. Reflection – provides the opportunity to review both ‘failures and successes’.  It's important to relive success as a reminder of how to succeed and how to build on that.  Analyse what made the venture a success to take to future projects.

No matter what the Project, Business venture, or Political Campaign undertaking a Lessons Learned exercise is invaluable in understanding what went wrong, and critically how to avoid making the same mistakes in the future. 

You are keen and ready to bring your brilliant idea to reality, start your own Business, or you may already be operating. The importance of Market Research can’t be stressed enough! It is a cornerstone for success! 

Researching a new product, service or Business idea helps you consider the pros and cons and gain a better understanding of your success rating.  

It is critical to informed decision-making, helps understand your customers' needs, and provides insights to reduce risk. It acts as a guide to ensure services, products and marketing efforts align with actual market influences. Importantly, it is used to gain a competitive edge.  And who doesn’t want that! 

Market Research involves a systematic process of collecting, analysing, and interpreting information about a ‘market’ (industry). This gathers data including consumers, customers, industry trends and competitors. Without this research, you can be using guesswork, assumptions, and intuition rather than facts to shape data-driven thinking and strategies.  

The 4 Principal Purposes of Market Research are

Are you losing the art of connecting with meaning and feeling!  

With our communications predominately driven by technology now more than ever is there a need for connecting effectively. 

Connecting! it's more than clicking a button!

And in a time when we are experiencing challenges every day, many testing our capabilities and vulnerabilities, meaningful connections are vital. It’s all about feelings, and when under continual pressure it is easy to feel alone, disjointed and isolated. To overcome this we need to connect and share experiences with others. Importantly, understand the power of meaningful connections, what, why and how they enhance our lives!

Meaningful connections impact our mental and emotional well-being. This is about our need for human connection, a sense of belonging, connection and happiness that underpins our mental health and well-being. 

4 Features of a meaningful connection are! 

1. Going beyond the scripted dialogue, trivial talk.  It’s about having authentic conversations, being genuine by sharing our stories and experiences.  It's about putting in the effort to build and improve relationships, our willingness to be involved, ’show up’ and engaging with empathy. These are the ingredients for better connections. 

2. Listening, actively listening is the key to authentic connections. Hear what others have to say, their opinions. Paying attention and being prepared to acknowledge others' points of view and beliefs and being respectful and understanding of our differences.   Read more...

The importance and power of a positive Business image can’t be understated or underestimated.  This is how the world, and your customers, see you, and relate to you or not.  

No matter if you are a corporation giant or family small Business corner store, it's important to show what you stand for and what you stand by. Your Business principles, core values, and goals.  Your public image should be reflective of your Business.

Why it's important to build a strong brand image and identity

• A strong brand identity helps raise awareness about your services and products to customers and potential prospects. 
• Creating a positive Business image is vital as public perception helps build a customer following.
• Your corporate identity, brand reputation, and how you are perceived by your customers, potential clients and community are critical to your success. 

And in a time of economic challenges, and market uncertainty consumers are looking for Businesses they can trust, believe in and respect. 

Customers want a feeling of stability and security during these turbulent times. 

In this environment, your brand IMAGE is crucial to building loyalty, positive relationships, relationships that see customers coming through your door and returning for more! Your words and actions need to resonate with your customers and deliver what you promise. Personal and Business credibility is key to your success.

The alternative, as we often see, is damaged reputations due to various misadventures that have customers abandoning you.

How to Build a Strong Brand Image 

Follow these steps: 

Small, medium or big Business, the importance of understanding your Market can't be stressed enough!  

It’s crucial to Business success, whatever your Industry. 

It allows you to tailor your services, products and marketing initiatives, to effectively target and reach your ideal customers, leading to increased sales. Increased sales equal greater profitability and growth!  

Why understanding is so important: 

Understanding your competitors, customers, clients and the overall market landscape provides insight that can help you make more informed decisions, saving you time, energy and money.  

Start by taking the following Steps  

Step 1: Identifying and targeting your ideal Customers 

• Customer Profiling. Through market research you can get customer profiles, such as demographics, motivations, and buying habits.  

• Market segmentation furthers this search into geographical, psychographics and media sources. By defining these characteristics your business is already gaining an edge by screening current and potential customers. 

• Market Strategies. With the above intensive research, you can develop your sales strategy, designed to reach and satisfy your target audiences' wants, needs and expectations. 

Step 2: Staying ahead of your Competitors 

• Competitor analysis. It’s crucial to conduct market research to find who and what are in the marketplace. Knowing your competition, clients, and prices allows you to plan accordingly.  Do the research and see how you stack up!!  

  Read more...

In a time of conscious consumerism and cost of living pressures we are now seeing what is called the ‘lipstick effect’. 

This economic and retail theory proposes that cash-strapped consumers are more likely to purchase affordable brand lipsticks, beauty goods and luxury items during an economic downturn. In this environment Consumers still want their small indulgences and to treat themselves even when faced with financial challenges and their money is tight.  

This phenomenon was reportedly suggested by beauty giant Estee Lauders former chairman, Leonard Lauder, who noticed an increase in sales of lipstick during the US recession in the late 1990’s.

More recently, this 'theory' gained attention with the headline ‘cosmetics at face value’ ‘cost of living pressures make big retailers unlikely beneficiaries of the lipstick effect’.  The article included comments from various sources including leading supermarkets, experts and everyday consumers.

Comments reported as, ‘consumers are starting to explore alternatives that represent better value for them’ ‘beauty retailers have to grab people's attention, you’ve got to entertain them, you’ve got to excite them’. ‘it was important how beauty retailers brand themselves as a necessity for consumers’! ‘I've just started looking at what I was paying for if it was marketing or pretty packaging’! 

Another example. The lipstick effect is proposed as one of the reasons movie complexes and fast-food casual restaurants do well during hard times. Cash-strapped consumers want to treat themselves to something to help them forget their financial worries. Not an overseas holiday but a treat, a cheap night out!

This pattern is also a manifestation of something economists call the income effect. And there is more, much more,. Search this subject with the click of a mouse on the web.

So, what does the lipstick effect mean? What does it mean to you, your Business!

More specifically, what is the post-COVID New World Order of Doing Business and How do we Prepare for it! 

Simply put, the world has changed! It’s a new world economy and how we do business has changed!

• COVID brought about changed conditions, unforeseen factors and influences that affected what is and how we do Business. Stalled supplies, isolation and restrictions, production, labour shortages, the Ukraine conflict, and inflationary pressures were some of the compounding setbacks.  
• Adaptability, flexibility and creativity kept many small Businesses alive! Some enjoyed increased demand with the opportunity to explore new ways of doing things, discovering new products and thinking differently. Looking outside the box!
• Post COVID, in Australia how we live and conduct our Business has changed bringing with it the emergence of entrepreneurship opportunities, optimism and resilience not seen in the past 50 years!   

With the rapidness of change trends are emerging; technological, cultural and societal. Smart Businesses are preparing by accepting change is inevitable! They see change as opening doors and view challenges as opportunities. 

• Areas of change include: Technology, Workplace & Work practices and ECommerce. 
• Key Challenges: identifying growth Industries, making new trading alliances and securing safe Supply chains.

Technology: is redefining the way we do Business.  Digital transformation incorporates computerised technologies into their business processes, products, structures and systems thus providing more streamlined operations and ensuring Business continuity.  Businesses that undertake digital transformation are better equipped to engage and respond to their customers and workforce needs and further increase their market competitiveness. 

The Workplace: the definition of workplace has, will change as we see different working patterns and habits adopted, including around remote working practices. As new norms are established the workplace will no longer be an office, a place of daily attendance. Workplaces, whatever their description will be a collaboration, concerned with achieving common objectives.

Remote Working practices: Employees doing their jobs from home or locations away from the traditional central office place.  Offering ‘remote’ flexible arrangements is the new norm for attracting employee engagement and retention. Conducting business this way requires implementing virtual team collaboration and setting up remote business operations to suit all parties. 

Champagne Bottles are already popping and decisions need to be made to host your upcoming Christmas Office Party? 

This isn’t just any party, this is the much anticipated and sometimes unforgettable, for all the wrong reasons, the annual Christmas office party. But no matter if it’s an office, shop or factory it's the time when co-workers get together to celebrate and socialize.  

And this is where it can become unstuck, when some colleagues party harder than they should!  

Sound familiar, you’ve witnessed or experienced it, and you’ve heard the sayings; ‘letting your hair down, anything goes, drink till you drop, it’s only once a year! It’s not a pretty sight! 

The good news, attitudes and behaviours have changed! The once alcohol-fuelled workplace gatherings have sobered up.  

This is influenced by more than HR Departments wanting to improve bad behaviour and poor images, but the wider ‘alcohol’ movement promoting drinking less and ‘booze free’ events. Popular activities where colleagues can socialize without alcohol or simply consume less. Lawn bowls, mini golf, and alcohol-free breakfasts.  This reflected in research indicating, younger Australians, are cutting back on booze, preferring to socialize in ways that don't involve alcohol.  A trend also reflected overseas. 

Importantly, colleagues can still socialise. It’s not really about the party or drinks; it's about excessive alcohol consumption. Overindulgence can lead to poor decisions, actions and sometimes later regrets.  

If you are a Business wanting to support a social event, it's about planning and adopting ‘office party’ strategies. 

7 Staff Management Strategies:  

1. Establish clear guidelines, codes of conduct, for what is acceptable and unacceptable behaviour in the workplace. Importantly ensure these are communicated directly to all employers so there is no misunderstanding or confusion about behaviour at both the workplace and work-related functions.   

This power can’t be underestimated in today's competitive landscape. 

In these inflationary times with cost-of-living pressures shoppers are looking to stretch their dollar and increase their purchasing power. To get more for their ‘dollar’ they are seeking bargains, gifts and discounts - enticements that often appear in the form of customer loyalty programs. 

This has seen Businesses respond, adopting a loyalty business model. This aims to increase the loyalty of customers and other stakeholders that results in meeting objectives and profits.  Rewards, relevance and recognition are considered key elements of strong and effective loyalty programs. 

As competition heats up, the big players in various Industries are investing heavily in offering a range of loyalty bonuses and rewards. Discounts, promotions, and incentives with purchases of food, fuel, flying, the list goes on! 

What’s happening in your Business/Industry?  

More importantly, are you getting your share of the ‘loyalty’ market! 

Customer loyalty is best described as an ongoing positive relationship between a customer and a Business.  It drives repeat purchases, brand loyalty and retention. Your customer chooses your company over another offering similar or the same products or service. Your loyal customers return, Cha Ching, the sound of the cash register! 

Is your register cha-chinging?  

If you are a small Business how do you compete with the ‘big’ operators with big budgets?  

This is where small Business needs to be smart! 

Attracting, building loyalty doesn’t have to come with a huge price-tag. Show your appreciation with goodwill gestures such as the coffee card bonus free cup. Very popular! Who doesn’t have a card ready to be tagged! I do!

Hands up who hasn't shared a story with friends of why they will support and be loyal to a particular Business or service. And this where small Business gain market share.

Building loyalty by delivering good ‘old-fashioned’ service. Loyalty earned with your words and actions.

Check the list below, does it match your 'mantra'  

The rise is real, read the ‘stats’, visit your local cafe or venture to the park and you are most likely to be greeted by a pet lover, a pet parent, with pooch in toe, on a lead, taking their daily walk! Aren’t they adorable! 

It’s true, pets are taking over our hearts, purses and wallets. 

But why this rise in popularity! 

And what does that mean for Pet Businesses, the Industry? 

• Why this rise in Popularity? 

One in five families acquired a cat or dog during the pandemic to support family wellbeing. The benefits were described by parents as pets provided companionship, routine and a welcome distraction with families having more time at home. 

Animals, pets, now command a more central place in our emotional lives. With less people directly involved with farming, it's more common to value animals primarily as companions, even as family members. Pew Research reports that 97% of pet owners see their pets as members of the family.18 Nov 2023 

With an aging population, pet companionship for the elderly to combat loneliness has increased. Pets, cats, dogs, and birds have been shown to improve mood, particularly in those with depression and anxiety.   

There are also specialist trained ‘care’ assistance animals, particularly dogs that are matched with the vulnerable in the community. It is widely reported that this connection offers tangible support, happiness and the joy of unconditional love. 

Working dogs make up another sector valued by their handlers, trainers and the wider community for their contribution, ‘search, sniffer and rescuer dogs to name a few roles. 

Social media has played a huge part in the rise of popularity. The impact of Pet influencers featuring cute cats and entertaining dogs, along with viral pet videos, and on Instagram famous pets have amassed huge followings.  

• Pet population profile 

According to a national pet population survey Australia is home to approximately 28.7 million pets, amongst 6.9 million households. 

Dogs are the most popular pet (6.4 million, with half of Australian households having at least one. Cats come in second favourite with a population of 5.3 million.  

It follows that there has been a rise in demand for Pet-related goods, products and services. 

• Pet Owners – show us your money! 

In a time of cost-of-living pressures, including the rising cost of insurance premiums, you may be looking at ways to save money or even cut corners! But some things can’t be sacrificed.   

Business operators can't afford not to have adequate Insurance cover. It’s your hedge against unexpected events! 

Read on to find out what, why and how smart small Business operators, set themselves up with appropriate insurance cover. You could say this is an investment in peace of mind and protection for unforeseen actions. 

Yes, unexpected catastrophic events do happen!! We have seen this play out before our very eyes, locally, cyclones, fires and floods. The Los Angeles fires, with many suffering the aftereffects of the devastation. Have you experienced any of these or know of others that have? 

Whatever the cause, extreme weather, factory fire, criminal damage, disasters occur and come with a financial and human cost. This raises the question ‘how well placed are you, can your Business deal with the fallout!’  

As a Business owner you will want to protect what you have worked hard to build and to continue operating. This is where taking out Insurance is a smart move, to plan for the unexpected. It's about minimizing your exposure to potential risks.  

Risks are real, experience a disaster, storms, water related damage, refrigeration breakdown or burglary and theft!  Cyberattacks have surged resulting in financial setbacks, data breaches, and reputational damage. Business interruptions are costly! Without appropriate insurance you may be unable to trade or have substantial out of pocket expenses that could mean you have to close your Business. 

What is Business Insurance and how does it work? 

Business Insurance is a financial protection policy designed for risks Businesses face. Risk of unplanned events that impact your operations, such as fire, theft, natural disasters, and legal claims. Insurance protects your Business from financial losses, so you can recover and continue activities without considerable financial impact. Think of insurance as a safety net to protect you, your Business, employees, customers, premises and documents. 

How much does Insurance cover cost?

Your premiums and what you pay will be set by your Provider and is usually determined by your Business risk profile.

What does it take!

Is there a secret recipe?

 No secret but there is a recipe. It's a mix, by combining the ingredients of experiences, wisdom, little gems, mistakes and lessons learned that make successful relationships in marriage, Business or both! 

A secret recipe! Add these 8 Ingredients. 

1. Have a Vision, Belief and Goals. Share your dream with loved ones and your associates to bring it to fruition, and make it a reality! Be an entrepreneur of your ideas, add passion, commitment, creativity and innovation. Think Blue Sky and dream Utopia! 

2. Develop your Pitch. To get buy-in and attract partners you need to promote, sell and clearly articulate your dream. Keep your message simple, avoid jargon, frills and whistles! 

3. Build relationships on strong foundations: Develop trust and build bridges and bonds with partners by finding common ground and mutual interests. Together, develop a roadmap, a guide to know where you, your Business, and your partner are going, how and what it takes to get there. 

Strategy 1: 

Adopt these 'healthy' practices to get your cash flowing:   

1. Profit margins: with the current ever-increasing costs of doing business, it’s critical to have true-cost pricing. Don’t let your profit margins be eaten away.  

Whether it’s the price of eggs, utilities or wages, you need to consider how to manage the increased cost of doing Business. 

• Firstly, do you know what your profit margin is for your business?  
• Secondly, do you know your profit margins for the goods and services that you offer?
• Thirdly, which project lines are not profitable and are affecting your business?

Tips:  

• Regularly check the cost of goods and products and determine realistic profit margins by setting prices not too low or too high.  

• Pricing points are needed to keep you competitive and ‘in the red’.  

• Be balanced, with inflation affecting your purchases you need to increase your sale prices accordingly.   

• Offer value for money and your customers will keep coming back!  
• Contact Blackburn Accounting to help you to work this out.

Watch for more in this series! 

No matter your Industry, if you have something to sell start developing your Sales campaign now!  

Black Friday will officially begin on November 29th this year but don’t let that stop you from getting into the action earlier. 

Start by Understanding the importance of Black Friday sales opportunities 

Australia has eagerly embraced this American tradition that heralds the start of the shopping season, after their celebrated Thanksgiving Day. Both retailers and shoppers enjoy the offers and benefits of highly promoted sales at discounted prices. 

New research shows that the pre-Christmas sales opportunities in November, including Black Friday, will see an impressive number of shoppers bringing forward their spending to secure bargain gifts. This builds on last year's November sales that jumped by 2.7%.  

7 Strategies to Maximise your Sales opportunities 

1. Plan, prepare and promote your Marketing campaign, NOW!  Identify your deals and align with stock, supply, resources, budget etc. Explore all marketing options to get greatest exposure, such as; social media, display advertising, newsletters, and Instore promotions. 

2. Consumers' buying habits and behaviours have changed, since the pandemic and now with the cost-of-living crisis. Shoppers are savvier, more discerning, looking to increase their buying power, both instore and online. Bargain hunters are out hunting, keen, and eager to get ‘early-bird’ specials.  

3. Get your Business ‘house’ in order. Instore make sure your premises are ready and equipped for more customer traffic. Ensure you have sufficient and suitably trained staff. Online/digital make sure all systems are up to date, in working order and ready to go!  Do a ‘test run’! Have a backup system, plan B! 

4. The Role of E-commerce to expand opportunities.  Optimize your website and maximize sales opportunities with ‘Click and Buy’ purchase options. Make it simple and easy for shoppers. More direct methods mean less time and hassle for all. Explore new marketing tools and seek expert technical help if needed.  

5. Leverage social media to boost your exposure. Craft ‘clever’ emails, tailor content and personalize to regular customers, and re-engage with past and target potential ones. Be honest and authentic, avoid gimmicks. Utilize hashtags effectively to spread your message.  

6. Craft irresistible deals. Plan your ‘sales’ pitch and develop product offers to get ultimate results. Motivate customers, make offers attractive with ‘can't refuse’ incentives! Remember your (USP) unique selling point. Consider offering free delivery, bundled offers bonuses and gifts.  Explore ‘upsell and cross-sell' methods. 

7. Delivery methods. Critical to have delivery systems in place for Online shoppers. Check your providers/arrangements are reliable and ready to go to deliver orders as promised. Carefully monitor and manage inventory to ensure supply. 

Seize the moment to capitalize on this year’s Black Friday sales opportunities, crank up your campaign 

And get your early bird deals out now! 

Heed the warnings, watch for signs of deceptive behaviour and importantly do what you can to avoid becoming a 'scam' victim! 

Scammers are busy ramping up their criminal activities as we lead into the Christmas festive season.  Their fraudulent repertoire includes various tactics and tricks and teasers, invitations to entice the unsuspecting and innocent. Sounds too good to be true, best avoid it!

Currently, the Black Friday and Cyber Monday sales are in their sights using scam websites impersonating high-profile Retailers. Shoppers' favourite and well known footwear and fashion labels are the focus in this scam. And look out for bogus stores set up on social media platforms to advertise these fake websites.

Impersonation scams accounted for more that 70% of the 234,672 reports to Scamwatch in 2023 according to National Anti-Scam Centre.

The experts have spoken.

• Online scams are amongst the fastest growing crime types in Australia!
• Our personal data in this digital age has become highly valuable and sought after by cyber criminals who use it as information they can exploit for financial gain. 
• The Australian communications Consumer Action Network anticipates more scamming through the Christmas period and the ACCC revealed Australians lost a record $3.1 billion to scams last year!
• Australians via Scamwatch have reported losing nearly $400m to September this year. Not very jolly news!

Tips for avoiding scams: 

Stop and Think before you proceed. Don’t feel pressured to make quick decisions, to rush in and throw caution to the wind. Scammers will make you feel like you have to act quickly, using special short time deals to trick you.

Don’t give your personal details to anyone unless you have verified and are satisfied they are legitimate and the purpose is legitimate. Copies of passports, birth certificates, and bank account details are highly sought after by scammers for their criminal activities. 

Protect yourself. Act quickly if something feels wrong. Take action and contact your bank immediately if you have lost money to a scammer.

Here are my 3 things to look out for at this time of year! 

1. Online shopping scams: Fraudsters are creating Online stores that are replica, look-alikes of major retailers websites.  They use sophisticated designs and often stolen logos to look like the genuine thing. Well-known brands also feature in this scam. Big discounts and rewards are used as attractions. Consumers can easily be fooled.