Lloyds Bank has issued a stark warning to online shoppers, revealing that nearly seven in 10 shopping scams reported by its customers begin on Facebook, Instagram, or WhatsApp. The bank stated that online shopping fraud remains one of the most significant threats facing consumers, with 68 per cent of shopping scam reports linked to platforms owned by Meta.
New Scam Check Tool
The warning comes as Lloyds prepares to launch a new Scam Check tool designed to identify potentially fraudulent purchases before customers send money to a seller. This feature, integrated into certain payment journeys within the Lloyds banking app, aims to help customers spot warning signs before funds leave their accounts.
When customers attempt to make a payment to a new recipient for an online purchase, they may be asked a series of questions and prompted to upload screenshots of the item they plan to buy. The bank explained that the tool uses artificial intelligence to analyse the information and detect potential signs of fraud.
Warning Signs Identified
Among the red flags the tool will look for are:
- Prices that appear too good to be true
- Sellers with newly created accounts
- A lack of reviews or ratings
- Requests for deposits
- Vague item descriptions
- Pressure to complete a purchase quickly
Lloyds said the technology is designed to intervene before customers realise they may be dealing with a scammer.
Fraud Statistics and Investment
According to Lloyds, shopping scams account for around seven in 10 fraud reports made by its customers. The bank prevented more than £1 billion of attempted fraud during 2025 as criminals employed increasingly sophisticated methods to target consumers. As part of its anti-fraud efforts, Lloyds has invested £100 million in fraud prevention technology and checks an average of 23,551 transactions every minute for suspicious activity.
Liz Ziegler, Fraud Prevention Director at Lloyds, commented: "Scams are becoming more convincing, targeted and emotionally manipulative, making them harder to spot and 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."
Government Response
Fraud Minister Lord David Hanson welcomed the move and urged consumers to remain vigilant. He said: "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." The UK Government recently unveiled a new Fraud Strategy backed by £250 million of investment aimed at tackling organised criminal networks and strengthening protections for victims.
Consumers are encouraged to take extra care when buying items through social media, particularly when dealing with unknown sellers, paying by bank transfer, or being pressured to act quickly. Always check seller reviews, be wary of unusually low prices, and use secure payment methods wherever possible.
