January bargain hunters are being warned about rogue websites claiming to offer big discounts

Economy
By Liam

By VICKY SHAW

Updated:

January bargain hunters are being warned by a bank to be wary of rogue retailers claiming to offer big discounts.

The number of rogue retailers identified by Lloyds Banking Group in January 2024 was 140 percent higher than the normal monthly average for the year, indicating that retailers were targeting customers looking for deals during the post-Christmas sales.

Rogue retailers trick shoppers into making purchases by creating fake websites that look like popular brands on the high street.

But after the shopper makes the purchase, the scammer pockets the money without shipping the item.

The scam could see disputes over credit card transactions peak in January, with Lloyds seeing a 40 per cent increase in disputes in January 2024, compared to the normal monthly average.

Scammers can also offer heavily discounted goods via social media.

January bargain hunters are being warned by a bank to beware of rogue retailers claiming to offer big discounts (file image)

Rogue retailers trick shoppers into making purchases by creating fake websites that look like popular household brands (file image)

Rogue retailers trick shoppers into making purchases by creating fake websites that look like popular household brands (file image)

Clothing is often the most common item purchased from rogue retailers, followed by jewelry, Lloyds said.

Lloyds said rogue scams by retailers cost £8.5 million between January and November 2024, based on the group’s own credit and debit card customer data.

The bank has created an industry working group that works with payment companies to protect shoppers by reporting and blocking transactions with known fake websites.

Gavin Evans, senior manager for consumer cards at Lloyds, said: ‘The January sales can be a great time to pick up bargains, but it is also a popular time for rogue retailers, who try to scam unsuspecting customers out of their hard-earned money. pocket.

‘To avoid getting caught, check the web address before making a purchase to make sure it is legitimate and matches the store you want to buy from, especially if you accessed the website by clicking an ad or clicking a message on social media.

‘Remember that if something seems too good to be true, it usually is. If you’re not sure, consider buying from somewhere you trust.’

Tips to avoid losing money:

1. First, try contacting the seller directly to explain what happened and request a refund.

2. If the merchant does not respond or refuses to refund you, report the transaction to your bank. Many of these allow you to report transactions online in your mobile banking app.

3. If you paid by card, you can ask your bank to file a chargeback claim. You must provide your bank with details of the transaction you are disputing and a description of what went wrong with the item you ordered.

4. If you made the purchase with your credit card, you may be able to make a claim under section 75 of the Consumer Credit Act. Your bank can guide you on what to do.

In addition to the tips, new rules came into effect last fall that require banks to reimburse people who have been tricked into transferring money directly to a fraudster.

The authorized push payment (APP) rules are overseen by the Payment Systems Regulator (PSR).

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