Facebook Marketplace is a feature on Facebook that allows users to buy and sell items locally. It has grown quickly in popularity since launching in 2016, with over 1 billion users visiting Marketplace each month. While Marketplace provides a convenient way to buy and sell used goods, it has also become a hotbed for scams. In this article, we’ll explore some of the common scams happening on Marketplace and provide tips on how to avoid them.
Too good to be true deals
One of the most common Marketplace scams involves listings that seem too good to be true. For example, a high-end electronics item or designer clothing being sold for a fraction of its usual price. Scammers will often use photos stolen from other listings or websites to make their deal look more legitimate. They’re counting on buyers being so excited by the amazing deal that they’ll send money without doing proper vetting.
Some red flags of a potential scam include:
- The price is much lower than similar listings
- The listing has generic photos instead of ones showing the actual item
- The seller is unable to meet in person to complete the transaction
When coming across suspiciously cheap listings, it’s essential to ask the seller lots of questions and ask to see the item in person before sending any money. Legitimate sellers should be able to provide additional photos of the item and details about its condition.
Fake shipping scams
One of the most popular items sold on Marketplace is clothing and accessories. Scammers take advantage of this by pretending to sell designer or specialty apparel at low prices. After the buyer sends payment, the scammer will claim they shipped the item but never actually send anything. They will provide fake tracking numbers and ask the buyer to be patient while the item is in transit. Eventually, they stop responding to messages once it’s clear they won’t receive the goods.
To avoid this, always meet up to complete a clothing or accessory transaction in person. If the seller claims they can’t meet locally, move on to other listings where the seller is willing to meet face-to-face.
Fake payment scams
When buyers find an item they want to purchase on Marketplace, scammers will sometimes send a fraudulent payment notification. For example, they may send a fake PayPal email claiming the payment went through. However, they actually sent nothing, and the transfer will not complete. The buyer, thinking they’ve been paid, will ship the item. Only later they realize they never received the funds.
Red flags of a fake payment include:
- Email claiming payment sent outside of Marketplace messaging
- Notification of payment before discussing transaction details like shipping
- Follow up messages urging you to ship the item quickly
Always confirm payment has hit your account before shipping anything sold on Marketplace. Only communicate and accept payment through official Marketplace messaging.
What you can do to avoid Marketplace scams
Here are some tips to follow when buying or selling on Marketplace to reduce your risk:
- Thoroughly vet sellers by checking reviews and profiles.
- Insist on meeting in person before exchanging money.
- Don’t communicate or pay outside of Marketplace messaging.
- Confirm payment cleared your account before shipping.
- Be wary of deals that seem too good to be true.
- Ask for multiple photos of the actual item from the seller.
Facebook also offers some protections against scams and fraudulent listings. Here are some things they recommend:
- Report suspicious listings so Facebook can take them down.
- Only pay for items using secure Marketplace payments.
- Don’t ship item until payment clears.
- Turn on 2-factor authentication for your Facebook account.
- Watch out for spoofed emails pretending to be from Facebook.
Are Marketplace scams becoming more common?
With Marketplace’s meteoric growth, scams have also proliferated. Exact data on Marketplace scams is hard to track, but anecdotally scams appear to be on the rise.
One analytics firm Comparitech tried to collect data on Marketplace scams by analyzing scam listings removed by Facebook. They found:
- Nearly 1.4 million Marketplace scams were taken down in 2020, up from around 530,000 in 2019.
- Listings with the word “Facebook” in them were 62% more likely to be fraudulent.
- Scam listings with the word “Facebook” grew from 173,000 in 2019 to 611,000 in 2020.
This data shows scammers trying to exploit people’s trust in Facebook itself as a platform. Given Marketplace’s continued growth, it’s reasonable to expect scams to keep rising as well without additional protections.
Are Marketplace scams underreported?
Marketplace scams likely happen more frequently than reported. There are a few reasons victims may not report frauds:
- Embarrassment – Admitting you got cheated can be embarrassing for victims.
- Small dollar amounts – For minor scams under $50, some may not feel it’s worth the effort to report.
- No proof – If scammed with fake shipping or payment, lack of evidence makes reporting difficult.
Facebook has made reporting scams easier within Marketplace messaging. But many users still may not go through the effort, especially for smaller amounts. Increased user education could improve awareness and reporting rates.
What does Facebook do to fight Marketplace scams?
Facebook recognizes the threat scams pose to Marketplace’s reputation. They have implemented some protections, but critics argue more work is needed. Their anti-scam efforts include:
- Listing reviews – Listings reported as suspicious undergo human review before removal.
- Payment protection – Encourages buyers and sellers to use secure Marketplace payments.
- Updated reporting – Simplified scam and abuse reporting within Marketplace messaging.
- Raising awareness – Adding educational tips on avoiding scams to Marketplace.
However, many say Facebook needs to do more to verify sellers’ identities to reduce fraudulent listings getting posted in the first place. Facebook also still does not offer buyer protection from scams like some other platforms.
Is Facebook Marketplace riskier than other platforms?
Facebook Marketplace has significantly less anti-scam protections compared to dedicated commerce platforms like eBay and Craigslist. However, scams still happen on nearly all buy/sell platforms.
Here’s how Facebook Marketplace compares:
| Platform | Scam Risk | Scam Prevention |
|---|---|---|
| Facebook Marketplace | High | Minimal protections, no buyer guarantees |
| eBay | Moderate | Seller ID verification required, buyer guarantees |
| Craigslist | High | Minimal protections like Facebook |
In general, Facebook Marketplace poses a higher scam risk than sites like eBay due to looser seller screening and lack of buyer guarantees. However, diligent vetting by buyers can reduce the risks.
Are Facebook Marketplace scams illegal?
Yes, scams perpetrated on Marketplace are illegal and can be reported to the authorities. Types of scams that may violate the law include:
- Wire/mail fraud – Sending fake payments or products through mail.
- Identity theft – Stealing personal information to create fake accounts.
- False advertising – Misrepresenting a product to buyers.
- Theft by deception – Accepting payment for goods never shipped.
Scammers can face prosecution, fines, and jail time if law enforcement pursues a fraud investigation and presses charges. Victims should report scams to local police and the FBI’s Internet Crime Complaint Center.
Are Facebook Marketplace scams civil or criminal?
Marketplace scams can potentially be either civil or criminal acts under the law. The distinction comes down to:
- Civil – Harm caused is limited to economic damages like lost money. Handled through private lawsuits.
- Criminal – Violates laws prohibiting certain acts like wire fraud. Handled through law enforcement.
In practice, most Marketplace scams are treated as criminal acts when prosecuted since they involve overt fraud or deception. However, victims can also pursue civil lawsuits if they can identify the scammer. But cyber fraudsters are often hard to track down for legal actions.
What recourse do victims have against Marketplace scams?
If scammed on Marketplace, victims have a few options to potentially get some recourse, including:
- Reporting to Facebook – Can get scam listings removed.
- Filing police report – Creates paper trail in case scammer is caught.
- Small claims court – Can sue identifiable scammer for damages.
- Civil lawsuit – Potentially sue Facebook for lack of protections.
- Credit card chargeback – Reverse payment if purchased using credit card.
However, victims are unlikely to fully recover lost funds in most cases since scammers are difficult to identify and locate. Prevention remains the best remedy against Marketplace scams.
Conclusion
Scams are a growing issue undermining the Facebook Marketplace experience. While still a useful platform, users need to exercise caution when buying or selling items. Always vet transaction partners thoroughly, insist on secure payments, and report any suspicious behavior. With greater vigilance by users and proactive protections by Facebook, Marketplace can provide a safer platform to exchange goods locally.