Protecting yourself from shopping fraud
Posted by Heath Robinson on September 11th, 2024.
Your safety and the security of your money is our highest priority, and we implement stringent safeguarding measures to protect all our customers. However, it’s also important for you to take steps to shield yourself from fraud.
To assist you in identifying potential scams and staying secure, we are publishing a series of articles focused on fraud protection. This article specifically addresses shopping fraud and scams.
What is shopping fraud?
Shopping fraud transpires when a fraudster impersonates a legitimate entity to fool you into purchasing a non-existent item or service.
The perpetrator’s aim may be financial gain or the collection of sensitive data, like credit card information, for use in subsequent fraudulent activities.
Perpetrators of shopping fraud schemes are often adept at creating seemingly authentic websites and can even secure ad placements on popular social media platforms and search engines, further complicating the task of identification.
Some scammers will also impersonate private sellers, who may insist on you paying in advance or fabricate reasons to prevent you from inspective the item you wish to purchase in person.
An example of shopping fraud
Kial is a keen surfer and spotted an ad on Instagram advertising a huge sale on surfing equipment from a well-known brand.
Upon clicking the advert, he was directed to what appeared to be the brand’s official website. The site was well-crafted and professional, with the brand’s name prominently displayed in the URL.
With the sale due to end later that day and not wanting to miss out on the large discounts on offer, Kail proceeded to purchase several items totalling around £500 with his card. Short after he received an email suggesting there had been a website checkout error, and his payment had not been completed. The email outlined two options: either make the payment via bank transfer or wait for the error to be fixed, at which point the sale may be over.
Resigned to the situation, Kail initiated a bank transfer to cover his purchases and promptly received a confirmation email.
However, the package never came. When attempting to find the contact information from the website several weeks later, he discovered that the site had been taken offline —he had fallen victim to a scam.
Five tips on how to protect yourself from shopping fraud
- Double check any websites
If you’re purchasing from an ecommerce platform or online retailer, double check that the site is genuine.
Look for a small padlock icon next to the web address. Its presence signifies the site is secure any site without this icon could leave your information vulnerable to interception.
Despite the padlock, exercise caution. A secure site can still be a front for a scam. Thoroughly research the website and brand to ensure its legitimacy.
Verify you are on the correct website. Scammers can create sophisticated clones of websites with very similar addresses.
In addition, exercise caution when clicking on a link, especially from emails or online ads. They might lead to imitation sites. Manually type in the web address of the site you intend to visit to help prevent such scams.
- 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 often use stolen images to fabricate their online persona. You can use tools such as TinEye or reverse.photos to cross-check whether the image has been used elsewhere on the web.
Another method is to check the seller’s presence on social media platforms like Facebook Marketplace. Taking a look at their Facebook profile and activity could provide clues to the authenticity of the listing.
If you do decide to buy from a private seller, arrange to meet them in person and inspect the item before making payment.
- Watch out for discounts and deals
Be wary of steep discounts and overly generous deals, they may be tactics employed by scammers to lure you in.
Similarly, time-sensitive promotions are often employed by fraudsters to compel you to act quickly. The urgency of such offers is a common sales tactic and not inherently indicative of fraudulent activity. Nonetheless, when financial transactions are at stake, prudence dictates a thorough, unhurried approach.
- Be careful when paying
Pay with a credit or debit card, or another reliable form of payment, when making a purchase on a website, for enhanced security and protection.
Fraudulent entities often request bank transfers for immediate access to funds. Although online thieves may obtain your card details, it can take them some time before they are able to take payment from it.
Sometimes a bank transfer maybe required when purchasing from a private seller. To safeguard your transaction, refrain from paying in advance, particularly if you haven’t physically inspected the item. Only make the payment once you’ve verified the authenticity of the item and confirmed its availability for collection.
- Don’t give away too much information
Carefully consider what information a seller is asking from you. Providing certain personal details, such as your address or banking information is often necessary. However, exercise caution if you are asked for any information which isn’t required to make the 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.
It is important to use unique passwords for different accounts. If the same password is used and compromised, it puts all of your accounts at risk.
If someone targets you
If you suspect that you may have been a victim of shopping fraud, get in touch with your bank immediately and inform them your debit or credit card details may be compromised so they can take action.
You should also seek contact with any other parties which may be involved. This could be the marketplace which listed the scam, a social media platform hosting fraudulent adverts or a brand which is being impersonated.
If you believe that a document or sensitive information has been stolen, inform the police or use the Action Fraud online reporting tool.
More information on identity 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, if you’re worried that your TorFX account may be at risk, contact us as soon as possible and we’ll be happy to help. You can also download our app or use our online platform to keep an eye on your transfers.
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