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Gloucestershire Business News

Warning: Don’t be conned into buying ‘phantom goods’

More and more people are being caught out by 'phantom goods' scams costing them an average of £1,100, Citizens Advice says.

Beware as many shoppers and businesses are conned into buying high value items like cars and flights, namely online, which turn out not to exist.

New figures reveal a 17% increase in people reporting 'phantom goods' to the Citizens Advice consumer service.

People were also more likely to lose money from 'phantom goods' than any other scam - ranging from fake doorstep sales to investment scams - with 96% losing money compared to 55% across all scam types.

The findings are being released ahead of Scams Awareness Month which starts tomorrow.

The campaign is led by Citizens Advice and Trading Standards and encourages people to report and talk about scams.

'Phantom goods' scams involve fraudsters advertising items at cut prices on social media sites like Facebook and Instagram, and online marketplaces such as Gumtree and EBay.

Scammers will also post fake customer reviews to give the impression they are a reputable trader.

The most common items for people to get scammed on were cars, flights and furniture.

One young man paid £2000 for car insurance he found on Instagram, with a seller who had comments of recommendation from other users.

He was told the paperwork would be emailed after he transferred the money, but realised it was a scam when the email never arrived.

It can be hard to get your money back when you pay with a bank transfer, but his bank was eventually able to claw back the money from the scammer's account.

Chief executive of citizen's advice Gillian Guy said: "With so many people shopping online to compare deals, scammers are using numerous tactics to target people with phantom goods.

"They are drawing people in with cut-price deals and then persuading people to buy items with phoney recommendations from customers."

"It's really important that people don't rush into buying an item when they spot a bargain, but take some time to make sure it's genuine first.

"Reporting scams also helps the authorities to take action against fraudsters and allows people to get advice on ways to try and get their money back."

The research is analysis of over 3,600 scams logged by the Citizens Advice consumer service between January and March 2017, compared with scams reported during the same time period in 2016.

Consumer minister Margot James said: "Scams like these can be devastating for those affected.

"That's why this government has been cracking down on these practices to make the internet a safe space for users.

"Last year National Trading Standards identified and suspended over 500 Twitter accounts and 140 websites linked to scams, leading to hundreds of arrests.

"I'm encouraged by Citizens Advice's continued efforts to raise awareness and protect consumers against this kind of crime."

555 cases of 'phantom goods' were recorded between January and March this year, compared to 475 cases over the same period in 2016 - a rise of 17%.

Top tips to avoid buying phantom goods:

• Research the trader - Don't rush into buying an item as soon as you spot a good deal. Take some time to do some research on the company or trader first by checking their protected by a trade body or they have registered address.

• Do a domain check - Type in the trader's web address to whois.com so you know they're genuine. Make sure their full address and contact details are listed.

• Look for the padlock - When buying online, look out for the padlock sign in the url bar on the payment page so you know the website is secure. The web address should also start with 'https://' and part of the wording may turn green too.

• Don't pay by bank transfer - Always use a credit card, debit card or PayPal to pay for items bought online and never pay by bank transfer. Bank transfers can be difficult to trace meaning you are very unlikely to get your money back.

When buying particular products:

• Financial products - Make sure the company is on the Financial Conduct Authority's register of approved businesses.

• Package holidays - Check the tour operator is ATOL protected.

• Used cars - Always have a look at the vehicle and paperwork in person first.

Getting advice and report scams:

• Get advice on an offer you've had, or find out how you can get your money back if you've been scammed, from the Citizens Advice consumer service: 03454 04 05 06

• Report scams or suspected scams to Action Fraud: 0300 123 2040 www.actionfraud.police.uk 

What do you think? Email: mark@moosemarketingandpr.co.uk 

Picture credit: Pixabay

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