‘Phantom goods’ scams online

What’s the threat?

More people are being tricked online into buying goods that are never delivered, according to new figures from Citizens Advice. They show a 17 per cent rise in shoppers reporting being conned in the first three months of 2017.

In these ‘phantom goods’ scams, fraudsters advertise items at extremely cheap prices on sites like Facebook, Gumtree and ebay. The listings often include fake positive reviews to indicate that the seller can be trusted.

Scammers list a range of items, from physical goods like cameras and jewellery to services such as car insurance and driving lessons. On average shoppers lose £1,100. Citizens Advice gave one example of a woman who agreed a price of £5,000 with a person who had listed a houseboat on ebay. The seller emailed the victim a link to a fake Paypal site, where she made the payment. She hasn’t got her money back.

How can you stay safe?

Always research the person selling the item, particularly if the price seems too good to be true. Citizens Advice said that people are most likely to be scammed when buying cars, flights and furniture, so be especially cautious when shopping for these.

If you’re buying from an unknown company, check whether it belongs to a trade body, such as ATOL for holiday firms. Legitimate companies selling financial services should be on the Financial Services Register (search at https://register.fca.org.uk).

If a company is selling items on an online marketplace, such as Amazon and ebay, check that it has its own website. If so, type the URL into the Who.is search box ( https://who.is, see screenshot) to find out who it belongs to.

Citizens Advice also urged people to report fraudsters, through Action Fraud (0300 123 2040), to help the authorities take action against them.