A bank is warning January bargain hunters to be wary of dishonest retailers claiming to offer deep discounts.
The number of dishonest retailers identified by Lloyds Banking Group in January 2024 was 140 per cent higher than the normal monthly average throughout the year, indicating that retailers targeted shoppers looking for deals during the post-Christmas sales.
Dishonest retailers trick shoppers into making purchases by creating fake websites, which look like popular brands.
But once buyers have made the purchase, the scammer keeps the cash without shipping the item.
The scam can cause credit card transaction disputes to peak in January, with Lloyds seeing a 40 per cent increase in disputes in January 2024, compared to the normal monthly average.
Scammers may also offer heavily discounted products through social media.
Bank warns January bargain hunters to beware of dishonest retailers claiming to offer huge discounts (file image)
Dishonest retailers are tricking shoppers into making purchases by creating fake websites, which look like popular brands (stock image)
Clothing tends to be the most common item purchased from dishonest retailers, followed by jewellery, Lloyds said.
Lloyds said scams from dishonest 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 task force that works with payment companies to protect buyers by reporting and blocking transactions with known fake websites.
Gavin Evans, senior director of consumer cards at Lloyds, said: “The January sales can be a great time to grab bargains, but it’s also a popular time for dishonest retailers, who try to rip off unsuspecting shoppers and pocket the money. that has cost them so much to win.
‘To avoid being discovered, 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 opened the website by clicking on an ad or social media post .
‘Remember that if something seems too good to be true, it usually is. If you are ever unsure, consider purchasing from a place you trust.