Lloyds is set to roll out a new AI-powered tool called Scam Check, designed to protect customers from falling victim to online shopping fraud before any money leaves their account.
The feature will appear within certain payment journeys inside the Lloyds app and will activate when a customer attempts to pay someone new for an online purchase. Where the system suspects a potential scam, customers will be prompted to answer a short series of questions and submit screenshots of the item they intend to buy. The tool will then use artificial intelligence to evaluate the information and issue a warning if the transaction appears suspicious.
Among the red flags Scam Check is built to identify are prices that appear unrealistically low, sellers with new or unrated accounts, item descriptions that lack detail, requests for a deposit, and any language designed to pressure or rush the buyer.
The launch comes amid persistent levels of online shopping fraud. Of the fraud cases reported by Lloyds customers, approximately 68% involve shopping scams, with the majority originating on Meta-owned platforms including Facebook, Instagram and WhatsApp.
Lloyds says it prevented more than £1bn in attempted fraud in 2025, backed by a £100m investment in new fraud prevention technology. The bank currently checks an average of 23,551 transactions every minute for signs of unusual activity, with customers able to identify when this protection is active through the presence of the anti-fraud DarkHorse logo in the app.
Behind the scenes, Lloyds has also introduced AI-driven support tools for colleagues handling live customer calls, enabling faster reviews of transactions, identification of warning signs and real-time scam risk assessment. The bank says this will reduce response times and allow staff to dedicate more time to customer support.
Lloyds fraud prevention director Liz Ziegler said, “Scams are becoming more convincing, targeted and emotionally manipulative, making them harder to spot and we need to use all the tech and tools we can to fight back. Scam Check will be the newest way we address the enormous threat of online scams, designed to step in at the right moment, spot the warning signs earlier and support customers before money can leave their account. By continuing to combine cutting-edge technology, with the expert judgement of our colleagues, we’re helping customers stay one step ahead of scammers.”
Lord David Hanson, minister for fraud, said, “Fraudsters will stop at nothing to take your hard-earned money. I welcome Lloyds’ plans to introduce Scam Check and urge everyone to Stop! Think Fraud to protect themselves and those close to you. We’re investing £250m as part of our new Fraud Strategy to crackdown on this criminality. We will use every tool at our disposal to dismantle criminal networks, bring fraudsters to justice and strengthen protections for victims.”
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