By LESLEY GREGORY
Consumers are being warned to be alert to online shopping scams, as more people turn to the internet for Christmas gifts this year.
“Intelligence from our members across the banking and finance industry shows that purchase scams are on the rise, with buyers of games consoles, bicycles and clothing at high risk,” says Katy Worobec, who is Managing Director of Economic Crime at the banking and finance group UK Finance.
Social media platforms, online marketplaces and auction websites are increasingly being used for these purchase scams, where a customer pays in advance for goods or services that are never received, the group says.
How big is the problem?
Over £27 million was lost to this sort of fraud in the first half of 2020, according to UK Finance, with the average loss being about £720.
It’s a global problem. In Australia the consumer regulator says losses to online shopping scams are up more than 40 per cent this year. Fake puppy sales tops the list of shopping scams there, with demand for pets (and prices) soaring as people worked from home because of COVID-19. Shoes, cars, phones and computers followed. In a local twist, barbecues also feature in the top 10 of dodgy deals.
How to spot a scam
A hint that something may be awry when shopping online is that the seller asks to be paid not via the platform or somewhere like PayPal but through a bank transfer. That makes it very hard for you to get a refund. Also be cautious if the price looks too good to be true – it probably is.
Criminals are also using the cover of Christmas to roll out “data harvesting” scams, which try to get you to provide personal and financial details through phishing emails that advertise cheap goods and impersonate legitimate organisations and businesses. They then use this information, including card details, to commit fraud.
Another variation being reported internationally is fake parcel delivery notifications via text message or email. A legitimate notification won’t ask you to click a link to enter your personal details or credit card details or ask you to pay a fee.
Three steps to stay safe this Christmas
Remember that criminals are experts at impersonating people, organisations and even the police. To stay safe, the Take Five to Stop Fraud campaign offers this advice:
- Stop: Take a moment to stop and think before parting with your money or information
- Challenge: Could it be fake? It’s OK to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.
- Protect: Contact your bank immediately if you think you’ve fallen for a scam and report it to Action Fraud.
LESLEY GREGORY is an experienced personal finance and consumer journalist. She regularly writes for TEBI money and personal finance issues that aren’t directly related to investing.
Also by Lesley Gregory:
How to nail those last minute gifts
Cash for gold? Tread carefully
How to protect your pension from scammers
Should you take voluntary redundancy?
How to protect your credit score from COVID
The hidden costs of online shopping
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