Lloyds Banking Group has announced a significant update for customers of Lloyds, Halifax, and Bank of Scotland. The group is introducing a new Scam Check tool designed to protect customers from online shopping fraud before they transfer money to criminals.
How Scam Check Works
The tool will be integrated into certain payment journeys within the Lloyds app. When a customer attempts to pay a new seller for an online purchase, Scam Check will intervene if it detects a potential scam. Customers will be asked a series of straightforward questions and prompted to upload screenshots of the item they intend to buy. The feature will also be available to users of the Halifax and Bank of Scotland apps.
Scam Check uses artificial intelligence to analyze the information provided and deliver a clear warning if the transaction appears suspicious. In many cases, it will step in before customers even realize they could be falling victim to fraud. The system scrutinizes item details and flags warning signs, including prices that seem too good to be true, newly created seller accounts with no ratings, vague item descriptions, requests for deposits, and high-pressure sales tactics.
Rising Threat of Online Shopping Scams
Lloyds noted that online shopping scams remain one of the most common methods criminals use to target victims. Of the fraud reports submitted by Lloyds customers, approximately seven in ten (68%) involve shopping scams originating on Meta platforms such as Facebook, Instagram, or WhatsApp. In 2025, Lloyds stopped more than £1 billion in attempted fraud, investing £100 million in cutting-edge fraud prevention technology.
The bank now scrutinizes an average of 23,551 transactions every minute for suspicious activity. Customers can identify when the bank's fraud prevention technology is active through the anti-fraud DarkHorse logo. Lloyds' fraud prevention teams speak to thousands of customers each month, offering reassurance and guidance regarding suspicious activity.
AI-Powered Support for Staff
Lloyds has also deployed new AI-powered technology to assist staff during live customer interactions. The system helps review transactions, identify warning signs, and evaluate potential scam risks in real time. This is expected to reduce response times and allow colleagues to focus on providing customer support.
Liz Ziegler, fraud prevention director at Lloyds, said: "Scams are becoming more convincing, targeted, and emotionally manipulative, making them harder to spot. We need to use all the tech and tools we can to fight back. Scam Check will be the newest way we address the enormous threat of online scams, designed to step in at the right moment, spot the warning signs earlier, and support customers before money can leave their account. By continuing to combine cutting-edge technology with the expert judgement of our colleagues, we're helping customers stay one step ahead of scammers."
Lord David Hanson, Minister for Fraud, commented: "Fraudsters will stop at nothing to take your hard-earned money. I welcome Lloyds' plans to introduce Scam Check and urge everyone to Stop! Think Fraud to protect themselves and those close to you. We're investing £250 million as part of our new Fraud Strategy to crack down on this criminality. We will use every tool at our disposal to dismantle criminal networks, bring fraudsters to justice, and strengthen protections for victims."
