Bargain hunters looking for January sales are being cautioned by a bank to be vigilant of rogue retailers claiming to offer substantial discounts.
Lloyds Banking Group identified a 140% increase in the number of rogue retailers in January 2024, compared to the average monthly figure across the year. This suggests that these retailers specifically targeted shoppers seeking deals during the post-Christmas sales period.
Rogue retailers trick shoppers into making purchases through counterfeit websites, designed to mimic popular high-street brands. However, once the purchase is made, the scammer takes the money without dispatching the item. This type of scam can lead to a surge in credit card transaction disputes in January, with Lloyds recording a 40% rise in disputes in January 2024, compared to the average monthly figure.
Scammers may also advertise heavily discounted goods on social media platforms. According to Lloyds, clothing is the most commonly purchased item from these rogue retailers, followed by jewellery.
Based on the bank’s own credit and debit card customer data, rogue retailer scams cost £8.5 million between January and November 2024. To protect shoppers, the bank has set up an industry working group in collaboration with payment companies to report and block transactions with known fraudulent websites.
Gavin Evans, senior manager for consumer cards at Lloyds, warned: “The January sales can be a good time to grab bargains, but it’s also a popular time for rogue retailers, who try to scam unsuspecting shoppers and pocket their hard-earned cash. To avoid being caught out, check the web address before making a purchase to ensure that it is legitimate and matches the shop you’re looking to buy from, especially if you opened the website by clicking on an advert or social media post.”
Mr Evans added: “Remember that if something appears too good to be true, it usually is. If you’re ever unsure, consider buying from somewhere you trust instead.”