Why you shouldn’t pay by bank transfer as scammers fleece online shoppers of their cash
SHOPPERS are being warned not to use bank transfers when they pay for things online as it's much harder to get their money back when something goes wrong.
The warning comes after four men who conned 100 victims out of almost £552,000 were jailed last week.
The scammers placed fake adverts for non-existent products and services online, and convinced their victims to pay them through bank transfers.
But if you pay by bank transfer and something goes wrong, you're not covered by the same protection offered to card and Paypal payments.
In March, figures showed that bank transfer fraud had more than doubled in the past year, yet victims were only getting back 20 per cent of what scammers had stolen from them.
At the end of May, a new scam code came into effect to better protect people from this type of fraud, but this is only voluntary so you're not guaranteed your money back.
How to protect yourself from fraudsters
ACTION Fraud recommends taking the following advice to stay safe:
- When making a purchase, be suspicious of any requests to pay by bank transfer or virtual currency instead of safer methods, such as credit card or payment services such as PayPal.
- Listen to your instincts: If something feels wrong then it is usually right to question it. Don’t pay for goods or services unless you know and trust the individual or business.
- Personal information obtained from data breaches is making it increasingly easier for fraudsters to create highly targeted phishing messages and calls - watch out for these.
- You shouldn’t assume the caller is genuine just because they’re able to provide some basic details about you.
- Always be suspicious of unsolicited requests for your personal or financial information.
Some banks also haven't signed up the code, and where a bank that has joined the scheme feels there was "gross negligence" on your part, it doesn't need to give your money back.
So to avoid getting stung, you should consider paying by card if you can when shopping online.
If you use your credit card to buy something costing at least £100, you’re covered by "section 75" of the Consumer Credit Act.
This means your credit card provider has equal responsibility with the seller if there’s a problem with the things you’ve bought or you don't receive them at all.
Just keep in mind that you'll need to submit your claim within six years from the date of purchase.
If you paid by debit card, you might also be able to get the money back through your card provider's "chargeback" scheme.
But unlike section 75, this is a voluntary scheme and not in law.
This means a credit card is usually safer, of course, but only use one if you're sure you can meet the minimum repayments each month.
The time limit to claim varies between providers so double-check whether any deadline applies to you.
With both schemes you need to write to your card provider explaining what happened and ask for a refund.
Or if you prefer using PayPal, the payment system provider offers buyer protection for 180 days after your purchase so you'll be reimbursed if things go wrong.
Official recommendations also ask shoppers to be mindful of using bank transfers to pay for things.
UK Finance, which represents the banking industry, said: "Always use the secure payment method recommended by reputable online retailers and auction websites.
"Be very wary of requests to pay by bank transfer."
If you think you've been scammed, you should contact your bank or card provider immediately - urgency is needed so your bank can try and trace the money and prevent any further attempts to steal your cash.
You should also notify crime reporting agency Action Fraud or by calling 0300 123 2040.
It's also worth keeping an eye on your credit report for suspicious transactions or credit requests as fraudsters may try their luck again.
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Last month, The Sun spoke to a disabled mum who lost £1,300 to crooks posing as Barclays' fraud team - and the bank refused to refund her.
In June, we also revealed how fraudsters who pretended to be from BT stole £18,000 from a 75-year-old professor.
While scammers recently conned a TSB customer out of £4,700 and the bank refused to refund him until The Sun stepped in.
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