Think You're Getting a Great Deal? It Could Be a Marketplace Scam

Whether you're shopping for a bargain or clearing out items around your home, knowing how these scams work can help you protect yourself.

Common Social Media Marketplace Scams

• The Fake Payment Scam: You're selling an item, and a buyer quickly agrees to your asking price. They send what looks like a payment confirmation email or screenshot claiming they've already paid. The problem? The payment never actually arrives in your account. Sometimes the fake email claims your account must be "upgraded" before you can receive the funds and asks you to send money first, which is a major red flag.
• The Overpayment Scam: A buyer claims to accidentally sends more money than the purchase price and asks you to refund the difference. Later, you discover the original payment was fraudulent or reversed, leaving you out both the refund and the item.
• The Verification Code Scam: A buyer says they need to verify you're a real person and asks you to read back a text message code sent to your phone. In reality, they're using your phone number to create an online account or attempt to access one of your existing accounts.
• The Deposit Scam: You're excited to buy a popular item, but the seller says several people are interested and asks for a deposit to "hold" it. Once you send the money, the seller disappears, and so does the listing.
• The Shipping Scam: A seller insists on shipping an item after you pay using a payment method with little or no buyer protection. After payment, the package never arrives, or it contains something completely different.

Red Flags to Watch Out For

Scammers often rely on urgency and emotion. Be cautious if someone:

• Wants to move the conversation off the marketplace platform.
• Pressures you to act immediately.
• Refuses to meet in person for local sales.
• Requests payment through gift cards, cryptocurrency, or wire transfers.
• Asks for your email address before discussing payment.
• Sends links asking you to "confirm" or "verify" your account.
• Has a brand-new profile with little activity or reviews.

If something feels off, trust your instincts.

Protect yourself

• Verify payments directly through your banking or payment app.
• Never rely on screenshots or emailed payment confirmations.
• Don't hand over the item until the money is in your account.
• Never refund excess money from an overpayment.
• Cancel the transaction and ask the buyer to send the correct amount.
• Never share one-time verification codes with anyone.
• Legitimate buyers don't need to verify your identity this way.
• Avoid sending deposits to strangers.
• Meet in person whenever possible.
• Be cautious of sellers who pressure you to pay immediately.
• Whenever possible, buy locally and inspect items before paying.
• Use payment methods that offer buyer protection.
• Avoid wire transfers or payment apps intended for friends and family.

Tips for Buying Safely

• Meet in a public, well-lit location whenever possible.
• Inspect the item before handing over payment.
• Use secure payment methods with buyer protection.
• Research high-value items before purchasing.
• Never share personal or financial information with strangers.

Tips for Selling Safely

• Accept payment only after you've confirmed the funds have been received.
• Meet buyers in public places during daylight hours.
• Bring someone with you for high-value transactions if possible.
• Keep conversations within the marketplace platform whenever possible.
• Don't click on links sent by buyers.

If you believe you've fallen victim to a marketplace scam:

1. Stop communicating with the scammer.
2. Report the listing and user to the marketplace platform.
3. Contact your financial institution immediately if you shared banking information or sent money.
4. Change passwords if you believe your online accounts may be compromised.
5. Report the scam to the Federal Trade Commission at ReportFraud.ftc.gov.

Scammers are constantly finding new ways to exploit online marketplaces, but a little caution can go a long way. If a deal seems too good to be true, a buyer is rushing you, or someone asks you to send money before you've verified everything, it's best to walk away.

At Forest Area Federal Credit Union, we're committed to helping our members protect their finances. By staying informed and recognizing the warning signs, you can shop and sell online with greater confidence, and keep your money where it belongs. If you're ever uncertain about a transaction or financial request, contact us before taking action. A quick conversation could save you from becoming the victim of a costly scam.

Fraud Awareness and Prevention Center