Households have been warned they are at risk of having hundreds of pounds stolen from their bank accounts this month. There is expected to be a huge rise in online shopping scams this month as criminals look to dupe January sale hunters.
Banking giant Lloyds said its customers had lost £545 on average to online shopping scams, as people were warned to take extra care when buying items online this month. A common scam sees crooks create fake websites to trick shoppers into buying items that are never dispatched.
This led to a 40% increase in credit card transaction disputes at Lloyds in January 2024. Scammers seek to lure customers in by offering big discounts, while website are made to look like those of high street retailers like H&M and House of Fraser.
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Gavin Evans, senior manager for consumer cards at Lloyds, said: “The January sales can be a good time to grab bargains, but it’s also a popular time for rogue retailers, who try to scam unsuspecting shoppers and pocket their hard-earned cash. To avoid being caught out, check the web address before making a purchase to ensure that it is legitimate and matches the shop you’re looking to buy from, especially if you opened the website by clicking on an advert or social media post.
“Remember that if something appears too good to be true, it usually is. If you’re ever unsure, consider buying from somewhere you trust instead.”
Simon Forbes, divisional president, UK and Ireland at Mastercard, said: “It’s the time of year when rogue retailers are out in force. At Mastercard, we work hard to help banks like Lloyds spot scam payments before they take place. To avoid being scammed this holiday season, check who you are buying from, beware of offers that are significantly cheaper than elsewhere and report any suspicious transactions to your bank.”
Lloyds issued advice to victims, adding: “First, try contacting the retailer directly to explain what has happened and request a refund. If the retailer doesn’t respond or refuses to refund you, report the transaction to your bank. Most banks, including Lloyds, allow you to report transactions online in your mobile banking app.
“Your bank will then do the rest, usually raising a chargeback claim to potentially recover your money. For example, you can do this in the Lloyds app by tapping the transaction you wish to dispute, selecting ‘help with this transaction’ and following the steps on screen to raise a dispute.
“If you used a Mastercard, Visa or American Express credit or debit card to make the purchase, you may be able ask your bank to file a chargeback claim. To do this, you’ll need to provide your bank with the details of the transaction you’re disputing (including the retailer’s name, date of the transaction and the amount), and a description of what went wrong with the item you ordered.”