As the festive season approaches, TSB bank has issued a warning about the prevalence of purchase scams, especially as shoppers gear up for Black Friday and Christmas shopping. According to the bank’s analysis of cases between January and October 2024, more than half (55%) of authorised push payment (APP) fraud cases recorded by TSB this year have been related to purchase scams.
Scammers often target unsuspecting customers with offers for tickets to concerts and football matches, clothing items like trainers and designer goods, children’s toys, games consoles, and electrical products. They may also claim to be selling cars or motorbikes and request a deposit. The bank highlighted that many of these fraudulent transactions originate on social media platforms.
In response to the increase in purchase scams, mandatory reimbursement rules were introduced in October, overseen by the Payment Systems Regulator (PSR). Under these new rules, banks are required to reimburse victims of APP fraud, unless the customer has been found to be grossly negligent. The reimbursement covers transfers to and from UK bank accounts made from October 7 onwards, up to the value of £85,000.
TSB, which has been offering its own fraud refund guarantee since 2019, has committed to waiving the £100 excess that some firms may apply. The bank has stated that it will continue to assess claims outside the scope of the new rules on a case-by-case basis. It was noted that nearly half (48%) of purchase fraud cases handled by TSB were for amounts of £100 or less.
One illustrative case presented by TSB involved a male customer who paid £50 for a concert ticket that was supposed to happen on the same evening. After transferring the money, the seller provided a screenshot of the ticket as proof but then blocked the customer. Nicola Bannister, director of customer support at TSB, emphasised the importance of being cautious when shopping online, especially on social media platforms, where scammers often list non-existent items.
As the holiday season approaches, TSB advised consumers to stick to reputable websites and recommended viewing items in person before making a purchase from social media platforms. With the rise of online shopping, it’s crucial for shoppers to remain vigilant and be aware of potential scams that could compromise their financial security. By staying informed and adopting safe shopping practices, consumers can protect themselves from falling victim to purchase scams during the festive period.