…Just over a quarter of Londoners fear falling victim to online scams…
As the cost of living crisis continues to bite, new research from digital identity company Yoti (carried out by Censuswide) reveals that London-based shoppers are tightening their belts this festive season, with 79% turning to online marketplaces in search of affordable Christmas gifts on sites such as eBay (45%), Etsy (29%), Vinted (25%) and Facebook Marketplace (19%). However, while bargain-hunting gears up as the season takes hold, concerns over online scams are dampening the Christmas cheer for many.
Excitement meets anxiety over scams
Despite the festive thrill of scoring online marketplace bargains, just over a quarter (26%) of London shoppers remain nervous about falling victim to online scams. “Fewer than 1 in 3 respondents (32%) report feeling fully confident in the safety policies of these platforms,” commented Robin Tombs, CEO at Yoti. “It’s little wonder that scam fears are prevalent. Our findings indicate that 37% of those surveyed have been directly scammed themselves or know a family member or friend who has been defrauded when buying from second hand platforms. This is typically even higher for younger shoppers, rising to 56% for 16-24 year olds across the country.”
Interestingly, 72% of Londoners said they would consider using an app that verifies the identity details of buyers or sellers to boost their confidence when shopping via online marketplaces.
Generational divide
The survey revealed a notable generational divide in scam awareness and protective behaviours. Across the UK, 79% of 25-34 year olds routinely attempt to check the legitimacy of sellers before making a purchase, only 61% of those aged 55+ do the same. Younger consumers aged 16-24, also demonstrate greater familiarity with security and identity verification tools, with 73% being aware of these features, compared to just 32% of older shoppers. This increased caution among younger audiences may be driven by personal experience, given over half (55%) of 16-24 year olds have either been scammed themselves or know someone who has, prompting them to adopt more safety measures.
Tombs said: “There is a clear need to make shoppers more aware of the free identity checker tools available to them, especially as nearly half (49%) of all respondents admitted they were unaware of such technology.”
Establishing trust: how shoppers are protecting themselves
London shoppers are using a variety of fairly unreliable methods to determine whether sellers on online marketplaces are trustworthy – such as the 23% of respondents who simply look at the number of friends or contacts a seller has to gauge their legitimacy. Other methods being used include checking reviews and ratings (69%) and relying on the platform’s buyer protection policies (49%). Only 32% of Londoners are taking things a step further by directly contacting sellers to ask for proof of identity.
Buyer beware
Tombs concluded: “As Londoners turn to online marketplaces to ease the financial strain this Christmas, the excitement of finding a great deal is tempered by the very real risk of scams. Shoppers need to remain vigilant and use the safety tools available, such as Yoti’s peer to peer ID checker, to reduce the risk of fraud and build more trust online.”
Yoti’s top safety tips for shopping at online marketplaces:
- Talk to friends and family about available safety tools and help them to understand how to use them.
- Watch out for items priced lower than you’d expect to pay for them. Counterfeit or nonexistent items can be rife on marketplaces – if you’re suspicious at all, ask for proof of purchase.
- Carry out due diligence – check who you’re buying gifts from and ask for proof of ID (ideally with a photo). One way to do this is to ask them to swap details with a Digital ID such as Post Office EasyID, Yoti ID or Lloyds Bank Smart ID (all free to download). Don’t rely on looking at the number of friends/contacts they have, or interactions as these can easily be faked. Also check when the account was created, often newer ones are scammers.
- Don’t feel rushed into buying something – pressure tactics are a staple in the scammer toolkit. Always verify they’re genuine.
- Watch out for payment scams and don’t send money to an anonymous account. Consider using a payment method like PayPal Goods and Services, that can help protect you from fraud – though don’t use the ‘friends/family’ payment option as this is not protected.
- For further advice on how to stay safe online, see the Stop! Think Fraud campaign.
Featured Photo by Nathan Lemon on Unsplash.