Lloyds Banking Group has issued a warning over purchase scams on social media, which are expected to cost UK consumers more than £27 million this year. The bank's analysis of reported cases among its 25 million retail customers found that two-thirds of such scams originate on Facebook (including Facebook Marketplace) and Instagram, both owned by Meta.
Scammers lure victims with low prices or exclusive items advertised on social media, then request payment via bank transfer, which offers little consumer protection. The average loss per victim is around £570, with clothes, trainers, gaming consoles, and mobile phones among the most commonly falsely advertised goods.
Liz Ziegler, fraud prevention director at Lloyds Banking Group, described social media as the 'Wild West of online shopping' and called on tech companies to do more to stop scams at source and contribute to refunds. 'Banks have been at the forefront of tackling the epidemic of scams, but they cannot fight it alone,' she said.
Lloyds advised shoppers to be wary of deals that seem too good to be true, to use secure payment methods like credit cards, and to research sellers before purchasing. A Meta spokesperson said the company blocks scams, requires FCA authorisation for financial advertisers, and runs consumer awareness campaigns.
