UK consumers could lose over £2,800 per minute to fraud during this year’s Black Friday weekend, new analysis shows
- Forecasting by fintech BR-DGE reveals that fraud could be on track to steal £2,829 per minute from UK consumers during the Black Friday weekend based upon previous fraud levels
- Further data shows that online searches for “fraud help” have increased by 12% so far this month compared to October 2023
- UK consumers are being warned to take extra caution if pushed into fast purchases at online checkouts over the weekend
“UK retailers have been quick out of the starting gate this past week to announce Black Friday discounts and deals, particularly as consumers look to reduce the overall costs of their Christmas spending. While shoppers look to secure big savings from this year’s largest retail event, they need to be mindful of running too hard and fast towards purchases that are actually disguises for fraud.
“Our analysis shows that if the impact fraudsters had last year is replicated again, there could be a significant increase in the amount of money shoppers lose from fraud. Whether it’s through stealing card details or selling goods that never arrive or exist in the first place, this period is a lucrative opportunity for fraudsters.
“While this data serves as a cautionary note for consumers to take extra care at the online checkout and carry out due diligence on sellers before handing over their money or banking details, it’s also a stark reminder for retailers and financial services companies. Both industries need to work together to get their houses in order when it comes to protecting consumers from online shopping fraud. The industries continue to grapple with a myriad of challenges, including the negative impact of social media, persistent card-based fraud and a lack of awareness around fraud prevention.
“Recent initiatives from the payments industry have led to positive results, but there is a complex road ahead to counter fraud. Biometric authentication at the checkout through the likes of Open Banking should support a reduction in fraud in the coming years, but new technologies, such as network tokenisation, are also key to clamping down on data fraud and mass data breaches. Adopting an end-to-end fraud strategy that leverages the best fraud mitigation tools and payment solutions on the market is vital to protecting customers and delivering great encryption during high sales periods. Ultimately, the industry needs to continuously innovate to move quicker than constantly adapting criminals, but this needs to be alongside greater adoption of new technologies across the payment lifecycle.”
Notes to editors:
1 BR-DGE analysis of UK Finance Fraud Data for 2022 (link here), Voucher Codes forecasting (link here), and research from Barclays Bank (link here). The analysis reflects a standard uplift in fraud of 22% during the Black Friday weekend period which the payment industry sees during the annual retail event.
2 Google Trends data of UK online searches for “fraud help” so far in November (1st to 18th November 2023) compared with October 2023 (link here).