People searching for a bargain are being warned by a major bank to check deals are genuine and be careful how they pay, after it recorded a jump in purchase scams.
HSBC UK said that, according to its internal data, online purchase scams increased by more than 20% in March compared with the previous month, reaching the highest number of cases it has seen in more than 18 months.
It is warning people looking to book bargain bank holiday getaways or holidays over the summer to watch out for scams.
A YouGov survey of more than 2,100 people in April, commissioned by HSBC UK, found that just over a third (36%) of people would always go through the approved payment process when paying for goods or services from an online provider.
Ruining a romantic bank holiday weekend away or a family holiday is purely collateral damage to a scammer— David Callington, HSBC UK
More than two-fifths (44%) would consider taking the payment offline if it meant they could potentially secure a bargain.
David Callington, HSBC UK’s head of fraud, said: “Scammers are devious criminals who use a range of techniques to steal money from people without any concern for the mental or financial wellbeing of their victims.
“Ruining a romantic bank holiday weekend away or a family holiday is purely collateral damage to a scammer. They are only interested in getting your money, not the impact it will have on you, your family or your finances.
“With last-minute arrangements being made for the bank holiday, and with the school summer holiday approaching, the temptation to snap up a bargain might in fact lead you to losing all of the money you send as a payment.
“Whether people are booking to stay at a property through dedicated websites, or buying new or used items through online marketplaces, many of the platforms give you the opportunity to connect with the provider or seller before making a payment, and many people are sadly willing to put hundreds or even thousands of pounds at risk by agreeing to take the payment offline, outside of the authorised process.
“By doing this, you are effectively turning it into a private agreement and losing the protection the platform has in place should the sale be a scam, isn’t as described or you need to cancel.”
Here are some warning signs that a transaction may potentially be a purchase scam, according to HSBC UK:
– You are asked to send money via bank transfer rather than using a card.
– The offer or discount seems too good to be true.
– Time pressures are put on you to encourage you to act quickly.
– The seller tries to persuade you to send money before receiving a service.
– Remember that bogus deals can be advertised on social media or other online marketplaces, or in some cases through legitimate-looking websites that have been set up by fraudsters.
HSBC is reminding people to stick to trusted websites and safe ways to pay.
It suggests that people should take their time to make purchase decisions.
Doing further research and asking an independent professional to authenticate goods can also help people to check that items or services are genuine, the bank suggested.
