7 Tips to Avoid Getting Scammed on Marketplace Apps

When shopping online, be vigilant about marketplace app scams and trust your instincts. To protect you and your loved ones, we've put together 7 practical tips with scam alerts to help you avoid falling victim. These scams are carried out by both buyers and sellers, especially on platforms like Facebook Marketplace, Instagram, eBay, and many more.

To stay safe and avoid falling into such scams, follow the precautions below, whether you are a buyer or a seller:

Tip 1: Do Thorough Research About the Brand

Whether you’re a buyer or seller, the first thing you should do is verify their profile through famous platforms like Instagram, Facebook, and check the public reviews through a reputable, trusted review platform or the comment section of the post or reel.  Check their activity on the page and consider checking the following points:

• Check if the price looks too good to be true
• If the product has an incomplete or generic description, be aware of it.
• Check if the product details match those on the brand’s official website.
• Verify the authenticity of the brand’s page by checking their followers, engagement, and genuine reviews.

Tip 2: Avoid Paying With a Gift Card

In this scam, fraudsters ask you to make payments through digital gift cards instead of secure methods. Once you share the card details and complete the payment, the scammer vanishes, leaving you with nothing. You end up losing your money and the product/service you expected.

Tip 3: Be Aware of Overpayment Scams

In these scams, a scammer falsely claims that they have sent you too much money and requests that you return the difference. This is a confidence trick where they make you agree to buy or sell something or provide a service, then they do the initial payment, which is fake. After that, they contact you claiming that they have overpaid and ask you to send the excess back. Once you return the funds, you will lose all your money and the item you may have already sent. 

To protect yourself from such scams, always verify payments directly through the payment app by checking your balance, and be aware of emails or messages from the payment platform that contain spelling or grammatical errors. When buying items from online marketplaces, do not pay until you get the product in front of your eyes.

Tip 4: Avoid Paying With Third-Party Apps

Avoid paying with P2P payment apps or third-party apps like Zelle, CashApp, and Venmo. Apps like Facebook even warn you before sending money through them, as these are almost fraudulent. These apps are commonly used by cybercriminals, and transactions are irreversible, even if you are scammed.

You might receive a request for payment for a service you didn’t use or a fake invoice. Scammers pressure individuals into believing they have sent money through these third-party apps with fake confirmation messages and then force them to return it deliberately. As soon as you give them the money back, you’ll soon realize no payment was made earlier by them.

Note: These apps sometimes ask you to input your login credentials, which is done to steal your bank account details. Whenever possible, go with cash on delivery or physical in-person payments.

Tip 5: Be Wary of Triangulation Fraud

The fraudsters create an online storefront, often on a third-party marketplace, that advertises high-demand products at low prices to attract customers. Since these products are often copied from legitimate retailers, cross-check the product images on official sites.

When a real customer buys from these stores, fraudsters use a stolen credit card or the legitimate customer’s payment information to sell their fake products. The legitimate retailer ships the product directly to the original, unwitting customer who believes they are receiving a legitimate purchase. Meanwhile, the real retailer receives a chargeback for the fraudulent purchase, and the original cardholder reports the fraudulent transaction.

Tip 6: Buyer Has Not Received the Item Scam

The scammer contacts a seller about purchasing an item. The scammer offers to arrange and pay for the shipping, sending the seller a fake or prepaid shipping label. Then the fraudsters use the tracking number to change the delivery address or direct the package to an untraceable location. After the item is sent, the scammer falsely claims they never received it. Because the seller had no control over the shipping or was sent a fake label, they have no proof of delivery and lose both the item and the payment.

Tip 7: Demanding Deposits

A scammer lists a desirable item, such as a car or rental property, at a lower-market price to gain interest. The scammers insist on an upfront deposit or booking fee to hold the item, creating a sense of urgency. After receiving the deposit, the scammer disappears without delivering the item or providing the service. No genuine marketplace asks for a deposit before purchase. It’s best not to pay them, as they’re likely a scam. 

How to Identify and Avoid Marketplace Scams?

If you want to make sure about the seller, whether they’re fraud or not, consider checking the following signs:

• If a deal or a seller seems off or too good to be true, just walk away.
• Always trust your instincts.
• Be aware of urgency attacks as scammers create a sense of urgency to pressure you into making a quick decision.
• Research the seller by checking their profile for a history of activity, ratings, and reviews from other buyers.
• An item listed for an unbelievably low price compared to its market value is a sign of a scam.
• Never provide your full address, bank details, or one-time passwords to buyers or sellers.
• Scammers try to get you to move the conversation to a different messaging app like WhatsApp.

Frequently Asked Questions

How to verify someone is real on FB marketplace?

To verify someone’s legitimacy, consider checking the points below:

• Check if the account is not new and has little activity; it might be fake.
• Review marketplace ratings and reviews, but be cautious of scammers who may have negative feedback or no reviews at all.
• Check for mutual friends or connections, as shared connections can increase a seller’s trustworthiness.
• Perform a reverse image search, as some scammers use generic stock photos for their profiles, which you can easily find on Google already.

What are the safest payment methods for a seller?

The safest method can vary depending on whether the transaction is online or in person for a small or large amount. However, you can consider reading the following points:

• Cash on delivery is the safest method, as you pay only after receiving the product.
• Consider an irreversible transaction, such as direct bank transfers or cash.
• While credit and debit cards are widely used and convenient, these methods carry a risk of fraud and chargebacks, which are costly for the seller.

How to avoid fake profiles on Marketplace?

To avoid fake profiles on the marketplace,

• Check for a real profile picture, an active friends list, and past posts or reviews on a reputable platform.
• A newly created account with few or no reviews is a major red flag.
• A real seller provides specific details about the item and the reason for the sale.
• Check for inconsistencies in their information or story, which signals a scam.
• Avoid wire transfers, gift cards, or sending money through external links