With Black Friday approaching on November 29 and the holiday shopping season underway, TSB is alerting consumers to a surge in online purchase scams. New data from the bank reveals that purchase scams account for over half (55%) of authorised push payment (APP) fraud cases reported this year. These cases have seen customers deceived into transferring money to fraudsters advertising non-existent goods.
From January to October 2024, TSB recorded numerous cases where scammers targeted buyers with high-demand items such as concert tickets, football match seats, designer clothing, children’s toys, game consoles, and electronics. Many scams originated from ads placed on social media, which fraudsters use to quickly reach large audiences with enticingly priced items. TSB has observed scammers often request deposits, particularly when purporting to sell vehicles such as cars or motorbikes.
High-Demand Items as Scam Bait
The bank’s analysis shows that high-demand items are frequently used to attract unsuspecting shoppers. Common scam items include concert and sports event tickets, designer sneakers, electronics, and other holiday gift essentials. TSB cited one incident where a male customer lost £50 after paying for a concert ticket advertised for the same night. The scammer provided a screenshot of the ticket as “proof,” but blocked the customer immediately after receiving payment.
New Fraud Reimbursement Protections
October brought changes for fraud victims, as new mandatory reimbursement rules from the Payment Systems Regulator (PSR) took effect. These rules require banks to reimburse victims of APP fraud for transactions made from October 7 onward, up to a value of £85,000, as long as the customer was not grossly negligent. TSB has also pledged to waive a £100 excess fee, ensuring more comprehensive protection for victims, and will continue to review cases on a case-by-case basis that fall outside the PSR rules.
TSB’s Tips to Avoid Holiday Scams
With the holiday season often prompting a rise in online purchases, TSB encourages consumers to prioritize shopping on reputable websites. Nicola Bannister, Director of Customer Support at TSB, advised shoppers to avoid making purchases from social media unless they can meet the seller in person to verify the item.
“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,” Bannister said. “At this time of 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.”
Key Reminders for Safe Shopping:
- Use Trusted Retailers: Stick to well-known, reputable sites for online purchases.
- Meet Sellers in Person: When possible, view items listed on social media in person before handing over any money.
- Recognize Red Flags: Unusually low prices or requests for deposits without a chance to meet the seller may signal a scam.
- Know Your Rights: Under new PSR rules, victims of APP fraud may be eligible for reimbursement.
With the holiday season in full swing, TSB is committed to safeguarding shoppers and encouraging them to take precautions against fraud.