Purchase scams are where goods or services are purchased online, but they never materialise.
How it happens
Often goods or services are advertised for sale on a website or social media account. However, the goods and services purchased in advance by the victim aren’t received. Whilst many online platforms offer secure payment options, the fraudster will circumvent this consumer protection by persuading the victim to send funds via bank transfer.
The rise of buying and selling goods on the internet has increased the success of fraudsters conducting purchase scams. Purchase scams rely on the anonymity of the internet to thrive. Fraudsters will apply pressure and advertise limited time offers to get victims to rush and make payments.
Reporting suspicious media
- Email: If you received an email which you’re not sure about, forward it to the Suspicious Email Reporting Service (SERS): report@phishing.gov.uk
- SMS: You can report spam text directly to your mobile provider by forwarding the message to 7726. All operators now use 7726 as the short code to report spam texts, which is free of charge.
- Online advertisements: If you come across an advert online you think may be a scam, report it through the Advertising Standards Authority (ASA) website. This allows ASA to provide online service providers with the details they need to (if appropriate) remove these from the website.
How to protect yourself
Follow the advice below to help protect yourself and your business from Purchase Scams:
- Always use the secure payment method recommended by reputable online retailers and auction websites. Be wary of requests to pay using bank transfer.
- Do your research and ask questions before you buy, if purchasing an asset, ask to see it in person first and request the relevant documentation to make sure the seller owns it. If purchasing from a company, make sure they’re registered at gov.uk or use the FCA registered of genuine companies and use their link to known fraudulent websites and email addresses.
- If you’re buying an item made by a major brand, you can often find a list of authorised sellers on their official website.
- The web address should begin with ‘https://: the ‘s’ stands for ‘secure’, meaning the connection between your device and the website is secure, please note this doesn’t mean that the website is legitimate.
- Keep your accounts secure by using strong passwords, a password manager and utilise multi-factor authentication where possible.
- Watch out for suspicious emails, calls or text messages; if you receive one, don’t click any links and report it straight away. Make sure to review the webpages and addresses for subtle differences, misspellings or additional words or irregularities.
- Do some research online with the company name + ‘scams’ or ‘fraud’ to see if there’s any negative reviews online.
- Don’t just use the suppliers website-based feedback and reviews from previous customers – these reviews may not be genuine.
- Look at the terms and conditions carefully, especially on websites you haven’t used before.
- Compare the price of goods on the market, if the price looks too good to be true, it probably is.
- Don’t give out any personal details which aren’t necessary for the transaction to be completed.
- Don’t buy from a company that doesn’t offer a refund policy.
- Don’t rush into completing a purchase.
- Never make arrangements with a stranger that is asking for full payment upfront.
How to report it
If you believe you have been a victim of this scam, please report it to us or your bank.
You should also report it to Action Fraud on 0300 123 2040 or via the Action Fraud website. If you are in Scotland, please report to Police Scotland directly by calling 101.