Lloyds Bank has issued a caution to shoppers seeking New Year bargains, warning of a surge in scams by rogue online retailers. The bank reported a 140% rise in fraudulent retailer activity in January 2024 compared to the yearly average.

Criminals are targeting bargain hunters with fake websites offering heavily discounted items that are never delivered. This scam has left customers losing an average of £545, prompting increased calls for vigilance during online purchases.

Lloyds also noted a 40% jump in credit card disputes in January due to fraudulent transactions, with clothing and jewellery being the most common items purchased from fake retailers.

Between January and November 2024, scams by rogue retailers caused losses totaling £8.5 million. To combat this, Lloyds has partnered with payment providers to identify and block fraudulent transactions, safeguarding customers during the sales season.

Gavin Evans, senior manager for consumer cards at Lloyds, cautioned: "The January sales can be a good time to grab bargains, but it's also a popular It's a prime time for unscrupulous retailers, who aim to con unsuspecting shoppers and make off with their hard-earned money.

"To avoid falling prey, verify the web address before making a purchase to ensure it's legitimate and corresponds to the shop you intend to buy from, particularly if you accessed the website through an advert or social media post.

"Bear in mind that if something seems too good to be true, it usually is. If you're ever in doubt, consider purchasing from a place you trust instead," advises Simon Forbes, Divisional President, UK and Ireland at Mastercard.

He added: "It's the season when rogue retailers are most active. At Mastercard, we strive to assist banks like Lloyds in identifying scam payments before they occur. To avoid being scammed this festive season, scrutinise who you are buying from, be wary of offers that are significantly cheaper than elsewhere and report any suspicious transactions to your bank."

Lloyds has provided guidance for victims, stating: "Firstly, attempt to contact the retailer directly to explain what has transpired and request a refund. If the retailer doesn't respond or refuses to refund you, report the transaction to your bank. Most banks, including Lloyds, allow you to report transactions online via your mobile banking app. "Your bank will then take over, typically raising a chargeback claim to potentially retrieve your money. For instance, you can do this in the Lloyds app by tapping the transaction you wish to dispute, selecting 'help with this transaction' and following the steps.

"On screen, there's an option to raise a dispute. "If you used a Mastercard, Visa or American Express credit or debit card to make the purchase, you may be able ask your bank to file a chargeback claim. To do this, you'll need to provide your bank with the details of the transaction you're disputing (including the retailer's name, date of the transaction and the amount), and a description of what went wrong with the item you ordered."