Shoppers warned of scams threat as fraudsters get head start on Black Friday

Shoppers are being urged to remain vigilant ahead of Black Friday with hundreds of scams involving purchases already reported to HSBC UK this month.

Purchase scams are when a customer pays for an item or service which does not materialise and their money is lost.

Many Black Friday sales began at the start of the month and fraudsters have been exploiting those seeking genuine bargains with ‘deals that don’t exist’.

HSBC UK data shows that, in the first two weeks of November, there were four times as many purchase scams reported to the bank than any other type of scam.

During the same period, the average loss to a purchase scam was £426. Individual losses range from as little as £10 for phony nail bookings to much larger amounts for non-existent items like washing machines, tickets and cars.

David Callington, HSBC UK’s Head of Fraud, said:

“Sadly, we’ve seen fraudsters getting a head start on Black Friday, and we’ve had hundreds of purchase scams reported to us already this month. My fear is that they’ll be getting a bumper payday on Black Friday and over the weekend, funded by the hard-earned cash of unsuspecting shoppers.

“These fraudsters do not give their victims a second thought. They have no sympathy for families struggling with the cost of living or for those whose Christmas is ruined by their despicable actions.

“The average victim loses hundreds of pounds to these scams, which for many people is equal to the majority of their monthly rent or mortgage repayment, money they simply can’t afford to be without.

“I would urge those seeking a Black Friday bargain this year to be on the lookout for signs that what appears to be an extraordinary deal is, in fact, a scam. There are simple things you can do to protect yourself, such as researching retailers and using safe ways to pay such as debit or credit cards.”

Typically, purchase scams:

1. ask you to send money via bank transfer rather than using a card or cheque.
2. offer a too-good-to-be-true deal or discount.
3. have ’limited availability’, or are a ’special offer’ to encourage you to act quickly.
4. persuade you to send money before receiving a service.
5. are advertised on social media or other online marketplaces, or in some cases through legitimate looking websites that have actually been set up by fraudsters.

Seven top tips - remember to:

1. use safe sites when shopping online.
2. use safe ways to pay, such as your debit or credit card.
3. check the returns and cancellations policy.
4. research the retailer online to make sure they’re legitimate.
5. stop and think - would you be willing to send cash in the post for an item you’ve ordered?
6. research and check the validity of the item before paying - ask to see it if possible.
7. approach an independent professional to authenticate the goods or services you’re purchasing.