Lloyds Banking Group has announced a new Scam Check tool designed to protect customers from online shopping scams by intervening before money is sent to criminals. The feature will soon appear in certain payment journeys within the Lloyds app, as well as in the Halifax and Bank of Scotland apps, which are part of the Lloyds group.
How Scam Check Works
When a customer attempts to pay a new recipient for an online purchase, Scam Check assesses the transaction for potential fraud. If it detects suspicious activity, the customer will be prompted to answer a few simple questions and upload screenshots of the item they intend to buy. The tool uses artificial intelligence to scan the provided information and issue a clear warning if the deal appears to be a scam, often stepping in before the customer realizes they might be targeted.
Red Flags Identified by Scam Check
- Price too good to be true – Unrealistically low prices compared to market value.
- New seller account with no ratings – Lack of transaction history or reviews.
- Vague item description – Insufficient or ambiguous details about the product.
- Deposit required – Request for upfront payment before delivery.
- Urgency or pressure tactics – High-pressure language urging immediate payment.
Prevalence of Online Shopping Scams
According to Lloyds, online shopping scams remain one of the most common methods used by criminals. Approximately 68% of fraud reports from Lloyds customers involve shopping scams, with many originating on Meta platforms such as Facebook, Instagram, or WhatsApp. In 2025, Lloyds prevented over £1 billion in attempted fraud and invested £100 million in new fraud prevention technology.
The bank currently checks an average of 23,551 transactions every minute for unusual activity. Customers can see the anti-fraud DarkHorse logo when the bank's fraud prevention technology is actively working in the background.
AI-Driven Support for Colleagues
Lloyds has also introduced new AI-driven technology to assist colleagues during live customer interactions. This system helps review transactions, identify warning signs, and assess scam risk in real time, significantly reducing response times and allowing staff to focus more on supporting customers.
Quotes from Officials
Liz Ziegler, fraud prevention director at Lloyds, stated: “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.”
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.”
