Purchase scams starting on social media are expected to cost UK consumers more than £27million this year alone, according to new analysis by Lloyds Banking Group.
As people turn to online shopping, scammers have taken advantage and are tricking people into paying for goods and services that don’t exist.
Victims are lured in by the promise of low prices or exclusive items often advertised via social media.
They are asked to send money directly from their account to another account via bank transfer (also known as a Faster Payment), which provides very little consumer protection when something goes wrong.
New research by Lloyds Banking Group, based on analysis of reported cases among their more than 25 million retail customers, has found that two-thirds (68 percent) of all purchase scams now start on just two Meta-owned social media platforms – Facebook (including Facebook Marketplace) and Instagram.
The bank found that clothes, trainers, gaming consoles and mobile phones are among the most common goods being falsely advertised.
Across the industry, the average amount being lost by the victims of purchase scams is around £570.
Lloyds Banking Group is calling for technology and telecommunication companies to do more to stop scams at source and play their part in refunding victims of fraud which originates on their platforms.
Falling victim to a scam is profoundly distressing and casts a long shadow beyond the financial impact, including on mental health and confidence, leaving people deeply affected by the experience.
They explained that relying on the banking sector alone to detect scams and provide refunds means those platforms where the vast majority of the fraud starts have no incentive to stop it.
Liz Ziegler, fraud prevention director, Lloyds Banking Group, said: “Social media has become the Wild West of online shopping in recent years, with very few checks in place to verify who is selling what.
“This has left consumers increasingly exposed to ruthless fraudsters, with hundreds of new victims targeted every day and tens of millions of pounds flowing to organised crime gangs each year.
“Banks have been at the forefront of tackling the epidemic of scams, but they cannot fight it alone. It’s high time tech companies stepped up to share responsibility for protecting their own customers.
“This means stopping scams at source and contributing to refunds when their platforms are used to defraud innocent victims.”
Lloyds Bank gave their top tips to help victims stay safe from online shopping scams:
- “Be cautious on social media – you don’t know if the user profile and item are genuine, and have few ways of checking. A good rule is to only buy things you have seen in person.
- “Avoid deals that look too good to be true – adverts with low prices or for sold-out items should ring alarm bells. Look for similar offers elsewhere to work out if they’re realistic. Buy from trusted retailers – this is usually the safest way to shop online. But watch out for fake websites and emails, and be wary of mixed, bad or no reviews at all.
- “Use your debit or credit card – this helps to protect your money should something go wrong. PayPal is another option that’s usually safer than paying by bank transfer.
- “Pay attention to warnings – your bank is likely to provide a warning when you set up a new payee or make an unusual payment. Be sure to follow any advice provided.”
Express.co.uk has contacted Meta for comment.
