The banking lobby group issued the warning as it reported a significant increase in romance fraud and purchase scams, reaching new highs last year. Despite a slight decline in overall financial losses to fraud—down 4% to £1.17bn in 2023—UK Finance emphasized that the misuse of online platforms continues to leave people vulnerable to scams. The organization urged tech companies to take more action to combat these fraudulent activities.
Consumers lost £86m last year to purchase scams, where payments were made for goods that never materialized. This represents a 28% increase from 2022, with over 156,000 cases reported. “Every year, we see a cycle of scams evolving,” said Ben Donaldson, managing director of economic crime at UK Finance. “This year, the most prominent examples are related to the Olympics and Taylor Swift.”
In April, Lloyds Bank disclosed that fans of Taylor Swift had lost a total of £1m in scam ticket sales ahead of her UK tour, set to begin in July. More than 600 of the bank’s customers reported falling victim to these scams. UK Finance noted that fraudsters often persuade victims to pay via bank transfer rather than using official websites.
“Tickets for major events like the Olympics, Euro 2024, Glastonbury, or Taylor Swift concerts sell out quickly, prompting people to seek alternatives online,” warned Andy Donald of UK Finance. “Criminals exploit this demand, offering fraudulent or non-existent tickets.”
The annual report from UK Finance highlighted some progress in the fight against fraud, which remains the most common crime in the UK and surged during the pandemic. The total number of fraud cases dropped 1% from 2022, totaling approximately 2.97 million, with payment card fraud comprising the majority.
Losses from unauthorized transactions fell 3% to £708.7m last year, attributed to improved customer verification practices. Additionally, losses from authorized payment scams declined 5% to £459.7m, particularly as cases involving criminals impersonating banks or police decreased significantly.
However, romance scams—where individuals are deceived into believing they are in a relationship—reached a record high last year. Losses in these cases rose 17% to £36m, with victims making an average of 10 payments per scam. This loss is double the amount reported for similar scams in 2020. “Fraud not only finances serious organized crime but also causes significant emotional harm to victims,” Donaldson stated.
New regulations set to take effect on October 7 this year will require UK payment service providers to reimburse customers who fall victim to payment fraud, with some exceptions. UK Finance stressed the urgency of addressing fraud ahead of these changes. “With new reimbursement rules imminent, the risk of more money falling into criminal hands increases unless the tech and telecom sectors take decisive action to prevent fraud on their platforms and networks,” Donaldson said.
How to Spot and Avoid a Scam:
- Research the Seller: Purchase tickets only from the venue, promoter (such as Live Nation), an official agent (like Ticketmaster), or a reputable ticket exchange site.
- Be Cautious with Search Engines: Unauthorized ticket resellers can buy top spots in search results through ads, making it easy to fall for scams.
- Look for the STAR Logo: This indicates the vendor is a member of the Society of Ticket Agents and Retailers, adhering to strict standards.
- Avoid Bank Transfers: Especially when dealing with unknown sellers. Using credit cards or payment services like PayPal offers better protection and a chance to recover your money.
- Beware of Too-Good-To-Be-True Deals: Unsolicited emails, texts, or ads offering unbelievable ticket deals are often scams.
Staying informed and cautious can help prevent falling victim to these pervasive scams.
