The report outlines how numerous individuals have fallen victim to fraudulent websites, which display counterfeit products to entice buyers. According to the bank’s estimates, scammers in the UK made off with approximately USD 8 million last year.
The scam involves creating fake websites that display images of products and using social media to advertise these items. Scammers often impersonate well-known brands and tailor advertisements to users’ shopping habits. In many cases, they launch new websites under different brand names while copying product images from legitimate sources, the report noted.
Lloyds Bank observed that scammers frequently offer substantial discounts, enticing customers to make purchases. The report highlighted that such scams have surged by 211% over the past year. Buyers using credit and debit cards are commonly tricked into placing orders for items that are never delivered. The report also mentioned that these fraudulent websites often use countdown timers to create a sense of urgency.
The bank advised customers to stay cautious when encountering seemingly unbeatable deals. Officials highlighted that, while it’s tempting to jump on a bargain, it’s crucial to stay alert. Fraudsters use social media to promote large discounts on goods they never intend to send. They also warned that if something looks too good to be true, it likely is.
Additionally, the report pointed out that websites with domain names ending in .net or .org are often linked to fraudulent activity, as these domains are not typically associated with online retail. If the prices seem unusually low and a countdown timer is pressuring users, it’s a strong indication that the site may not be legitimate.
In February 2024, Lloyds Bank released new data on romance scams, which showed that the number of people falling victim to these scams has increased by 22% in 2023 compared to the previous year. The average amount lost to these scams was GBP 6,937, which is lower than the previous year's average loss of GBP 8,237.
Romance scams are a very personal type of scam, where fraudsters target people looking for love. They often use fake photos and information on social media and online dating apps to lure in potential victims. The process can last for long periods, as the fraudster has to build a trusting relationship with their victim.
However, scammers usually have numerous excuses for why they can't meet in person or show their faces on video calls. In the end, they ask for money, usually claiming family issues, medical bills or needing money to arrange travel to meet up with the victim. The amount of money scammers ask for may start small but can build up over time.
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