Lloyds Bank has published a new report highlighting scams on e-commerce websites. According to the report, thousands of customers have been lured into shopping online by fraudulent websites showing fake items. The bank estimates that $8 million went into the hands of scammers last year in the UK alone.
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The scam details are simple: All it takes is to create a website with images of the products. The scammers masquerade as popular brands on social media and put out advertisements based on their shopping preferences. Several of them launched websites with new brand names, copying the product images from other sites, reported Lloyds Bank.
Cheap Bargains Led to $8 Million Worth of Fraud: Lloyds Bank
The banking giant revealed that scammers offer heavy discounts on prices, luring customers into buying their products. Lloyds Bank reported that these types of scams have risen 211% compared to the previous year. Customers with access to credit and debit cards have been fooled into buying items that never arrive. Customers are mainly pressured to place orders as the website shows countdown timers.
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“When we spot a bargain online, it can be tempting to snap it up. But it’s important to remain vigilant and know that rogue retailers use social media to promote significant discounts on goods they have no intention of delivering. Remember the old adage — if something appears too good to be true, it usually is,” cautioned Lloyds Bank to customers.
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Lloyds Bank also warned that domains that end with .net or .org are most likely to be fraudulent websites. “Domains that end in .net or .org are rarely used for online shopping so you may want to treat them with a healthy dose of skepticism. If prices are suspiciously low and you are being pressured by a countdown timer that should raise alarm bells.”
