Lloyds Banking Group has announced the upcoming launch of a new Scam Check tool designed to protect customers from online shopping fraud. The feature will be integrated into certain payment journeys within the Lloyds, Halifax, and Bank of Scotland mobile apps, intervening when a customer appears at risk of transferring money to a fraudster.
How Scam Check Works
When a customer attempts to make a payment to a new recipient for an online purchase, and the system suspects fraudulent activity, the tool will present a series of straightforward questions and prompt the user to upload screenshots of the item they intend to buy. This process allows the bank to gather more information before the transaction is completed.
Lloyds confirmed that Scam Check will harness artificial intelligence to analyse the submitted information and deliver a clear warning if the deal appears suspicious. In many cases, the system will step in before customers even realise they may be falling victim to fraud. The tool will scrutinise item details and flag potential 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 or urgency tactics.
Prevalence of Online Shopping Scams
The new technology arrives as online shopping scams continue to rank among the most common methods criminals use to target unsuspecting individuals. According to Lloyds, approximately seven in ten (68%) of all fraud reports submitted by its customers involve shopping scam cases originating on Meta platforms such as Facebook, Instagram, or WhatsApp.
In 2025, Lloyds blocked more than £1 billion in attempted fraud, investing £100 million into new fraud prevention technology. On average, 23,551 transactions are scrutinised every minute for suspicious activity. Customers can now easily identify when the bank's fraud prevention systems are operating in the background, thanks to the presence of the anti-fraud DarkHorse logo.
Additional Fraud Prevention Measures
This substantial investment comes as Lloyds' fraud prevention teams engage with thousands of customers each month, many seeking reassurance or guidance regarding suspicious activity. Behind the scenes, the bank has also rolled out new AI-powered technology to assist staff during live customer interactions, enabling them to review transactions, identify warning signs, and evaluate potential scam risks in real time. The system is expected to dramatically reduce response times, allowing colleagues to focus on providing direct customer support.
Statements from Officials
Liz Ziegler, fraud prevention director at Lloyds, said: “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.”
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.”
