Bogus refund claims are among the challenges faced by retailers while shoppers are being urged to watch out for fake adverts and websites.
Black Friday is perceived by UK retailers as the worst period for increased fraud activity, a survey indicates.
Nearly two-fifths (37%) of senior leaders, in the sector surveyed, identified the Black Friday weekend, which stretches through to Cyber Monday, as the period they are particularly likely to see a rise in attempted or successful fraudulent transactions, research for financial technology provider payabl found.
Black Friday 2025 falls on November 28, with Cyber Monday on December 1. Many retailers have already launched sales as the shopping bonanza gets underway.
The weekend was ranked in the survey above other peak retail periods such as the summer holidays (33%), the January sales (30%) and Boxing Day (24%).
A third (33%) of those surveyed said the speed at which scams develop is their biggest concern, while others struggle to balance smooth checkout experiences (31%) and effective security measures (29%).
Some 76% of retailers surveyed are planning to invest more in fraud-prevention technology over the next year.
The survey of 200 UK merchants serving customers in the UK and Europe was carried out by Opinium Research in September and highlighted common frauds seen by retailers over the past 12 months.
The included fraudulent returns, where criminals seek refunds for goods they never purchased; fraudsters using stolen payment details to make purchases; and chargeback fraud, where buyers falsely dispute legitimate transactions but keep the goods.
Ugne Buraciene, group chief executive of payabl, which recently published a guide to help businesses prepare for increased demand, said: “Black Friday’s promise of a bargain can unfortunately create the perfect scenario for fraudsters to exploit, with retailers and shoppers alike paying the price.
“For retailers, the surge in both buyers and transactions can pile on the pressure to keep up with demand to provide a seamless, shopping experience while ensuring they still identify and keep customers safe from fraud. At the same time, shoppers need to stay vigilant against those who look to exploit them with offers that may simply be too good to be true.
“As fraudsters’ methods grow more sophisticated, a single incident can not only impact a retailer’s revenue but also damage customer trust – something far harder to build back. This is why investing in smarter, more adaptive fraud prevention is so critical.”
While retailers will be watching out for shopping scams, shoppers will also need to be on their guard, with criminals often posing as legitimate retailers to trick people looking for a deal.
Fraudsters may set up fake websites purporting to be those belonging to well-known brands or offer goods that are fake or do not exist on online marketplaces.
A survey for Barclays found half (50%) of people are more worried about falling victim to a scam than they were 12 months ago.
And 75% of people surveyed believe AI (artificial intelligence) has made online scams appear more convincing, while just 36% feel confident they could spot an AI-generated scam, according to the Barclays survey, carried out by Opinium in November among 2,000 people across the UK.
And research for insights company TransUnion found more than three-quarters (78%) of shoppers are worried about scams this Black Friday, and one in eight (13%) said they struggle to separate genuine deals from scams.
The average loss among people who said they had been scammed previously was about £500.
Among those who had been scammed during Black Friday sales, 39% of people said they acted too quickly out of fear of missing out on a “good deal”, while 31% prioritised saving money over avoiding fraud, according to the survey of 2,000 people across the UK in October for TransUnion, carried out by OnePoll.
To avoid purchase scams, the Take Five To Stop Fraud campaign, led by UK Finance, urges people to research sellers and read reviews, be wary of clicking on links, use the secure payment methods recommended by reputable online retailers and online marketplaces and to suspect any offers that appear too good to be true.
People who suspect they may have been scammed should tell their bank and the police.
According to UK Finance’s figures, purchase scams continued to be the most common type of APP (authorised push payment fraud) in the first half of the year, accounting for 72% of APP cases.
Giles Mason, Take Five To Stop Fraud spokesperson, said: “Criminals are using fake ads and websites to sell items that don’t exist and steal your money, especially during this time of the year where they will take advantage of anyone looking for Black Friday offers.
“It’s important to take extra care online and check sellers thoroughly before buying. Make sure you follow the Take Five To Stop Fraud advice: stop, challenge, protect.”
The advice of the Take Five campaign is:
– Stop: Take a moment to stop and think before parting with your money or information. It could keep you safe.
– Challenge: Ask yourself, could it be fake? It is OK to reject, refuse or ignore any requests. Only criminals will try to rush or panic you.
– Protect: Contact your bank immediately if you think you have been scammed and report it to Action Fraud.
