Greg's Corner

The Marketplace Scam That Targets Sellers

By Greg Collier

When people hear about online shopping scams, they usually think about buyers getting ripped off. Someone pays for an item that never arrives, receives something completely different from what was advertised, or sends money to a fake seller.

But there is another side to the equation that is easy to overlook.

Sellers can be scammed, too.

A recent warning from Augusta, Georgia, highlights a scheme targeting people who are trying to sell furniture, electronics, and other items through Facebook Marketplace. The scam involves fake buyers, fake payment notifications, and a simple trick designed to convince sellers to send their own money to a stranger.

And while Facebook Marketplace is the platform highlighted in this particular warning, there is nothing uniquely Facebook about the scheme.

The same tactic can be used against people selling items through virtually any other online classifieds or marketplace platform.

The Fake Buyer Arrives Quickly

The scam often begins with something that seems encouraging.

You put an item up for sale and almost immediately receive a message asking whether it is still available.

The person doesn’t spend much time negotiating. They may quickly agree to your asking price and appear eager to complete the transaction. They might then ask to move the conversation from the marketplace’s messaging system to text.

That speed can actually be part of the trap.

The supposed buyer may ask whether you accept Venmo, Zelle or another electronic payment service. They then claim they have sent the money.

You check your account.

Nothing is there.

That’s when the fake buyer’s story begins.

The Fake Payment Problem

Instead of seeing money in your payment account, you may receive an email that appears to come from Venmo or another payment service.

The message claims there is a problem with your account.

Perhaps the supposed buyer used a business account. Maybe your account needs to be upgraded. Whatever the explanation, the email eventually leads to the same demand:

You need to send money before you can receive money.

The seller may be told to send several hundred dollars to upgrade the account or unlock the payment. The scammer may even promise that the money will be returned once the transaction is completed.

It sounds complicated enough to be believable.

But there is nothing to unlock.

The original payment never existed.

The email is fake.

And if the seller sends the requested money, that money is very real.

Why This Scam Works

One reason this scam can be effective is that it takes advantage of something sellers are already expecting.

They are expecting someone to pay them.

They are also accustomed to receiving automated emails and notifications from payment services.

A message saying that a payment is pending or that an account needs to be upgraded doesn’t necessarily look strange at first glance.

There is also a psychological element.

The seller believes a transaction is already underway. They don’t want to lose the buyer, so a relatively small payment may seem like an annoying but temporary inconvenience.

That’s exactly what the scammer wants.

The victim isn’t thinking, “I’m sending money to a stranger.”

They’re thinking, “I’m fixing a problem so I can get my money.”

A Screenshot Is Not a Payment

This is why one of the most important rules for selling online is simple:

Never consider yourself paid until the money actually appears in your account.

Don’t trust a screenshot from a buyer.

Don’t trust an email saying you’ve been paid.

Don’t trust a text message saying the payment is pending.

And don’t trust a buyer who tells you that you need to send money to receive your money.

Open the actual payment application or website yourself and check the account.

If the payment isn’t there, you haven’t been paid.

Look at the Buyer, but Don’t Trust the Profile

Checking a potential buyer’s profile can provide useful information.

A brand-new account, little activity, or an almost empty profile can be a warning sign.

But scammers know that, too.

A convincing profile doesn’t necessarily mean you’re dealing with a real person. Fraudsters can use stolen photographs and other information to make fake accounts appear authentic.

So don’t let a photograph, a long list of friends, or a few old posts convince you that someone is legitimate.

Those things may provide clues, but they aren’t proof.

Don’t Let a Buyer Create the Rules

Another warning sign is a buyer who tries to dictate unusual payment procedures.

A legitimate buyer shouldn’t need you to pay a fee to receive their payment.

They shouldn’t need you to “upgrade” your account by sending them money.

They shouldn’t send you a check and ask you to return part of it.

They shouldn’t ask you to purchase gift cards.

And they shouldn’t pressure you to move money around because of some problem they claim exists with your payment account.

If someone tells you that you have to send them money before they can pay you, stop.

That’s not how selling something works.

The Old “Buyer Beware” Rule Works Both Ways

For generations, consumers have been warned to follow the principle of buyer beware.

Online classifieds have changed the equation.

Today, sellers need to be just as cautious.

A person who responds to your advertisement may not be interested in buying your item at all. They may be interested in your bank account.

That’s particularly important when the supposed buyer seems almost too eager. A buyer who immediately accepts your price, wants to move the conversation off the platform, and then introduces an unusual payment problem should raise questions.

The best defense is to slow the transaction down.

Check your account yourself. Verify communications independently. Don’t send money to receive money. And never let a stranger’s artificial sense of urgency dictate what you do with your own money.

The item you’re selling might be worth $100.

The scammer may be hoping to make you send them $500 instead.

On the internet, sellers need to remember that they’re not just selling an item. They’re also advertising themselves as a potential target.