How to spot and avoid Facebook Marketplace scams

Facebook Marketplace has become a popular platform for buying and selling items, but it’s also a hotspot for scammers looking to exploit unsuspecting users. The Federal Trade Commission reports that scammers on social media cost American consumers more than $1.2 billion in 2022 – a 54 percent increase from the previous year. Marketplace scams are the most commonly reported social media scams, accounting for a large share of consumer losses.

These Marketplace scams can take various forms, aiming to either get items for free, trick you into paying for something that isn’t real, or steal your money outright. However, you can identify most scams if you know what to look for. Here’s a comprehensive guide to some of the most common scams and how to avoid them.

Common Facebook Marketplace scams

Marketplace scammers are constantly devising new ways to trick their victims. While it’s impossible to list every scam, here are some of the most frequently encountered ones.

Asking for items before payment is received

One of the most common scams involves buyers demanding to receive a product before their payment has been fully transferred. This can be a red flag, as they might cancel the payment or send a fake email claiming they’ve paid. Always ensure you receive payment before handing over any items.

Conversely, scammers often use fake listings and demand payment before shipping the item. If they ask for a deposit or down payment before meeting in person or mailing the item, it could be a red flag. Scammers may also use bait and switch to list a higher-quality item, then deliver a similar item of subpar quality.

Marketplace scammers may also use fake payment confirmation emails that look legitimate but are actually from free email domains like Gmail, Hotmail, or Yahoo. To avoid falling for this scam, always verify payment through the official app or payment method.

Broken electronics

When buying electronics, it’s important to test the equipment before paying. Scammers often sell broken devices, and by the time you realize it, they’ve disappeared from the platform. Meeting in a public place and testing the item on the spot can help you avoid this scam. If the seller refuses to let you test the item, it’s a major red flag. Always insist on verifying the functionality of electronic devices before completing the transaction.

Overpayment

In this scam, buyers overpay for an item and ask for the difference back. They usually use stolen payment methods, and once the overpayment is reversed, you’re left out of pocket. For example, if they buy something from you for $100 but send you $250, they’ll ask for the extra $150 back. Be wary of overpayments and always verify the source of funds. If you receive an overpayment, contact the payment provider to confirm the legitimacy of the transaction before sending any money back.

Fake peer-to-peer payment app requests

Scammers might send emails that appear to be from legitimate payment apps like Venmo, but they’re actually from fake accounts. These emails often ask you to send money or claim you’ve been paid when you haven’t. Always verify payment through the official app. Look out for email addresses that don’t match the official domain of the payment app. For instance, an email from Venmo should come from an address ending in @venmo.com, not a free email service.

Communicating outside of Facebook Messenger

Stick to Facebook Messenger for communication. Sharing your phone number can lead to identity theft or other scams. Scammers may ask you to communicate via text or email to get your personal information. Keep all interactions within the app to stay safe. If a buyer or seller insists on communicating outside the app, it’s a red flag. Facebook Messenger has built-in tools that provide a layer of security, so there’s no need to use external communication methods.

How to identify potential scams

Scammers often create new Facebook accounts or take over existing ones. Be cautious of new accounts and always verify the identity of the person you’re dealing with. If something feels off, it’s better to walk away from the transaction.

Does the item seem like it’s a great price – maybe too great? Scammers often offer deals that are too good to be true or ask you to break Marketplace guidelines. Here are some additional tips to help you identify potential scams:

• Check their profile: New accounts with little to no activity or friends can be a sign of a scammer. Established accounts with a history of posts and interactions are generally more trustworthy.
• Review Marketplace ratings: Facebook Marketplace allows users to leave feedback and uses a star rating system to rate buyers and sellers. If a user has a history of negative feedback, it’s a red flag and it’s best to avoid them.
• Ask questions: Don’t be afraid to ask detailed questions about the item you’re buying. Scammers often provide vague or inconsistent answers. Genuine sellers will be able to provide detailed information and answer your questions confidently.
• Trust your instincts: If something doesn’t feel right, trust your instincts. It’s better to miss out on a deal than to fall victim to a scam. Scammers often use high-pressure tactics to rush you into a decision. Take your time and don’t let anyone pressure you into a transaction.

What to do if you get scammed

If you fall victim to a scam, act quickly to minimize damage. Here are the steps you should take:

• Freeze compromised cards: If a scammer gets ahold of your payment information, lock compromised cards Contact your financial institution or credit card company to report the fraud and prevent further unauthorized transactions.
• Protect your personal information: Change your passwords and enable two-factor authentication on your accounts to prevent further access. Be vigilant about monitoring your accounts for any suspicious activity.
• Report the scam to Facebook Marketplace: Provide as much evidence as possible to help their fraud team investigate the scam. This includes screenshots of messages, emails, and any other relevant information. Reporting the scam can help prevent others from falling victim to the same scammer.
• File a police report: In some cases, it may be necessary to file a police report, especially if you’ve lost a significant amount of money or personal information. This can also help with any potential insurance claims.
• Notify the payment provider: If the scam involved a payment app or service, notify the provider immediately. They may be able to reverse the transaction or provide additional assistance in recovering your funds.

Remember knowledge is power 

Before asking, “Is this still available?” stay informed about common scams to protect yourself on Facebook Marketplace. By identifying potential scams early, you can avoid losing your hard-earned money. Remember, if a deal seems too good to be true, it probably is. Here are some final tips to help you stay safe:

• Use secure payment methods: When sending payment, avoid using wire transfers or other untraceable payment method Stick to secure payment options that offer buyer protection, such as PayPal or Empeople credit cards.
• Meet in public places: When meeting a buyer or seller in person, choose a public location with plenty of people around. This reduces the risk of encountering a scammer or being put in a dangerous situation. Many local police departments have designated parking spaces for online transaction activity.
• Keep records: Maintain records of all transactions, including messages, emails, and payment receipts. This can be helpful to report a scam or dispute a transaction.
• Stay informed: Keep up to date on the latest scams and tactics used by scammers. The more you know, the better equipped you’ll be to spot and avoid scams.

By following these tips and staying vigilant, you can enjoy the benefits of buying and selling on Facebook Marketplace while minimizing the risk of falling victim to scams. When used smartly, there’s a treasure trove of great stuff waiting for its next home! Stay safe and happy shopping.