What is it?
Online shopping provides criminals with an opportunity to trick people into paying for goods and services that don’t exist, often advertised via auction sites or social media with images taken from genuine seller’s to convince you they’re the real deal. Criminals also use cloned websites with slight changes to the URL to trick you into thinking you’re purchasing from the genuine site. They may also ask for payment prior to delivery and send you fake receipts and invoices that appear to be from the payment provider.
Types of fraud include buyers paying deposits for pets that don’t exist, DIY equipment purchases and electronic devices such as games consoles, mobile phones and other devices. Another tactic criminals use to trick people into falling for fraud is to ask for payment for courier services or insurance when buying and selling online.
WHAT TO LOOK OUT FOR:
- Criminals using the same stock imagery on multiple websites.
- Ads on social media, email, or auction sites. Criminals can also use paid advertising and clone genuine websites that lead to a fake platform.
- Links that take you away from the legitimate platform that you’re on for payment.
- Someone asking you for payment for a courier service or insurance when buying and selling online.
- Unprofessional sites. Is it badly laid out? Are there grammatical errors? You can always compare the site to one you trust.
PROTECT YOURSELF FROM PURCHASE FRAUD:
- Be cautious of any “too good to be true” offers.
- Research the company or person you’re purchasing from and read reviews.
- Make sure you’re on a genuine seller’s website by checking the website link and avoid clicking on links from social media, message or email.
- Run a reverse image search on Google to see if photos are being used in multiple places.
- Always use a secure payment platform from trusted retailers – avoid paying with bank transfer. Where possible, use a credit card when making purchases over £100 and up to £30,000.
- You can search for the company’s details on GOV.UK. This will tell you if where you’re purchasing from is a registered company or not.
- The introduction of Lucy’s Law makes it illegal for you to purchase pets sold by a third-party seller. If you’re looking for a pet, buy it directly from a breeder or consider adopting from a rescue centre instead.
Examples of purchase Fraud
Social media
Callum* bought a laptop advertised at a heavily discounted price compared to the one he’d seen on an official website. Upon contacting the seller, he was told that the offer was for a limited time only and if Callum wanted the laptop, he needed to pay quickly by bank transfer to secure the item. Proof of payment was sent by the seller but when Callum asked for a tracking number he received no response. After numerous attempts to contact the seller, Callum searched their name using a search engine and came across numerous bad reviews from other people. He never received the laptop.
Fake websites
Mary* saw an advert for a blender that was selling at a third of the price that she’d seen on other sites. The website looked very professional and included lots of pictures and detail, so Mary proceeded with the purchase, believing she was getting a fantastic deal. Once her purchase was complete, she received an email from the ‘payment provider’ informing her there had been an issue with her payment and that a refund had been processed. Mary tried the purchase again, but little did she know she was paying a criminal – for a second time. She never received the blender.
Tickets
Desperate to secure tickets to a sold-out concert, Nigel* posted a message on social media asking if anyone had tickets that they wanted to sell. Shortly after he was contacted by someone who had a couple of spare tickets. Nigel was elated. After a number of back-and-forth conversations Nigel was convinced the tickets were genuine, so he proceeded to make payment by bank transfer. The tickets never materialised and there was no further contact from the seller.
Find out more information on ticket fraud here.
Pets
After several days of searching, Paula* spotted a listing for a puppy on an online auction site. She contacted the seller and not wanting to miss out, paid a deposit into the account details that the seller provided. Later that day, Paula received a message from the seller requesting additional payment to cover costs for vaccinations and insurance. Desperate for companionship, she proceeded to pay the associated fees. After a few days, Paula got back in touch with the seller but didn’t receive a response. She tried again on numerous occasions but never heard from the seller again. Subsequently the link that she used to view the puppy disappeared.
Holidays
Andrew* was using a holiday booking website he had stumbled across online to book a summer break overseas. He was looking through listings and found one that had everything he wanted and was at a very low price. He didn’t want to miss out on the great deal so he quickly contacted the owner, made a payment and provided his personal information.
Days later he realised he had fallen for a fraud when he couldn’t get hold of the owner and he found out the property was not on any online maps.
Find more information on holiday fraud here.
*These case studies are based on insights from partners
