When you’re looking for that perfect decorative item or trying to save money on clothing by going secondhand, online marketplaces can be a great way to find items you need, reduce waste and save money.
However, they can also be great places for scammers to seek to access your information or to get access to your money. According to research from financial leader Barclays, 93 percent of people who fell prey to scams last year did so online.
You might think of an online marketplace scam as something like giving you a bad item, but there are actually many different scams to watch out for when you’re shopping on Facebook Marketplace, Craig’s List or other online platforms.
Here are a few more common online shopping scams and ways to protect yourself from online fraudsters.
Fake profiles.
When someone is selling an item on Facebook Marketplace, they have to list it using their profile. It can be a red flag if the person has very little history on the platform, and could indicate that it’s a fake profile made for the purpose of selling items or scamming people.
The same goes for other online selling platforms. Many sites, like Mercari or Poshmark, have star ratings for buyers and sellers, so you can see whether the person has some online credibility before you choose to buy from them. You can also check to see how long a profile has been in existence. If it’s less than a couple of years ol, proceed with caution as it might have been created by a scammer for the purpose of selling fraudulent goods.
Demands for upfront payments.
If a seller requests money in advance of giving you an item, be wary. They may not actually have the item and may be luring you in to take advantage of you.
Some sellers may ask you to pay them through person-to-person transfers, like Venmo, where you have little recourse if you make a mistaken payment transaction.
Scammers may also try to request a down payment from you to hold an item, then mysteriously vanish. Chances are that they’ve asked multiple people to make a payment on the same item, which may or may not actually exist.
Too good to be true items.
If someone’s selling an item at an impressively low price, there’s probably a reason for that. While deals do exist, you can’t expect to find a good quality used Louis Vuitton bag on an online marketplace for $50.
Scammers are probably hoping to lure you in with the low price tag, then find a way to get an advance payment from you or access your personal information. In addition, they may tell you that the item is in high demand or that someone else already wants it, as a way to pressure you into making a snap decision and surrendering information that you otherwise wouldn’t share.
If the price looks too good to be true, be suspicious before sharing any information – or just find a different item/seller.
Overpayment.
The overpayment scam can actually take place when you’re the seller. In this scenario, a buyer pays you more than requested for your item, using a check or a digital payment method.
Then, they ask you to refund the extra payment to them. You send them money, then their original check or payment is reversed by their financial institution because of insufficient funds. They didn’t make a payment, may have gotten your item, and also managed to have you pay them. It’s a triple win for them, and potentially a big loss for you.
Strange payment links.
The scammer may send you a link to a website or web landing page and ask you to make a payment there. However, it’s not a real payment method. It’s a phishing site.
When you enter your card information or other details into the site, they collect it and are able to use your information to make purchases elsewhere online.
How to Protect Yourself from Online Marketplace Scams
Just as with many other scams, the first guideline for protecting yourself from online marketplace scams is to be suspicious. While you’d like to think the best of everyone you interact with, your online dealings should include a high level of skepticism toward other buyers and sellers. These tips can help you reduce the potential for being scammed or mitigate the damages if you find yourself being impacted:
- Keep your personal information personal. An online marketplace seller should not need your personal information for any reason. Do not give them card numbers or PIN numbers, and do not share account details with them. If they ask you for any of this information, end the conversation immediately.
- Keep communications on an official platform. Scammers may try to quickly move you to texting, WhatsApp or other platforms away from the official online marketplace, so their scams are more difficult to follow up on.
- Make sure you physically see the item before making a payment. There should be no need to place a deposit on an item or pay in advance. Make the payment once you have seen the item in person and can verify that it is what you expected.
- Report suspicious activity as quickly as possible. If you think you’ve been communicating with a scammer, report it as quickly as possible. Contact your credit union to let them know the situation, so they can help you determine whether your accounts have been affected and help you mitigate damages. In addition, report the scam through the online marketplace, so they can investigate and hopefully remove the scammer, preventing additional losses by others.
There are plenty of great deals in online marketplaces and plenty of opportunities to shop smartly. Just be sure you’re protecting yourself, so your online bargains really are bargains, instead of headaches that you have to manage afterward.