Shopping in a market. Image by Tim Sandle
Fraudsters are stealing millions from UK shoppers this festive season using increasingly sophisticated tactics powered by AI.
Christmas shopping is in full swing, but alongside the genuine retailers competing for your attention, sophisticated scammers are working overtime to separate you from your money.
The numbers are staggering. Between November 2023 and January 2024, UK shoppers lost over £11.5 million to online shopping fraud, with the average victim losing £695. This year, with a record £26.9 billion expected to be spent online during the Christmas season, fraudsters are deploying even more convincing tactics to exploit the festive rush.
“The problem is now we have so many AI options, it is easier than ever for scammers to create fake sites, fake images, or fake offers,” warns Lior Pozin, Founder of Build Your Store, in a message sent to . “What used to take technical expertise can now be generated in minutes using artificial intelligence. Thai means that more criminals than ever have access to the tools to make their jobs easier, and your life harder.”
Online shopping and auction fraud now accounts for 20% of all online fraud incidents reported to Action Fraud, making it one of the most prevalent threats facing UK consumers. And with broader fraud losses hitting £1.17 billion in 2024, driven partly by a 14% spike in unauthorised card fraud, the scale of the problem is becoming impossible to ignore.
The Five Scams You Need to Watch Out For
1. The Clone Wars: Fake Website Scams
You search for a product, click what looks like a legitimate retailer’s website, and everything appears normal. The logo is correct, the layout is professional, even the customer reviews seem genuine. But look closer at the URL, is it really the right address?
Fraudsters are creating pixelperfect copies of legitimate retailer websites, often paying for advertising to ensure their fake sites appear at the top of search results. These cloned sites collect your payment information and personal details, but the goods you’ve ordered never arrive. By the time you realise something’s wrong, the website has vanished.
2. The Delivery Text That Isn’t
Your phone buzzes. “Your parcel is being held, additional customs fees required.” The message looks official, includes tracking numbers, and creates urgency. But it’s a trap.
Fake delivery notifications are one of the most common scams hitting UK shoppers this Christmas. These messages contain links to fraudulent payment portals designed to harvest your banking details. Some even mimic the exact formatting and sender names used by legitimate courier companies.
3. Social Media Storefronts That Disappear
Scrolling through Facebook Marketplace or Instagram Shopping, you spot the perfect gift at an unbeatable price. The seller has hundreds of positive reviews, professional product photos, and responds quickly to messages. What could go wrong?
Scammers are increasingly sophisticated in their use of social media platforms, creating temporary storefronts that look entirely legitimate. They use stolen images, fabricated reviews, and professional communication to build trust, then vanish the moment you’ve transferred payment.
4. Charity Scams Exploiting Goodwill
The festive season brings out the best in people, and scammers know it. Fake charity shops and fundraising campaigns have multiplied, particularly around popular causes, collecting donations that never reach the intended beneficiaries.
These scams are particularly cunning because they exploit our desire to help others during the season of giving.
5. Hijacked Seller Accounts
Sometimes the seller account is real, it’s just not being controlled by its legitimate owner anymore. Criminals are hijacking established seller accounts on major marketplaces, leveraging their positive reputation and transaction history to process fraudulent sales before the real owner even realises their account has been compromised.
How to Protect Yourself
The good news is that most scams can be avoided with a few simple checks before you click “buy.” Here’s what Pozin recommends:
Scrutinise the URL
Don’t just glance at it. Type the retailer’s address directly into your browser rather than clicking links. Look for HTTPS and the padlock icon. Be wary of slight misspellings or unusual domain extensions.
Test the contact details
Genuine retailers provide working phone numbers and physical addresses. Try calling them before you buy. If nobody answers, that’s a red flag.
Research independently
Don’t rely on testimonials on the seller’s own website. Search for the company name alongside words like “scam” or “fraud.” Check independent review sites and see what other customers are saying.
Question unbelievable deals
If a retailer is offering 7080% off highdemand items during peak shopping season, ask yourself why. Genuine retailers rarely need to slash prices dramatically when demand is high.
Pay safely
Credit cards purchases over a certain amount and payments made through PayPal often offer fraud protection. Bank transfers, cryptocurrency, and gift cards don’t. Never pay using methods that can’t be reversed.
Check the domain age
Websites created just weeks before Christmas specifically for holiday shopping should raise immediate suspicions. Use WHOIS lookup tools to see when a domain was registered. https://who.is/
Verify business credentials
Legitimate UK retailers display Companies House registration numbers and VAT numbers. Check these details independently rather than trusting what’s on their website.
If the Worst Happens
Fallen for a scam? Act quickly. Contact your bank or credit card provider immediately to report the fraud and potentially stop the payment. Report the incident to Action Fraud at actionfraud.police.uk or call 0300 123 2040.
Document everything, save emails, receipts, screenshots, and all communications with the seller. If you created an account on the fraudulent site, change your password on any other sites where you use the same credentials. Then alert others by reporting fake websites and social media accounts to the platforms.
The TwoMinute Rule
Online shopping experts emphasise one simple principle: take two minutes to verify a seller’s legitimacy before purchasing. Those 120 seconds could save you hundreds or thousands of pounds, plus the considerable stress and disruption of dealing with fraud during what should be the most joyful time of year.
