8 Common Facebook Marketplace Scams and How to Avoid Them

Scams

Here’s what to look out for when buying or selling things on the online marketplace and how to know if you’re being scammed

06 July 2022
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5 min. read

Last year, Facebook Marketplace surpassed one billion global users. In doing so, it has become a giant of the consumer-to-consumer space, allowing individual Facebook users to seamlessly buy from and sell to each other. It has surpassed Craigslist in popularity for several reasons. It’s also free and easy to use, since most people already have a Facebook account. It allows users to search for listings from their local area, making picking up much easier. And because people can see sellers’ profiles, they feel more assured of safety and security on the site. Unfortunately, this is often a false sense of security.

One recent survey revealed that one in six (17%) respondents had been scammed on the website. Of course, much of the trade on this “classified ad section” of Facebook is legitimate, but like any other online market, it also attracts many scammers.

RELATED READING: 10 Reasons Why We Fall For Scams

It’s no wonder, then, that the social network finds it difficult to stop the fraudsters, sometimes overzealously blocking legitimate users, while inadvertently allowing scams to slip through a combination of automated checks and human reviewers. With fake listings ranging from apartment sales to car purchases, the stakes are pretty high.

This puts even more pressure on users to understand the typical tricks online fraudsters use, and what they can do to stay safe. Here are the top eight scams to watch out for on Facebook Marketplace and how to spot the red flags:

1. Defective items

Sellers can advertise a product that looks good in the photo they posted. But once it’s delivered, or you get it home, it turns out to be broken. This is especially difficult when buying electronic items, because you usually can’t scroll through every bit of functionality before handing over the money. This is just as likely to happen as a result of an unscrupulous seller as a professional fraudster.

2. Counterfeit items

If it is not broken, it may be a fake product. Designer clothes, perfumes, jewelery and cosmetics are particularly common targets for counterfeiting. Like scams with defective items, it’s hard to tell if it’s real or not just from a small photo. Everyone is looking for a bargain. But when offers seem too good to be true, they usually are.

3. Google Voice scams

Facebook Marketplace is also used to exploit other types of fraud, possibly on other platforms. In one example, the scammer agrees to buy an item. But after taking the conversation on a non-monitored platform like WhatsApp, they ask the seller to authenticate themselves with a verification code. In reality, the code sent to the seller’s phone is a two-factor authentication code sent by Google Voice and initiated by the fraudster. Now they can create an account using the seller’s phone number, which can be used in other scams. With even more information, they can try to open other accounts in your name or gain access to existing ones.

4. Overpayment

Sellers can also be scammed by scammers on Facebook Marketplace. In one classic example, they’ll claim they overpaid for an item you’re selling, and post a screenshot that appears to show the deal. They will ask for the difference to be refunded. But of course there was no original payment, and now you’re out with the refund amount.

5. Non-delivery (advance payment)

A classic trick is to sell an item and collect the money, but then never deliver it to the buyer. Of course, this only applies to items shipped from outside the buyer’s local area.

6. Fake gifts/phishing

One way to get that additional information is to broadcast giveaways via Facebook Marketplace. By simply clicking a link and filling in some personal information, the victim believes they’re going to be in line for some free luxury items, crypto, or other special offers. Of course, the scammers just want their personal information to commit follow-up identity fraud or theft.

RELATED READING: 5 Warning Signs Your Identity Has Been Stolen

7. Insurance scams

Sellers with expensive items listed on Facebook Marketplace may also be contacted by fraudulent buyers. The latter agrees to pay for shipping and sends a fake invoice to ‘prove’ they have. There is only one catch, they have to pay the seller a small insurance fee. This may be a relatively small amount compared to the item for sale, which may persuade the seller to go along with it.

8. Bait and switch

Scammers advertise what is often a high-quality product with a very attractive price tag. When you want to grab the “bargain” that product is “gone” and you will be offered a similar item for a much steeper price or an inferior alternative.

How to Spot a Facebook Marketplace Scam

As with any type of online fraud, the key for internet users is to remain skeptical and vigilant. Here are 10 tips to help you navigate Facebook Marketplace safely:

Inspect items before purchase by only buying from local sellers. Always meet in a public place rather than at your home, and in a well-lit area, ideally during daylight hours. Check buyer/seller profiles for user ratings, and be vigilant if profiles are only recently created. Check the original price of items and if there is a significant gap between this and the for-sale price, be aware that it may be counterfeit/stolen/defective etc. Beware of giveaway deals and never enter personal details to access them. . Only use trusted payment methods via Facebook Messenger (PayPal, Facebook Checkout) as they provide a way to dispute a payment. Gift cards, wire transfers and payments via services such as Venmo and Zelle are commonly requested by fraudsters. Keep your conversation on Facebook – scammers like to move the conversation to another platform where they can more easily scam people and potentially prevent them from disputing transactions. Never ship items before payment is made. Watch out for changes in the listing price. Do not send 2FA codes to prospective buyers.

If the worst happens and you suspect fraud, you should report the seller – here’s how.

As the cost of living crisis bites, more users than ever will turn to online platforms like Facebook Marketplace to get their hands on goods at discounted rates. Be warned: fraudsters are also patrolling the platform in increasing numbers.

BEFORE YOU GO: The Holiday Shopping Triangle: Scams, Social Media and Supply Chain Misery