January sales bargain hunters are being warned by a bank to watch out for rogue retailers claiming to offer big discounts.
The number of rogue retailers identified by Lloyds Banking Group in January 2024 was 140 percent higher than the normal monthly average across the year, indicating that retailers targeted shoppers looking for deals during the post-Christmas sales.
Rogue retailers deceive shoppers into making purchases by creating fake websites, made to look like popular high-street brands.
But after shoppers have made the purchase, the scammer pockets the cash without sending the item.
The scam can cause credit card transaction disputes to peak in January, with Lloyds seeing a 40 percent increase in disputes in January 2024, compared to the normal monthly average.
Scammers may also offer heavily-discounted goods via social media.
January sales bargain hunters are being warned by a bank to watch out for rogue retailers claiming to offer big discounts (file image)
Rogue retailers are deceiving shoppers into making purchases by creating fake websites, made to look like popular high-street brands (file image)
Clothing tends to be the most common item purchased from the rogue retailers, followed by jewellery, Lloyds said.
Lloyds said rogue retailer scams have cost £8.5 million between January and November 2024, based on the group’s own credit and debit card customer data.
The bank has established an industry working group, working with payments companies to protect shoppers by reporting and blocking transactions with known fake websites.
Gavin Evans, senior manager for consumer cards at Lloyds, said: ‘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.
‘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.’
