Tips to help prevent fraud when paying on a phone

With the growing popularity of online shopping, people can browse and purchase products with just a few taps. But as the digital marketplace expands, so does the risk of fraud.

This article includes tips, suggestions and general information. We recommend that you always do your own research and consider getting independent tax, financial and legal advice before making any important decision.

In 2022, nearly 90% of adult internet users in the UK encountered digital content which they believed to be a scam — that’s approximately 43 million people.¹

Learn the potential signs of fraud and scams, plus fraud prevention strategies that may help.

Know the potential signs of fraud and scams

Looking to check fraud? Here are some potential signs of fraud and online phone shopping scams:

• Unusually low prices or deals that seem too good to be true.
• Limited or no customer reviews or feedback available for the seller or product.
• Lack of secure connection (e.g., no “https://” at the beginning of the URL or a padlock icon in the browser address bar).
• No or vague return policies.
• Lack of mobile payment security and trusted payment methods.
• Poor website design, spelling errors, or grammatical mistakes.
• Requests for advanced payment or wire transfers instead of trusted payment methods.
• Phishing attempts through emails or messages asking for personal information or login credentials.
• Unexpected charges or additional fees during the checkout process.
• Lack of clear contact information, such as a physical address or customer support details.

Know the different types of potential online shopping scams

When it comes to how to avoid online shopping scams, start by understanding the different types of potential scams. Here are some examples:²

• Auction fraud: Discovering issues with purchases or sales on online auction or marketplace platforms.
• Shopping or purchase fraud: Involves fraudulent schemes aimed at obtaining personal information, financial details, or goods from unsuspecting consumers.
• Holiday fraud: Refers to deceptive practices targeting individuals who book vacations or travel arrangements online, such as offering non-existent holidays, fake travel packages, or misleading information about accommodations, flights, or activities.
• Ticket scams: When someone buys tickets online, but they don’t arrive or turn out to be fake.
• Counterfeit goods fraud: When a product is fake but sold as authentic. This can also include fake gift certificates.
• Pharming: This involves redirecting website traffic from legitimate websites to fraudulent ones, often without the user’s knowledge or consent.

Potential tips to avoid fraud and scams when paying on a phone

Looking for strategies on how to avoid scams or how to avoid fraud? Here are some ways to potentially avoid fraud and scams when making payments online or on a phone:³

• Shop from reputable websites and online retailers. Look for websites that have secure payment systems and a track record of positive customer reviews.
• Research the seller. If purchasing from a third-party seller or an unfamiliar website, research their reputation. Read reviews and ratings from other customers, check their contact information, and look for a physical address and phone number.
• Verify the website's security. Before entering any personal or financial information, ensure that the website is secure. Look for "https://" at the beginning of the URL and a padlock icon in the browser's address bar.
• Be cautious with deals that seem too good to be true. If the price of a product is significantly lower than the average market price, it could be a red flag. Be sceptical of deals that seem too good to be true, as they may be attempts to lure unsuspecting individuals.
• Use secure payment methods. When making online purchases, use secure payment methods like credit cards or trusted third-party payment services.
• Avoid sharing unnecessary personal information during the checkout process. Retailers typically require shipping details and payment information, but be cautious if they ask for excessive personal data.
• Check the return policy. Review the seller's return policy before making a purchase. Legitimate sellers usually have clear and reasonable return policies, whereas scam websites may have vague or non-existent return policies.
• Regularly review financial statements for any unauthorised charges or suspicious activity. Report any discrepancies immediately.

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