Black Friday & Christmas Online Fraud Arrests: When Buyers & Sellers Are Accused

When Festive Shopping Disputes Become Online Fraud Allegations

Black Friday and Christmas bring a sharp increase in online purchases, deliveries and returns. With more transactions taking place, disputes over missing parcels, refunds and payments are also more likely.

Most of these problems are civil matters that can be resolved through the retailer, shopping platform, card provider or courts.

A dispute may become a criminal investigation where there is evidence that someone deliberately misled another person for financial gain.

The difference between a dispute and an online fraud allegation

A civil dispute usually concerns a disagreement about payment, delivery or contractual obligations.

For example, a seller who cannot fulfil an order because a courier loses the parcel may face a refund claim, but that does not automatically make them guilty of fraud.

Criminal fraud involves dishonest conduct and the intention to make a gain or cause a loss or risk of loss.

The fact that someone has lost money is not enough, on its own, to establish a criminal offence.

What the Fraud Act 2006 requires

The Fraud Act 2006 covers fraud by false representation, failing to disclose information where there is a legal duty to do so, and abuse of position.

Online shopping allegations commonly involve fraud by false representation.

For this offence, the prosecution must prove that someone:

• Made a false or misleading representation.
• Knew the representation was, or might be, false or misleading.
• Acted dishonestly.
• Intended to make a gain or cause a loss or risk of loss.

A person does not need to have obtained money or successfully deceived someone for the offence to be committed.

However, an honest mistake about a product, payment or delivery does not automatically satisfy these requirements.

When Buyers Are Accused: Refunds, Returns and Chargebacks

Buyers may face allegations where a retailer or payment provider believes a refund or chargeback claim was dishonest.

However, requesting a refund for goods that did not arrive or were not as described is not, by itself, fraudulent.

Legitimate refund and return requests

Consumers have legal rights concerning faulty, misdescribed or undelivered goods.

Many online purchases also carry cancellation rights, subject to the applicable conditions and exceptions.

A chargeback through a bank or card provider can be a legitimate way to dispute a transaction.

The important question is whether the buyer’s account of what happened was truthful.

When a refund or chargeback may attract online fraud scrutiny

A buyer may face investigation if they knowingly make a false claim to recover money.

For example, someone who receives an item but tells their bank it was never delivered to obtain a refund may face an allegation of fraud by false representation.

Repeated disputed transactions across several retailers may also attract attention, although a pattern of chargebacks does not automatically prove dishonesty.

Investigators may review delivery confirmations, bank records, refund requests and messages exchanged with the seller.

These records can help establish whether the claim was genuine or knowingly misleading.

What investigators look at in online fraud cases involving buyers

If a buyer’s conduct is investigated for online fraud, the records most likely to be reviewed include transaction records showing delivery confirmation or courier tracking, all messages exchanged, the buyer’s account history, and records from the bank or card issuer showing the timeline of the chargeback claim.

Photographs of items received, whether shared with the seller or kept privately, may also be relevant.

When Sellers Are Accused: Listings, Payments and Deliveries

Sellers can face fraud allegations where customers claim they were deliberately misled about goods, prices or delivery.

However, an inaccurate listing or failed delivery does not automatically mean criminal fraud occurred.

Misleading listings and online fraud liability

An honest mistake in a product description is different from knowingly providing false information.

For example, a seller who accidentally lists the wrong product specification may face a customer complaint without necessarily committing fraud.

The position is different if the seller knows an item is counterfeit but advertises it as genuine.

Investigators will consider what the seller knew when creating the listing and whether the information was deliberately misleading.

Photographs, descriptions and product categories may all form part of that assessment.

Payment and non-delivery online fraud allegations

Taking payment for goods the seller does not intend to deliver is a recognised pattern of online fraud by false representation. 

The implied representation in accepting payment is that the seller intends and can supply the goods. Where that representation is false at the time of the transaction, criminal liability may follow even if the seller later attempts a refund.

Delivery failures caused by genuine courier errors, stock shortfalls or address problems are not online fraud. 

The legal distinction turns on the seller’s intent at the time payment was taken, not on whether delivery ultimately occurred. 

A seller who genuinely intended to deliver but could not do so because of circumstances beyond their control is in a materially different position from one who accepted payment knowing they could not or would not deliver.

A Civil Dispute or a Criminal Online Fraud Allegation?

Civil disputes and criminal fraud investigations follow different legal processes.

A civil dispute may involve a refund request, chargeback, compensation claim or disagreement over contractual obligations.

A criminal investigation involves allegations that someone acted dishonestly with the intention required by the Fraud Act 2006.

The same transaction can lead to both civil and criminal proceedings.

For example, a buyer may seek a refund through a shopping platform while police investigate allegations that the seller deliberately misrepresented the goods.

Warning signs that a dispute has become an online fraud matter

Police contact is the clearest indication that a dispute may have become a criminal matter.

This could involve a request for a voluntary interview, an arrest or enquiries about particular transactions.

A platform complaint or account suspension does not necessarily mean police are investigating.

However, if you become aware that a criminal allegation has been made, obtain legal advice before providing further detailed explanations.

What to Do if the Police Contact You About Online Fraud

If police contact you about suspected online shopping fraud, seek legal advice before answering substantive questions.

This applies whether you receive a telephone call, letter or request to attend a voluntary interview.

A voluntary interview under caution is a formal part of an investigation. Anything you say may be used as evidence.

You are not obliged to attend a voluntary interview simply because one has been requested, but refusing may affect how police proceed. A solicitor can advise you on the appropriate response.

If you are arrested, ask for legal advice before an interview.

Do not delete accounts, messages, listings or transaction records once you become aware of an investigation.

You should also avoid contacting buyers, sellers or other people involved to influence their accounts of what happened.

A solicitor can review the allegation, advise on the interview and help identify evidence that supports your position.

Evidence to Preserve When Facing an Online Fraud Allegation

Transaction records can be important in establishing whether an online shopping dispute involved fraud or a genuine misunderstanding.

Records buyers should preserve

Buyers should retain:

• Order confirmations and payment receipts.
• Delivery notifications and courier tracking records.
• Messages exchanged with the seller.
• Photographs of goods received, including packaging.
• Refund requests, chargeback records and bank correspondence.

For example, messages reporting a missing parcel before a refund request may help explain the buyer’s actions.

Records sellers should preserve

Sellers should keep:

• Original product listings and any subsequent changes.
• Order confirmations and payment records.
• Dispatch documents and delivery tracking.
• Communications with customers.
• Records of refunds, cancellations and returns.

These documents may help establish what the seller knew, when goods were dispatched and how customer complaints were handled.

Preserve existing records rather than altering or removing them. A solicitor can advise on obtaining additional information from platforms or payment providers.

Penalties and Sentencing for Online Fraud

Fraud by false representation under the Fraud Act 2006 carries a maximum sentence of ten years’ imprisonment in the Crown Court.

Obtaining services dishonestly is a separate offence carrying a maximum of five years’ imprisonment.

These are statutory maximums rather than the likely sentence in every case.

Courts consider the seriousness of the conduct, financial loss, number of people affected and the offender’s level of responsibility.

For example, an organised scheme involving multiple victims and substantial losses will generally be treated more seriously than an isolated, low-value offence.

How a Solicitor Can Help With an Online Fraud Allegation

A fraud defence solicitor can assess whether the allegations involve criminal conduct or a civil disagreement.

They can review the relevant transactions, customer messages, payment records and other evidence to establish what happened.

For buyers, this may involve showing that a refund or chargeback claim was genuine.

For sellers, it may involve evidence that the goods were accurately described, dispatched as agreed or affected by circumstances outside their control.

A solicitor can also advise before a police interview, communicate with investigators and prepare a defence if charges follow.

Ashmans Solicitors can advise buyers and sellers facing online fraud allegations, including disputes arising during Black Friday and Christmas shopping.

Speak to our Fraud and Cybercrime solicitors for advice about your position and next steps.