When asked by a reporter why he robbed banks, the famous bank robber Willie Sutton replied, “Because that’s where the money is.” This is the same reason why
cybercriminals lurk around Craigslist and Facebook Marketplace. These online marketplaces, where private individuals sell items to one another, are where large numbers of people can be found. The latest statistics indicate that more than 250 million internet users visit Craigslist.com every month. Facebook Marketplace has four times the number of visitors. At least one billion people use the Facebook marketplace each month, according to industry analysts.
Without a doubt these sites can be convenient spots to unload stuff you no longer need and to find great deals on stuff you do need. “Unfortunately, [they are] also known for exposing sellers and buyers to a multitude of scams,” warns pro-consumer website comparitech.com “You must stay on your toes and be on the lookout for any potential pitfalls.”
Let’s look at some of the most common scams you might run into and some strategies to steer clear of them and protect your hard-earned money.
Payment Scams
“Payment scams can take many forms,” advises Consumer Reports. “Some may try to get you to make a payment to an anonymous account using a payment app. Others may try to steal your personally identifiable information by pretending to be someone trustworthy and reputable.”
Another payment fraud variant is the “Gift Card Payment Scam” where “a seller will try to get you to pay for the items they’re advertising with an untraceable prepaid digital gift card. Once you’ve sent the gift card, they’ll either block you or delete their account,” Consumer Reports says. Similarly, never agree to pay with cryptocurrencies or other non-secure payment methods, including by wire, using bank or international funds transfers, or money orders. If a seller asks for one of these payment methods, it is likely they are a scammer.
How to avoid this scam? To turn the Nike slogan on its head: “Just Don’t Do It”.
Overpayment Scams
“In an overpayment scam, a buyer will send you more than the asking price for an item and then request that you return the overage,” Lifelock.com explains. “While that may seem like the right thing to do, the scammer will then file a chargeback, so they get the full purchase price back, plus the extra money you sent to correct the overage.”
“Another variation of this scam is when the buyer sends you a screenshot supposedly confirming that a transfer was successful but that they sent too much. Always look at your account or call your bank to confirm funds have arrived. If they haven’t, the screenshot is likely fake, and the buyer never paid any money.”
How to avoid this scam? Cancel any transaction where the buyer overpays.
Non-Delivery Scams
Trusting buyers all too often fall victim to this scam where the fraudster never actually intends to deliver the item listed for sale. This allows them to sell the same item over and over again. “Unfortunately, it can be very hard to spot this type of scam until it is too late,” cautions comparitech.com.
How to avoid this scam?
- “Ask whether you can pay for the item in person with cash and pick it up in person in a public place that is convenient for both parties. If the seller acts cagey or has some excuse about why they can only [mail] it, alarm bells should ring.
- If the seller requests an immediate transfer or tries to play on your emotions to hurry you up by claiming they have another buyer, this could be a sign that they are trying to emotionally manipulate you.
- If the seller requests that you communicate or pay outside of Facebook Marketplace, then it could be a scam in which the scammer is trying to hide the transaction from Facebook. If you make a deal outside of Facebook Marketplace and get scammed, then Facebook will have no recourse to help you.”
“Phishing” for Information
Some scammers creeping around on Craigslist or Facebook Marketplace aren't after your money. They want your data. They launch a scam angling for your personal information in order to defraud you. “To carry out this type of attack, scammers often set up fake listings,” says comparitech.com These listings may contain links to malicious websites designed to steal your data. Alternatively, if you show interest in the item and want to purchase it, the seller may ask for sensitive personal details such as a password, phone number, WhatsApp contact number, email address, postal address, Social Security number, or financial information such as bank account details or debit or credit card information.”
How to Avoid this Scam:
To avoid being swindled out of your personal information be very cautious. Only share personal information when absolutely necessary and only after you have established that the seller or buyer you are dealing with is legitimate. If a listing contains a link to an external website, presume that the URL is suspicious until proven otherwise. Check the website for poor grammar, bad spelling, poorly rendered graphics or any other indicators that suggest the site may be fake. Try to find a legitimate version of the website by doing a separate Google search. Check the website’s reviews and trust rating on a site like Trustpilot.com.
In this article we’ve taken a brief look at some of the types of online marketplace scams and offered advice on how to protect yourself. To help you sniff out a scam here’s a free online app: Norton Genie. This tool from Norton, a major player in the anti-virus software business, uses AI to scan an uploaded suspicious message or screenshot. The site then lets you know how likely that the post or message is a scam.
To finish up here’s a quick overview of general ways to stay safe, courtesy of comparitech.com:
- Deal with local buyers/sellers whenever possible.
- Avoid sharing personal information unless absolutely necessary.
- Use secure payment methods like PayPal or cash-on-delivery.
- Inspect products in person before providing payment.
- Be suspicious of deals that appear too good to be true.
- Check comments under listings for warnings from other users.
