Fraud Intelligence
Purchase Scams
Purchase scams are the most common type of authorised push payment fraud by volume. Fake adverts on Facebook Marketplace, Instagram, and even Google Shopping result in goods that never arrive or arrive counterfeit.
The Mechanics
How scammers exploit online marketplaces
Purchase fraud relies on bypassing platform buyer protections. Understanding their methodology is the first step to building a legal case for recovery.
The Lure
Fraudsters list highly desirable items, such as electronics, designer goods, or pets, at prices significantly below market value to trigger impulse buying.
The Diversion
The seller pressures the buyer to move the conversation off-platform to WhatsApp or email, then demands payment via direct bank transfer to avoid platform fees and protections.
The Ghost
Once the funds clear, the seller either vanishes completely, blocks the buyer, or provides a fake tracking number that never updates.
Scam Variants
Common types of purchase fraud
While the underlying goal is always financial theft, scammers adapt their storefronts to target different platforms and buyer habits.
Marketplace & Classifieds
Fraudsters on Facebook, Gumtree, or Craigslist offering cars, tickets, or electronics and demanding direct bank transfers.
Social Media Storefronts
Fake boutiques on Instagram or TikTok selling counterfeit luxury goods or taking payments for items they never intend to ship.
Fake Retail Websites
Clone websites mimicking legitimate brands, offering massive discounts to harvest card details or direct bank transfers.
Pet & Ticket Scams
High-demand, emotional items like puppies or concert tickets, where buyers are rushed into paying deposits before viewing.
Our Approach
Our Recovery Process
Document
We capture the listing, communications, and payment evidence before the seller deletes their accounts.
Assess
We identify the bank's Confirmation of Payee and fraud-pattern failures that allowed the transfer to proceed.
Pursue
We file PSR mandatory reimbursement claims and escalate to the Financial Ombudsman Service if required.
Recover
We secure refunds from your bank and pursue receiving banks for their due diligence failures.
Legal Authority
We leverage UK financial regulations
Even when the seller is anonymous, the banking system's safeguards and regulatory frameworks remain your strongest tool for recovery. We hold institutions accountable.
PSR Mandatory Reimbursement
Under the new Payment Systems Regulator mandate, banks must reimburse victims of authorised push payment fraud, including purchase scams, up to £85,000 per claim.
Card Chargebacks & Section 75
For card payments, we file formal chargeback requests or invoke Section 75 of the Consumer Credit Act to hold your card issuer jointly liable for the goods not being delivered.
Financial Ombudsman Service (FOS)
If your bank unfairly rejects your claim, we escalate the dispute to the FOS, which has the statutory power to force the bank to reimburse you.
How Purchase Scams Work
Fraudsters list desirable items, such as game consoles, designer goods, vehicles, and pets, at attractive prices. After payment by bank transfer, the seller disappears. Variants include sending an empty or counterfeit item, sending a worthless tracking number, or running long-running marketplace stores that take many small orders before vanishing.
Routes To Recovery
Card payments are usually recoverable through chargeback. Bank transfers are now covered by PSR mandatory reimbursement up to £85,000 per claim. Where the receiving bank failed to act on red flags, additional liability arises. We handle the full claim process for you.
£4,500 Recovered from Fake Instagram Boutique
Our client purchased luxury furniture from an Instagram seller after being directed to pay via direct bank transfer. The item never arrived, and the seller blocked them. We gathered the chat logs and bank transfer receipts, then filed a PSR claim against the receiving bank. Because the bank failed to flag the account as high-risk for fraud and ignored Confirmation of Payee mismatches, the Ombudsman forced a full reimbursement.
Paid for goods that never arrived?
Speak with our specialists today for a free, confidential consultation.
Common Questions
Frequently Asked Questions
Yes. PSR mandatory reimbursement covers most blameless purchase scam victims since October 2024, provided you did not act with gross negligence.
Yes. We handle low-value claims efficiently through our streamlined regulatory complaint process, ensuring you are not out of pocket for smaller frauds.
Do not engage further. Preserve the messages and contact us. The bank claim does not depend on the seller's cooperation, and further engagement can sometimes compromise the evidence.
Take Action Today
Affected by a purchase scam?
Our team of expert fraud lawyers can help you recover your lost funds and hold the banks accountable.