Lloyds Bank has set up a working group to combat the rise of fake websites which trick people into purchasing items which are never dispatched.

The bank estimates these fake websites have extracted an estimated £6.6 million from their victims so far.

The working group has been set up in partnership with chargeback management company Chargebacks911 and other payment platforms. It aims to report known fake websites when they arise and block transactions.

The working group is also calling for payment platforms to introduce tighter controls to make it more difficult for scammers to set up and take payments.

Lloyds estimates “tens of thousands” of credit and debit card customers have fallen victim to the scam, losing around £55 on average.

The bank said the scam has driven a 211 per cent increase in card payment disputes over the past 12 months.

To carry out the scam, criminals use social media to advertise fake websites which imitate popular brands and offer significant discounts, luring shoppers into making a purchase.

Those who purchase items from the fake websites are usually not sent the items they ordered, or they are sent something different which is worth less than what they ordered. Lloyds said one customer ordered Dior perfume but received a ring for a child instead.

Lloyds Bank said that according to its research, less than 30 per cent of people who purchased goods from known scam websites contacted their bank to dispute the charges.

“When we spot a bargain online, it can be tempting to snap it up, but it’s important to remain vigilant and know that rogue retailers use social media to promote significant discounts on goods they have no intention of delivering,” said Gavin Evans, senior manager for consumer cards at Lloyds Bank. “It’s also crucial to check the web address if you’re planning on making an online purchase, making sure it’s familiar and matches the brand you are trying to buy from – particularly if you opened the website by clicking on an advert or social media post.

“If you don’t recognise the web address, apply extra caution by checking online reviews of the website and consider buying from somewhere you trust instead.”

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