Facebook Marketplace is an extremely handy platform for buying and selling new and pre-owned items in your neighborhood. That’s why so many people use Marketplace, according to Facebook’s own figures.
It’s generally straightforward and user-friendly. It’s a convenient spot to uncover bargains or to move items you no longer need. (Here’s our walkthrough on how to list items for sale.)
Sadly, Marketplace’s open nature also makes it attractive to con artists and fraudsters. A digital intelligence firm called BeenVerified compiled a report on online scams, finding that fraud on Facebook Marketplace rose by nearly 185% in 2022 versus 2021.
We can’t verify that exact figure here, but scams definitely occur on Marketplace. Anywhere large sums or frequent transactions happen online, deceptive activity tends to follow.
What will 2023 hold? Likely more scams, since this type of criminal behavior isn’t disappearing anytime soon.
Safety Advice for Buyers and Sellers
Both purchasers and sellers have been targets on Marketplace (and comparable sites like Craigslist), BeenVerified reports. Buyers have lost money after receiving faulty goods or after sending cash or deposits with nothing delivered in return. Sellers have had items stolen by bogus “buyers” using counterfeit checks or stolen identities.
BeenVerified suggests precautions for using Facebook Marketplace securely:
- Prefer dealing with local sellers and inspect the item before handing over payment.
- Avoid payment methods outside Facebook Checkout or PayPal.
- Don’t be lured by unbelievably low prices — if it seems too good to be true, it likely is.
- Don’t sign up for supposed giveaways.
- If you meet a buyer or seller in person, choose a well-lit, public location.
- Sellers should never ship an item until payment is received.
- Review the buyer’s or seller’s profile before completing a transaction. Recently created accounts are suspicious.
Steps to Take if You’re Scammed on Facebook Marketplace
You may be eligible for a refund depending on the circumstances. Facebook maintains a program called Facebook Purchase Protection to help buyers. Here’s Facebook’s walkthrough for using the policy. It applies to situations including:
- You never received the item you ordered.
- The product arrived damaged or didn’t match the listing description.
- The seller failed to honor their stated refund policy.
- The purchase was unauthorized — for example, your account was compromised and someone else made a purchase.
To report a problematic seller on Facebook Marketplace, click the “Marketplace” icon on the left side of your screen. Locate the seller’s listing and click their name. Choose the “More Options” button and select “Report Seller.” Follow the prompts to submit your report. If you were defrauded, you’ll be asked to supply supporting evidence.
Nine Frequent Facebook Marketplace Scams
BeenVerified’s analysts outlined nine prevalent scams:
1. Paying Off-Platform
Marketplace has Facebook Checkout and accepts PayPal, and those are safer choices. If you pay outside Facebook, the platform can’t trace those transactions to help secure a refund.
2. Faulty or Misrepresented Items
Be wary of rock-bottom prices on high-end electronics like iPhones or PlayStations.
3. Requests to Mail Items Instead of Local Pickup
As a seller, a buyer may ask you to ship before payment and then never pay. As a buyer, you could be tricked into sending funds before receiving the item.
4. The Google Voice Trick
A scammer requests your phone number and a six-digit verification code to seize control of your Google Voice account, enabling them to create more accounts under your identity and potentially carry out crimes in your name.
Never provide verification codes to buyers or sellers.
5. Overpayment Frauds
A buyer pays more than the agreed price and requests a partial refund. That payment may have come from a fraudulent check or stolen card, leaving you out of pocket for the refund and the fake payment.
6. Bogus Giveaway Schemes
They tell you you won something and ask you to submit personal information through a form…
7. The Insurance Fee Ruse
A buyer asks you to ship the item and says they’ll cover shipping, but first asks you to pay a small refundable “insurance” fee. Once you pay, the buyer disappears.
8. Non-Delivery Scams
The seller takes your money and never sends the purchased item.
9. Bait-and-Switch Listings
A seller advertises an attractive deal, then claims it’s no longer available and pitches a less desirable alternative.
What to Do If You’ve Sent Money to a Fraudster
Here’s a concise action plan for victims of scams:
- Secure your bank and credit card accounts immediately.
- Contact the three major credit reporting agencies.
- Update and strengthen your passwords.
- File reports with local law enforcement, state consumer regulators, and the FBI’s Internet Crime Complaint Center.
Remember, Facebook Marketplace can be a very practical way to buy and sell items locally. Many people — including us — have used it successfully.
Just stay vigilant and protect yourself.
Alex Carter ( [email protected] ) is a senior writer at Savinly.
