Lloyds Bank warns Brits losing £570 due to scams on Facebook Marketplace and Instagram

Lloyds Bank has issued a warning to all social media users as new data reveals that an increasing number of people are losing approximately £570 on average as a result of online scams.

As reported by Liverpool Echo, the Bank’s data reveals that Facebook and Instagram purchase scams are anticipated to cost Brits over £27m just in 2023.

Shopping scams on Facebook Marketplace and Instagram

According to the new research by Lloyds Banking Group, over two-thirds (68%) of all purchase scams now begin on Facebook, including Facebook Marketplace and Instagram.

The latest data reveals one person in the UK becomes a victim to a scam on either of these two platforms every seven minutes.

Lloyds said that the rise is a result of an increase in online shopping and thus scammers, with people buying goods that don't exist.

The Bank explained one popular scam that involves victims being enticed to purchase discount or exclusive items. The fraudsters request victims pay for the item via bank transfer, which doesn’t provide much consumer protection if there’s a problem.

Read more ⋙ Facebook Marketplace: Police warn millions of this new scam that is on the rise

Bank says tech companies 'must share responsibility'

Liz Ziegler, Lloyds' fraud prevention director, told Liverpool Echo:

Social media has become the Wild West of online shopping in recent years, with very few checks in place to verify who is selling what. This has left consumers increasingly exposed to ruthless fraudsters, with hundreds of new victims targeted every day and tens of millions of pounds flowing to organised crime gangs each year.

Banks have been at the forefront of tackling the epidemic of scams, but they cannot fight it alone. It’s high time tech companies stepped up to share responsibility for protecting their own customers. This means stopping scams at source and contributing to refunds when their platforms are used to defraud innocent victims.

Read more:

⋙ Facebook Marketplace warning: There's a new costly scam you should be aware of

⋙ New travel scam that steals holidaymaker's money on the rise: Here's how you can stay safe

Meta defends itself

A spokesperson for Meta, which owns both Facebook and Instagram, seemingly defended the company by saying:

This is an industry-wide issue and scammers are using increasingly sophisticated methods to defraud people in a range of ways including email, SMS and offline.

We don’t want anyone to fall victim to these criminals which is why our platforms have systems to block scams, financial services advertisers now have to be FCA authorised and we run consumer awareness campaigns on how to spot fraudulent behaviour.

People can also report this content in a few simple clicks and we work with the police to support their investigations.

Sources used:

Liverpool Echo: 'UK bank hits all customers with £570 warning'

Express: 'UK bank issues all customers with £570 scam warning'