Protect yourself against bogus sellers

Citizens Advice’s Scams Awareness campaign runs again from July 3 - July 9. The annual campaign aims to give people skills to identify scams, encourage people to share their experience, and help people gain the confidence to report scams. The July campaign is focused on bogus selling, and what to do if you’ve been scammed by a bogus seller.

How can I tell if a seller is a bogus seller?

It’s important to know that scammers can be very good at what they do, and everyone can fall for a scam so you should not be embarrassed or ashamed about it if you do. However, you can minimise your chances of falling for scams by knowing what to look out for. 

Something may be a scam if the deal is too good to be true. You should read reviews for the product and the seller to see if anyone else has had issues with the seller.  If you’re buying from a website you haven’t used before, it’s a good idea to spend a few minutes researching it. You should look up the company’s terms and conditions and its address, which is normally found in the website’s ‘contact us’ section - this should have a street name, not just a post office box. If it’s a registered UK company you can check its details on the Companies House website.

Scammers will also often ask you to pay in an unusual way, or very quickly. For example, you’ve been asked to send money through a transfer service like MoneyGram or Western Union or pay via vouchers (e.g. iTunes gift cards). Remember to never give away your personal information like a password or PIN and never click on or download anything you don’t trust.

You can find more information on recognising scams on the Citizens Advice website.

What to do if you’ve been scammed by a bogus seller

If you’ve already parted with your money, the first step is to contact your bank immediately to let them know you think you’ve been scammed. In terms of getting your money back, a lot depends on how you paid. We have full details on our website on the routes you can take. For example, if you paid by debit card, your card provider can ask the seller’s bank to refund the money. This is known as the ‘chargeback scheme’. If you paid by credit card and the item cost more than £100 but less than £30,000 you might be able to claim under the Consumer Credit Act. This is known as a ‘Section 75 claim’. Under £100 on credit card you can’t use Section 75, but you can use chargeback.

What to do if you’ve been scammed by a bogus seller

Bogus sellers can scam people in various places online. Commons ones include online marketplaces and trading sites, such as Facebook marketplaces, Etsy, and eBay. Bogus sellers can also use fake websites and social media based stores like Instagram shop and TikTok shop, so you should always be wary of who you’re buying off.

Cryptocurrency

A common scam we are beginning to see is the bogus selling of Cryptocurrency which is being bought from social media ads. Scammers can take money from people who have followed these ads and bought cryptocurrency, or they may use financial details they obtained to take out loans in other people’s names. 

“The company told the client they'd make a small transfer to check they had her bank details right. £10,000 was transferred to the client's bank account, and then they told her there'd been a 'mistake' and asked her to transfer the money back to them. What had actually happened was they used her details to take out a loan, paid into her account, and she then gave them this money.”

You should avoid cryptocurrency ads that make promises of ‘getting rich quick’ and ‘zero risks’; as with any investment there are always risks. Always do your due diligence if you are looking to buy cryptocurrency and be aware of the source of the investment opportunity. Cryptocurrency is a largely unregulated market in the UK, so you should always be wary and proceed with caution. You can get more information on cryptocurrency from the Financial Conduct Authority website, and from Which.co.uk. 

No matter what your issue is, we are here to help ease your stress and help your situation. Contact us today by filling out our Debt Referral Form, attend our in-person drop-in, or visit our website to find out other ways to get in contact with us.