Customer fraud is rising – what you need to know

Customer fraud has shot up in England and Wales. According to the Office of National Statistics (ONS), there were around 3.6 million incidents of customer and retail fraud by June 2024. 

That’s a 19% increase from last year. 

Out of these incidents, about 2.7 million involved losing money or property, but only 1.9 million of those cases resulted in people getting their money back. 

Chad Reimers, the general manager of fraud and ID at credit reference agency TransUnion, explains that fraudsters are now focusing on retail and online shopping.  

They often use methods like chargebacks, delivery fraud, and scams related to mobile phone deliveries. These tactics can affect you if you use financial services, as they may involve scams where your account is misused, or payments are pushed without your permission.  

It’s important for organisations to create safer ways for people to shop, so they can spot fraud risks while building their trust, says Reimers.  

What is customer fraud? 

Customer fraud is when someone tricks you into losing money or property during what you think is a genuine business deal.  

You might believe you’re making a valid purchase, but you’re being scammed.  

This type of fraud often involves false promises or misleading claims aimed at taking your money. 

What is retail fraud?  

As more people shop online, retail fraud is becoming a bigger issue for stores.  

Retail fraud happens when criminals steal products, change prices, or make fake returns to cheat stores for their own gain. 

Tips on detecting scams and fraud  

It’s natural to worry about fraud and scams, but staying informed about the latest tricks can help you avoid falling victim.  

Here are some warning signs that someone might be trying to scam you: 

• They claim to be from a bank, government, or even a family member, asking you to pay money. 

• They ask you to pay upfront to claim a prize or gift. 

• They ask you to wire money, send cryptocurrency, or put money on a prepaid card and send it to them. 

• They want access to your bank accounts, credit cards, or investment accounts. 

• They pressure you to act quickly, claiming a deal is time-sensitive or that you’ll miss out. 

• They create a sense of urgency or emergency to manipulate your emotions. 

Tips to protect yourself from scams 

There are a number of steps you can take to help protect yourself from customer fraud: 

• don’t share your account numbers, passwords, or national insurance number 

• take your time to compare prices before making a purchase 

• if it sounds too good to be true, it probably is 

• be cautious of deals that pressure you to act quickly 

• stay alert if someone is trying to play on your emotions 

• avoid clicking on links or scanning QR codes from unknown sources 

What to do if you’ve been scammed 

Getting scammed can be really stressful, both emotionally and financially. But it can happen to anyone, and there is help available.  

Here’s what you should do: 

• protect yourself from further risk. If you feel threatened at any point, contact the police immediately by calling 999 

• reset passwords 

• let your bank know your financial information might have been stolen 

• update your anti-virus software 

• contact your bank immediately if there’s a payment you don’t recognise 

• report the scam. All scams should also be reported to Action Fraud, the UK’s national reporting centre for fraud. You can also report the scam to Citizens Advice who pass all the information on to Trading Standards and they’ll decide whether to investigate or not 

 For more detailed advice on how to outsmart online scammers and what to do if you’ve been scammed, check out our guide.