Lloyds customers should be vigilant about scams in the January 2025 sales (Image: Getty)
Lloyds Bank has issued a stern warning to those hunting for January sales bargains, urging them to be cautious of unscrupulous retailers promising significant online discounts. The bank disclosed that the number of rogue retailers detected in January 2024 was an astonishing 140 per cent higher than the average monthly figure throughout the year.
This indicates that criminals are exploiting people’s desire to bag a post-Christmas bargain in the New Year sales. Lloyds revealed that its customers had lost an average of £545 to online shopping scams, leading to calls for increased vigilance when making online purchases this month.
A common scam involves fraudsters creating fake websites to trick shoppers into purchasing items that are never dispatched. This type of scam can result in a spike in credit card transaction disputes in January, with Lloyds noting a 40 per cent increase in disputes in January 2024 compared to the usual monthly average.
The banking giant also cautioned that scammers might promote heavily discounted goods on social media platforms. Clothing is often the most frequently bought item from rogue retailers, closely followed by jewellery.
According to Lloyds’ credit and debit card customer data, scams by rogue retailers have resulted in a staggering £8.5 million in losses between January and November 2024. In response, the bank has established an industry working group in collaboration with payment companies to protect shoppers by reporting and blocking transactions with known fraudulent websites.
Gavin Evans, senior manager for consumer cards at Lloyds, cautioned: “The January sales can be a good time to grab bargains, but it’s also a popular It’s a prime time for unscrupulous retailers, who aim to con unsuspecting shoppers and make off with their hard-earned money.
“To avoid falling prey, verify the web address before making a purchase to ensure it’s legitimate and corresponds to the shop you intend to buy from, particularly if you accessed the website through an advert or social media post.
“Bear in mind that if something seems too good to be true, it usually is. If you’re ever in doubt, consider purchasing from a place you trust instead,” advises Simon Forbes, Divisional President, UK and Ireland at Mastercard.
He added: “It’s the season when rogue retailers are most active. At Mastercard, we strive to assist banks like Lloyds in identifying scam payments before they occur. To avoid being scammed this festive season, scrutinise who you are buying from, be wary of offers that are significantly cheaper than elsewhere and report any suspicious transactions to your bank.”
Lloyds has provided guidance for victims, stating: “Firstly, attempt to contact the retailer directly to explain what has transpired and request a refund. If the retailer doesn’t respond or refuses to refund you, report the transaction to your bank. Most banks, including Lloyds, allow you to report transactions online via your mobile banking app. “Your bank will then take over, typically raising a chargeback claim to potentially retrieve your money. For instance, you can do this in the Lloyds app by tapping the transaction you wish to dispute, selecting ‘help with this transaction’ and following the steps.
“On screen, there’s an option to raise a dispute. “If you used a Mastercard, Visa or American Express credit or debit card to make the purchase, you may be able ask your bank to file a chargeback claim. To do this, you’ll need to provide your bank with the details of the transaction you’re disputing (including the retailer’s name, date of the transaction and the amount), and a description of what went wrong with the item you ordered.”
For Lloyd’s official anti-scam .