Customers of Lloyds Banking Group have successfully reclaimed a staggering £2 million through a vital payment protection scheme since the start of the year, with a fresh wave of claims anticipated as the Black Friday shopping frenzy begins.
What is a chargeback and how does it work?
New data from the bank reveals that between January and the end of September 2024, customers filed for chargebacks on card payments where their online shopping went wrong. The average claim value was £35.
A chargeback is a form of consumer protection on card payments that can help shoppers get their money back when a purchase turns sour. Common problems triggering these claims include items that never arrive, products that are poor-quality counterfeits, or unauthorised subscriptions set up by deceptive retailers.
Black Friday warning: High-risk items identified
With Black Friday on November 28, Lloyds is warning customers to be extra vigilant. The bank's fraud experts predict a spike in fraudulent activity, with scammers targeting shoppers seeking popular gifts.
Fraudsters are creating sophisticated fake websites that offer heavy discounts on in-demand products to lure bargain hunters. Liz Ziegler, Fraud Prevention Director at Lloyds, stated: "Everyone is busy hunting for the perfect Christmas gifts and, with so many deals, offers and choices popping up online, it is easy to feel overwhelmed."
She added, "Scammers know how to blend in on social media and the warning signs of a dodgy website or advert can be easy to miss."
Specific items highlighted as prime targets for scams include:
- Labubu dolls and Jellycat toys
- High-end advent calendars
- Classic Black Friday products like jewellery, perfume, and tech gadgets
These fraudulent sites often use pressure-selling tactics, urging customers to "act quickly" on a deal. They may also advertise through social media posts. Once payment details are entered, the customer either receives nothing or a cheap imitation.
How to protect yourself and claim your money back
If you pay by debit or credit card and an item doesn't arrive or is not as described, you can request a chargeback from your bank. Lloyds customers can initiate this process directly through the bank's mobile app.
For those who pay by credit card, there is an additional layer of protection. You may be able to raise a claim under Section 75 of the Consumer Credit Act, which holds the credit card company jointly liable for breaches of contract by the retailer.
To shop safely online this festive season, Lloyds recommends following these crucial tips:
- Always double-check the website address to ensure you are on the retailer's official site.
- Be wary of adverts on social media. If you see a deal, search for the retailer yourself to confirm its legitimacy.
- Remember that if a deal seems too good to be true, it probably is. Large discounts on sought-after items are a major red flag.
- Read the small print, especially on 'free' offers that may hide subscriptions or extra charges.
- Look for independent reviews from other customers before making a purchase.
- Report any suspicious activity or failed transactions to your bank immediately. This can help you get your money back and protect others.
