Online marketplace scams: What to know.
Key takeaways:
- There are several frequent online marketplace scams that are popular with thieves. It’s important to know the red flags to watch for.
- Slow down and think about whether things make sense. If something seems off, it probably is.
- Know the places to make reports if you do become the victim of an online marketplace scam. Quick action could mean not only protecting your bank account but also preventing others from becoming victims.
Facebook Marketplace and other social commerce marketplaces make buying and selling items easy. But because so many people are using the platform exchanging money and items, it has also become a popular place for scams. Here’s what you need to know about online marketplace scams, and how to avoid letting thieves steal your money.
Frequent online marketplace scams
According to the Federal Trade Commission link opens in a new window (FTC), there are three popular types of scams thieves are using.
- Fake payments — A buyer says they will use an online payment app link opens in a new window and sends the seller a fake payment receipt. They hope that the seller will send the item to them before realizing they’ve been ripped off.
- Overpayment by check — The buyer sends the seller a check for more than the price listed for the item on sale. The seller deposits the check and sends the buyer back the difference, along with the item. By the time the check comes back as fake link opens in a new window, the thief has made off with both cash and the item that was for sale.
- Fake verification codes — The buyer says they want to protect themselves from fake sellers by making sure you are a real person. They send you a Google Voice verification code link opens in a new window and ask you to verify the code for them. This allows the scammer to link a Google Voice line to your phone and scam other people without it being traced back to them.
“When it comes to payments, a screenshot of a payment receipt means nothing,” said Sandy Ozier, a senior vice president at Commerce Bank who works in fraud prevention. “Even if you notice the payment in your account, if the payment was made by check, it could still get returned. Always stay vigilant.”
Ozier underscores that overpayments of any kind are always a red flag and that legitimate sellers will never ask for any sort of verification or personal information.
“Don’t be afraid to walk away,” said Ozier.
Another type of payment to avoid is gift cards. Never accept a gift card from someone you do not know, especially if they want you to give them cash in exchange for one.
“Gift cards have become a favorite tool for scammers,” said Ozier. “Criminals use them as a conduit for stealing from unsuspecting victims.”
According to Facebook’s Shopping Safety page link opens in a new window, buyers can sometimes be at risk of interacting with a scammer. This could be through buying one item but receiving another, paying for an item but never receiving anything, or even asking for a deposit to “hold” an item.
Craigslist has a similar safety page offering tips for in-person transactions link opens in a new window and online scams link opens in a new window.
How to avoid online marketplace scams
Now that you understand how scammers are targeting users on online marketplaces, it’s time to learn what to do to keep your money safe.
The biggest thing to remember to protect your bank account is to pause and think if something doesn’t sound or feel right.
You should also pay close attention to buyer and seller ratings on Marketplace. Once a buyer or seller receives five eligible ratings, their score will be displayed on their Marketplace profile. Users cannot delete, hide, or change ratings they’ve received, so they can be a good indication of the type of person you are working with.
“Scammers count on you moving fast so slow down, step back and evaluate the scenario.
Facebook Marketplace provides ratings to aid you in this process,” said Ozier. “Take a few moments and check the rating and comments before engaging. If you are dealing with a new account with no feedback, it is best to walk away.”
The FTC also recommends not accepting mobile payments from strangers, not depositing checks for the wrong selling price, and never sharing any sort of verification code from someone you don’t know.
“If a seller says any of these things are required for a transaction, your best bet is to find someone else,” said Ozier. “ You are better off to forgo this item than to lose your money and peace of mind.”
Scammers evolve, but your best defense stays the same: stay skeptical, verify before trusting, and never be afraid to say no.
What to do if you become the victim of an online marketplace scam
The first thing to do is to try and stay calm. Panicking can cloud judgment and could prevent recovery of your money. The next thing to do is to call your bank, explain what happened, and ask what can be done to protect your accounts from further fraud. Be sure to listen carefully and take notes. You should also ask if there are any steps you can take to try and recover the money that has been stolen.
Next, call your local police department and report the crime. Police will likely write a report, so be sure to have handy any information you have about the scammer.
You should also report the fraud link opens in a new window to the FTC. They will ask you to tell them what happened and then provide you with a list of next steps.
Facebook also has a way to report Marketplace scams link opens in a new window through the platform.
Facebook Marketplace can be a great resource to offload unwanted used items, but always remember to be vigilant when transacting with someone you do not know. If they ask you to do something that feels unusual, it’s best to stop and think to yourself, “Does this make sense?” If in doubt, do not move forward with the transaction.
