Lloyds Bank issues scam warning to customers over new purchase fraud | Personal Finance | Finance
The bank is warning consumers over the rise in purchase scams, notably through fake adverts promoting designer trainers. Purchase scams happen when someone is defrauded into sending money via bank transfer to buy goods or services. These examples of fraud are usually advertised online or through social media which has led to their rise as of late.
According to Lloyds’ data, reports of purchase scams which involve shoes and trainers have more than doubled so far this year.
Specifically, they have risen by a staggering 112 percent compared to the same period in 2021.
The bank estimates that targeted consumers are losing £152 on average alone to scams involving shoes and trainers
However, shoes and trainers are not the only items which have been used to con people in purchase scams, according to the bank.
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Tickets have also been used by fraudsters as more consumers are looking to attend live events following the end of pandemic-era social distancing restrictions.
Lloyds reports that purchase scams involving tickets have increased by 603 percent within the past year.
So far, the average amount lost to this type of fraud is £251, with football matches and music concerts the events more likely to appear in fake advertisements.
While fraudsters will advertise any brand they think might snare an unsuspecting victim, analysis of reported cases shows that Nike is one of the most common labels currently being used to promote this type of scam.
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Liz Ziegler, the Retail Fraud and Financial Crime director at Lloyds Bank, sounded the alarm over potential “red flags” which consumers should pick up on when looking out for fraud.
Ms Ziegler explained: “Fraudsters are always on the lookout for new ways to trick victims out of their hard-earned cash.
“With designer trainers amongst the latest must-have items being targeted, the criminals are ready to hotfoot it away as soon as they have their hands on your money.
“Purchase scams come in all shapes and sizes, but the vast majority start with items advertised on social media, where it’s all too easy for fraudsters to use fake profiles and advertise items that don’t exist.
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“When shopping online, the best way to keep safe is to buy from a trusted retailer whenever possible, and always pay by card for the greatest protection.
“If you’re unable to do those things, that should be a big red flag that you’re about to get scammed.”
As part of its warning to customers, Lloyds shared advice to those concerned about being targeted by this latest retail scam.
The bank stated: “Always use your debit or credit card when you buy online. This helps to protect your money should anything go wrong.
“Fraudsters use social media to post scam offers. They can even send them straight to your inbox. Always search for deals yourself.
“Check any offer that comes by text or email to make sure it’s genuine. Call the sender to find out using a number you trust, not one in a message. Or visit the website to check. Never click on a link without checking first.”
Furthermore, Lloyds cautioned its customers over advertisements for “low prices and great deals” as these can be falsely promoted to hide ture scams.
Notably, the bank warned that fraudsters can charge consumers more to trick them into spending more money on a product they think is out of stock or being offered at a favourable price.
Furthermore, Lloyds is reminding people to check any websites they are purchasing from are genuine by looking at reviews. No bad or mixed reviews for a website could be a red flag, according to the bank.
