Banking giant Lloyds has issued a stark warning to January sales bargain hunters, cautioning them to be wary of dodgy retailers claiming to offer substantial online discounts. The bank revealed that the number of rogue retailers identified in January 2024 was a staggering 140 per cent higher than the average monthly figure across the year.
This suggests that criminals are capitalising on people’s eagerness to secure a post-Christmas deal in the New Year sales. Lloyds disclosed that its customers had lost an average of £545 to online shopping scams, prompting calls for extra vigilance when making online purchases this month. A prevalent scam involves fraudsters setting up counterfeit websites to deceive shoppers into buying items that are never sent out.
This type of scam can lead to a surge in credit card transaction disputes in January, with Lloyds recording a 40 per cent increase in disputes in January 2024 compared to the typical monthly average.
The banking giant also warned that scammers might advertise heavily discounted goods on social media platforms. Clothing is often the most common item purchased from rogue retailers, followed closely by jewellery.
According to the bank’s own credit and debit card customer data, rogue retailer scams have cost a whopping £8.5 million between January and November 2024. In response, Lloyds has set up an industry working group in collaboration with payment companies to safeguard shoppers by reporting and blocking transactions with known fraudulent websites.
Gavin Evans, senior manager for consumer cards at Lloyds, commented: “The January sales can be a good time to grab bargains, but it’s also a popular It’s a prime time for unscrupulous retailers, who aim to con unsuspecting shoppers and make off with their hard-earned money. “To avoid falling prey, verify the web address before making a purchase to ensure it’s legitimate and corresponds to the shop you intend to buy from, particularly if you accessed the website through an advert or social media post. “Bear in mind that if something seems too good to be true, it usually is. If you’re ever in doubt, consider purchasing from a place you trust instead,” advises Simon Forbes, Divisional President, UK and Ireland at Mastercard.
He added: “It’s the season when rogue retailers are most active. At Mastercard, we strive to assist banks like Lloyds in identifying scam payments before they occur. To avoid being scammed this festive season, scrutinise who you are buying from, be wary of offers that are significantly cheaper than elsewhere and report any suspicious transactions to your bank.”
Lloyds also offered advice to victims, stating: “Firstly, attempt to contact the retailer directly to explain what has transpired and request a refund. If the retailer doesn’t respond or refuses to refund you, areport the transaction to your bank. Most banks, including Lloyds, allow you to report transactions online via your mobile banking app. “Your bank will then take over, typically raising a chargeback claim to potentially retrieve your money. For instance, 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, there’s an option 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.”
For LLoyds official anti-scam advice click here.