Thousands of Lloyds Bank customers successfully claimed back approximately £2 million through card chargebacks between January and September this year. The average refund amount was £35, and common reasons for these claims included purchases failing to arrive, receiving poor-quality imitation items, or discovering unauthorized subscriptions.
Chargebacks are a consumer protection mechanism allowing shoppers to recover funds when transactions go wrong. Lloyds highlighted that scammers are actively targeting popular items like specific toys and advent calendars, as well as perennial favorites such as jewelry and gadgets, often advertising heavily discounted products on fraudulent websites and social media to lure customers.
These scam websites typically promise popular goods at significant discounts, urging immediate purchases. After customers enter their payment details, the items either never arrive or are substandard imitations.
When such purchases are made with debit or credit cards, customers can initiate a chargeback claim with their bank if the goods are not received or are not as described. Lloyds Bank allows customers to request a chargeback via its mobile app, and those using credit cards may also have recourse under Section 75 of the Consumer Credit Act.
Fraud prevention experts at Lloyds warned that the busy Christmas shopping season, with its abundance of online deals, makes it easier for consumers to be overwhelmed and miss warning signs of fraudulent activity. They emphasized that scammers skillfully blend into social media environments, making it difficult to distinguish legitimate offers from deceptive ones.
The bank advised shoppers to meticulously check website addresses, be wary of social media advertisements by verifying deals directly with retailers, be skeptical of offers that seem too good to be true, read the fine print carefully, seek independent reviews, and report any suspicious activity to their bank immediately to facilitate refunds and protect others.
