A UK bank has issued a warning to Christmas shoppers searching for online deals, as data reveals a significant rise in purchase scams this year.
As shoppers prepare for Black Friday and Christmas, TSB analysed cases from January to October 2024 to highlight the amount of customers who were duped into sending money to criminals while shopping online.
The bank found that more than half of authorised push payment fraud cases in 2024 were made up of purchase scams, where customers are duped into sending money to criminals for non-existent goods.
Many of these purchase scams originate on social media platforms.
Scammers often advertise tickets for concerts and football matches, clothing, children’s toys, games consoles, luxury items and tech.
Last week, cosmetics retailer Space NK was targeted in a purchase scam where scammers were posting fake adverts with an offer to sell its £250 advent calendar for just £28.99.
Nicola Bannister, TSB’s director of customer support issued a strong warning in preparation for rising online shopping scams, saying: “At this time of the year, we’re all shopping online more than ever – but it’s important to be wary of scams on social media platforms, as crooks are listing items that simply don’t exist.
“We’d advise sticking to reputable websites and only buying an item you’ve found on a social media platform if you can view it in person first.”
However, consumers will be better protected, after new mandatory reimbursement rules were enabled last month on behalf of the Payment Systems Regulator.
Banks must now refund authorised push payment fraud victims in all cases, excluding those where the customer has been grossly negligent.
Any scam up to a value of £85,000 must be reimbursed, although banks can choose to include an excess fee of up to £100.
However, some banks, including TSB, have pledged to waive the £100 excess.
Have you lost money to a scam? Contact National Fraud Helpline. Call 0333 0033218 or fill out our Claim Form.