Christmas is approaching, and Nationwide Building Society has issued a timely warning to online shoppers about the growing threat of purchase scams. With many people scrambling to secure the perfect gifts at a discounted price, fraudsters are taking advantage of the festive rush to deceive unsuspecting buyers.
What Are Purchase Scams and How Do They Work ?
Purchase scams typically involve fraudsters posing as legitimate sellers, often offering products at deeply discounted prices. Once a buyer makes the payment, the seller vanishes, and the promised goods never materialize. These scams are particularly prevalent during the holiday season, when consumers are eager to find the best deals. The scammers often ask for payments via bank transfers, a method that offers little to no protection for the buyer. Once the transfer is completed, there’s usually no way to recover the money.
Nationwide’s warning highlights the risks of such scams, which are not just financially damaging, but can also cause significant emotional distress for victims. In 2023, UK Finance reported that £77 million was lost to purchase scams, with scammers making an average of £549 per scam. With the Christmas shopping season in full swing, it is essential that consumers remain vigilant.
Why Credit Card Payments Offer Greater Protection Against Fraud
Nationwide stresses the importance of using credit or debit cards for online purchases, particularly for items valued over £100. Unlike bank transfers, card payments offer greater protection, with consumers being able to request chargebacks if a product fails to arrive or is misrepresented. Furthermore, credit card payments are covered under Section 75 of the Consumer Credit Act, which allows shoppers to challenge payments if goods do not meet expectations. This protection is unavailable when paying by bank transfer.
Given the rising number of scams, using a credit or debit card provides added security, offering a safety net that can make all the difference if something goes wrong. It’s essential to make informed choices and avoid methods of payment that offer no recourse in case of fraud.
Nationwide Tips for Safe Online Shopping
To help consumers avoid falling victim to online scams, Nationwide has provided several key tips to keep in mind while shopping this festive season:
- Be cautious of deals that seem too good to be true : Scammers often use prices that are too low to lure buyers. If a deal seems too good to be true, it probably is.
- Avoid paying by bank transfer : Whenever possible, use a credit card for purchases over £100 and up to £30,000
- Take your time : Scammers often create a false sense of urgency, pushing you to make quick decisions. If you feel rushed, it’s better to step back and reconsider your purchase.
- Do your research : Before buying anything, particularly expensive items, take the time to research the seller and the product. Look for reviews, check the legitimacy of the website, and verify contact information.
- Verify the legitimacy of the seller : Ensure that the website you’re buying from is authentic. Look for trusted security logos and verify the company’s credentials.
- Check for independent reviews : If buying things like concert tickets or vacations, ensure that the provider is registered with travel protection agencies such as ABTA or ATOL.
- Do not share one-time verification codes : These codes are used to verify your purchase, so keep them confidential to avoid falling victim to fraud.
By following these simple yet effective steps, shoppers can reduce the risk of falling for scams, ensuring a safer online shopping experience this holiday season. With fraud on the rise, taking extra precautions now can help avoid a Christmas catastrophe.
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