TSB issues warning of common purchase scams as shoppers gear up for Christmas

TSB has issued a warning that purchase scams have accounted for more than half (55%) of authorised push payment (APP) fraud cases so far this year.

As shoppers gear up for (November 29) and the spending spree, the bank analysed cases from January to October 2024 where customers were duped into transferring money to fraudsters. According to TSB's analysis of customer data, scammers often offer tickets for concerts and football matches, as well as clothing including trainers, children’s toys, games consoles, designer items, and electrical goods.

Fraudsters may also pretend to sell cars and motorbikes, asking for a deposit, TSB warned. Many of these scams originate on social media platforms. New mandatory reimbursement rules came into effect in October, overseen by the Payment Systems Regulator (PSR).

Under these rules, banks must reimburse APP fraud victims unless the customer has been grossly negligent. These protections apply to transfers made to and from UK bank accounts from October 7 onwards and do not apply retrospectively.

Reimbursement is mandatory up to the value of £85,000 and firms can also opt to apply an excess of up to £100. Some account providers, including TSB which has had its own fraud refund guarantee since 2019, have pledged to waive the £100 excess.

TSB is taking a firm stance on purchase fraud, confirming that it will review each claim outside of standard regulations individually. The bank revealed shocking statistics indicating that almost half (48%) of purchase fraud cases involve sums of £100 or less.

In one instance, a man bought a concert ticket for £50 on the day of the event. After receiving a screenshot as supposed proof and completing payment, he found himself blocked by the seller.

Nicola Bannister, TSB's director of customer support, issued a strong warning in the face of rising online shopping scams, stating: "At this time of year, we’re all shopping online more than ever – but it’s important to be wary of scams on social media platforms, as crooks are listing items that simply don’t exist."

She further advised: "We’d advise sticking to reputable websites and only buying an item you’ve found on a social media platform if you can view it in person first."