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16 December 2022
Online bargain hunters are being urged to watch out for festive fraudsters, as scammers look to cash in on the last-minute shopping rush in the run-up to Christmas.
New research from Lloyds Bank reveals that the number of online shopping scams increased by 20% in December last year (compared to December 2020).
The average amount people were tricked into handing over was £427. However, those aged between 55 and 64 lost more than double that, around £1,000 on average.
Most of these scams start via online platforms such as Instagram or Facebook Marketplace, with victims lured in by the promise of cut-price or hard-to-find goods, especially during busy shopping periods like Christmas.
The most common items reported as part of online shopping scams in a typical December include trainers, clothes, gaming consoles and phones.
Meanwhile a poll of more than 2,000 UK adults found that a third of people (33%) would take more of a risk at Christmas, such as purchasing from a website they haven't heard of before, if they are buying something that is hard to find elsewhere.
And around one in five people (18%) would take more risk if their priority is to find the cheapest option. This is a particular concern at the moment, with almost four-fifths (79%) of people saying the current rise in the cost of living makes them more keen to seek a bargain at Christmas.
The research also found that more than half of people (57%) still consider a bank transfer (also known as a Faster Payment) to be a safe payment method for buying items online, despite it offering much less protection than paying by credit or debit card.
Liz Ziegler, Fraud Prevention Director, Lloyds Bank, said: “With people especially keen to bag a bargain this Christmas given the cost of living squeeze, heartless fraudsters will be ready to trick unsuspecting victims out of their hard earned cash.
“Online shopping scams come in all shapes and sizes, but the vast majority start with items advertised on social media, where it’s too easy for fraudsters to use fake profiles and advertise goods that simply don’t exist.
“The safest way to pay for things online is always by debit or credit card, and buy from a trusted retailer. Remember that if a deal looks too good to be true, it usually is.”
Another scam popular among fraudsters at this time of year involves fake emails and text messages which claim a parcel is awaiting delivery, and asking the recipient to click on a link to pay a fee.
The website will ask for personal and banking details and the fraudsters can then use this information to impersonate the victim’s bank.
Worryingly the research found that more than a quarter of UK adults (26%) say they always or often click on links in messages that appear to come from a delivery company.