Black Friday may turn into ‘Fraud Day’ as scammers ramp up tactics

By Gloria Methri

As Black Friday approaches, the festive shopping season brings not just exciting deals but also a dramatic rise in online fraud attempts. A new report from Featurespace reveals that nearly 46% of UK consumers notice an increase in scam activity during peak shopping periods, such as Black Friday and Christmas.

Fraudsters Exploit Shopping Frenzy

Online shopping around Black Friday is big business, with UK shoppers spending nearly £10 billion during the run-up to the event last year—a 4.7% increase from 2022. But this retail boom is a goldmine for fraudsters. Over the past 12 months, more than half (55%) of UK adults reported seeing an increase in scam attempts, and a troubling 30% have fallen victim to financial fraud.

According to UK Finance, fraud cost UK consumers over £570 million in the first half of 2024. With fraud now accounting for 40% of all recorded crimes in England and Wales, experts are warning consumers to stay vigilant when shopping online.

“Fraudsters choose busy shopping moments such as Black Friday or the run-up to Christmas when consumer spending peaks to target unsuspecting victims,” says Dave Excell, Founder of Featurespace.

During these high-pressure shopping periods, fraudsters entice victims with fake websites, counterfeit goods, or too-good-to-be-true offers on high-demand products such as tech gadgets and gift cards.

To combat this, Featurespace has collaborated with banks like NatWest, employing advanced AI-powered systems to identify and block scams in real-time.

NatWest and Amazon Issue Warnings

NatWest has introduced a “Scamvent” calendar to educate the public on 12 common purchase fraud tactics. The calendar highlights scams such as counterfeit websites and fake deals that often circulate on social media during shopping frenzies. According to the bank, a staggering 92% of purchase scams originate online.

Meanwhile, Amazon has issued a warning, urging shoppers to scrutinise emails and links. Phishing scams mimicking delivery notifications are expected to rise. Consumers are advised to verify any suspicious communications and rely on trusted payment methods for purchases.​

With social e-commerce growing exponentially, platforms like Instagram and TikTok are becoming hotbeds for fraudulent activity. Research from TikTok and Retail Economics reveals that 56% of UK users have made purchases directly via social platforms. While this has transformed how we shop, it has also increased fraud risks.

Featurespace’s report shows that 80% of shoppers are now more cautious about fraud on social media, with 82% urging these platforms to strengthen safeguards against scams.

Experts stress that consumers can protect themselves by avoiding impulsive clicks, scrutinising deals, and verifying seller authenticity. Banks, platforms, and institutions are ramping up efforts, but shoppers must remain cautious to prevent Black Friday from turning into “Fraud Day.”

With online spending expected to exceed £10 billion this holiday season, staying informed is the best defence against financial scams.​