Protecting yourself from shopping fraud

Keeping you and your money safe is our top priority, and we have stringent safeguarding measures in place to help protect all our customers. But there are also steps you need to take to protect yourself from fraud.

To help you identify potential scams and stay safe, we’re publishing a series of articles on fraud protection. This article looks at shopping fraud and scams.

What is shopping fraud?

Shopping fraud is when a criminal poses as a company or private individual to trick you into buying something that doesn’t exist.

The fraudster may be after your money, or they could be trying to steal other valuable information – such as your credit card details – for another scam at a later date.

Some scammers can create websites that look legitimate, so they can be hard to spot. They can also take out ads on large social media sites and search engines, making their website appear genuine.

Criminals posing as private sellers may ask for payment in advance or come up with an excuse that prevents you from viewing the item you want to buy in person.

An example of shopping fraud

Vanessa is a keen cyclist. She was scrolling through her social media feed when she saw an advert promoting a huge discount sale from one of her favourite cycling brands.

She clicked on the advert, which took her to what seemed like the brand’s official website. Sleek and well designed, the site looked legitimate, and the brand name was in the web address.

The discounts were due to end in two days, so Vanessa put together a basket totalling £1,000. She paid with her card but received an email saying there was an error with the website checkout and the payment hadn’t gone through. She could either pay via bank transfer or wait until the checkout was fixed – and risk missing out on the deal.

She paid the £1,000 by bank transfer and got a confirmation email. Later she received an email saying the items had been shipped.

However, her order never arrived. When Vanessa tried to access the website for contact details weeks later, the site had been taken down. It was a fake, and she had sent her money to a scammer.

Five tips on how to protect yourself from shopping fraud

1. Double check any websites

If you’re buying something from an e-commerce site or online retailer, make sure the website is genuine.

Next to the web address there should be a little padlock. This shows that the site is secure from external threats; if there’s no padlock then any details you enter could be at risk.

However, a padlock doesn’t mean the website is safe – it could still be a scam website. Do some research on the website and brand to ensure it’s a genuine company.

If it appears to be a real brand, make sure that you’re on the official website. Scammers can create sophisticated clones of websites with very similar addresses, such as website.com versus web.site.com.

Following on from above, be careful if you’re clicking a link – perhaps from an email or an online advert. These links may take you through to a cloned website, so make sure you navigate to the website you’re going to buy from by typing it into your browser.

2. Try to verify private sellers

There are also ways you can try to figure out if a private seller is genuine. For instance, scammers will usually source a fake profile picture to create an account wherever they’re listing their items. You can use tools such as TinEye or reverse.photos to see if that picture is anywhere else on the internet.

If the seller is listed on a social media site, such as Facebook Marketplace, then you can take a look at their Facebook profile. Sometimes their social media activity can give you a sense of whether or not their profile is genuine.

When you do buy from a private seller, try to meet them in person and view the item before you hand over any money.

3. Watch out for discounts and deals

Scammers will often try to lure you in with great deals and large discounts, so be suspicious of any offers that seem too good to be true.

Likewise, time-sensitive deals are a tactic to apply pressure, rushing you to make a rash decision and clouding your judgement. This is also used as a pushy sales approach, so it isn’t necessarily a sign of a scammer. However, when money is involved it’s always best to take your time and be thorough.

4. Be careful when paying

If you’re purchasing off a website, make sure you pay with a credit or debit card, or another reputable method of payment, as these provide better protection.

Fraudsters tend to favour bank transfers, as they get the money immediately. While a scammer may steal your card details online, it’s unlikely they’ll be able to take payment from it right away.

When you’re buying something from a private seller, bank transfers may be necessary so you need to find another way to protect yourself. Don’t pay for an item in advance, particularly if you haven’t seen it in person. Make sure the item is real and you have it ready to take with you before you send any money to the seller.

5. Don’t give away too much information

There are certain things a legitimate company or private seller will never ask you. Of course you may need to enter your address and bank details, but be suspicious if they ask for something that isn’t required for your purchase.

For instance, no genuine seller needs your mother’s maiden name, or the name of your first pet. In addition, you should never give out your bank PIN or password.

On a similar note, it’s important to use unique passwords on different sites. If you use just one password and that password gets compromised, then your accounts are at risk.

If someone targets you

If you think you’ve been a target of shopping fraud, get in touch with your bank right away. Let them know if your debit or credit card details are compromised so they can take action.

It’s also a good idea to contact any other companies that might be involved or affected, such as a marketplace that listed a scam private seller, a social media company that hosted fraudulent adverts, or the brand that is being impersonated.

Last but not least, report the incident to the relevant legal authority. In the UK, Action Fraud is the centre for reporting fraud and cybercrime.

More information on shopping fraud

In addition to being able to report incidents on Action Fraud, you can also find useful guidance and advice. The site also has a specific page on online shopping fraud, as well as general tips for staying safe from scams.

Similarly, the Metropolitan Police has a useful webpage that looks at shopping fraud, along with other potential dangers when buying or selling things online.

If you’ve been a victim of shopping fraud, or any other kind of crime, you can contact the independent charity Victim Support for specialist help. They also have lots of useful resources on their website.

Finally, as a Currencies Direct client you can always talk to us if you have any concerns about security. If you notice anything suspicious, or you simply want reassurance when sending funds overseas, get in touch with us and we’ll be happy to help.