Online Marketplaces and Shopping Scams
Greetings, Scam Wise community! In this issue, we’re stepping into the world of online marketplaces and e-commerce , where scammers lurk in the digital shadows of buy-and-sell groups, auction sites, and retail websites. North Americans are buying everything from sofas to smartphones via Facebook Marketplace, Craigslist, eBay, Kijiji, and dozens of other platforms – not to mention the explosion of online stores. It’s convenient and fun… until a scammer tries to make off with your cash or goods. Let’s arm you with knowledge to shop and sell safely!
Scam Prevention Tips
- Use Platform Protections: When using sites like eBay or Etsy, keep communications and transactions on the platform . Scammers often say “Text me off-platform, I’ll pay you directly via wire or gift card.” They want to sidestep any buyer/seller protections. Resist that. If you’re on Facebook Marketplace, consider using Facebook Checkout or in-person cash; don’t agree to weird payment app transfers to strangers. Many platforms have refund or dispute processes – but only if you stay within their system .
- Never Pay a Stranger with Gift Cards or Crypto: This tip recurs because it’s critical. Whether you’re buying a used car or a purebred puppy online, if the seller says “Please pay via Amazon gift cards or Bitcoin,” it’s a scam. Legit sellers in North America will take traceable payments (credit card, PayPal, cash in person). A request for gift card codes or crypto is the scammer’s way to disappear with your money without a trace.
- Check Seller/Buyer Profiles and Reviews: If you’re dealing with an online seller, examine their profile. New account with no history? Very cautious. On sites that have ratings (like eBay), a long history of positive feedback is a good sign; zero or bad feedback is worrisome. On social media marketplaces, click the person’s profile – if it’s a freshly made account with scant info, be careful. For buyers (if you’re the seller), watch for over-eagerness or strange behavior: a common scam is a “buyer” offering to overpay and have you ship an item – they might send a fake PayPal payment email or a bogus check. Always verify payments are truly received (e.g. login to your PayPal to confirm, don’t trust an email receipt alone).
- Meet Local Buyers/Sellers Safely: If you’re doing a local transaction via Craigslist, Marketplace, etc., always meet in a public place . Many police stations now offer “Safe Exchange Zones” in their parking lots for this purpose – a great option. Never invite strangers to your home or go alone to theirs for a transaction if you can avoid it. Also, cash is king for local deals – counterfeit bills are a slight risk, but more often it’s safe and immediate. If a buyer insists on some complicated payment (wiring money to your account later, etc.), that’s sketchy. And if a seller refuses to meet or let you inspect a big purchase (like a car or furniture) in person and only wants to ship it, that’s likely a scam.
Real Scenario – The Facebook Marketplace Couch Scam
Real life example: An elderly couple in North Carolina was scammed on Facebook Marketplace over a couch, demonstrating how even small transactions can be targeted. The couple found a nice sofa listed for $400 by a seller who claimed to be local. The seller told a convincing story – they had many interested buyers but would hold the couch for this couple if they paid a $100 deposit via a payment app (Zelle) . Initially, the couple was hesitant and declined to send a deposit. The couch listing disappeared – supposedly “sold.” But about a week later, the seller came back, saying the prior deal fell through and offering the couple another chance. Feeling lucky, they agreed this time and sent $100 to secure it. The seller then promised to deliver the couch by 11 a.m. the next day. Red flag #1 : the morning of delivery, the seller asked for an extra $50 for “gas money.” The couple, eager for their couch, sadly complied and sent another $50. You can guess what happened at 11 a.m. – no couch, no delivery. The seller vanished, cutting off contact. The couple lost $150, which for them was a significant portion of their fixed income. They were heartbroken, not just for the money, but the feeling of being duped. This scenario shows multiple scam tactics : a fake scarcity/urgency (“lots of offers, act now”), taking a deposit (which legitimate local sellers typically don’t do – you pay when you get the item), and the classic second-payment trick. Plus, notice the emotional manipulation – the scammer took advantage of the couple’s excitement about the item. For context, the FTC says in 2023 Americans reported $400 million in losses to online shopping scams , including things like this. And according to the BBB, nearly 70% of all scam reports they collected in 2024 involved online purchase fraud, which is huge. So if you ever feel a twinge of “Is this deal too perfect? Why are they asking me to pay upfront?” – step back. It’s better to lose a sale than money.
Scam Radar – Trends in E-Commerce Fraud
One trend on our radar is the rise of fake online stores and spoofed websites. Scammers are creating entire websites (or copying real ones) to trick shoppers, especially around holidays. For example, a site might look like a famous retailer but the URL is slightly off (e.g., TargetS.com instead of Target.com). These fake sites often advertise unreal deals on social media – “70% off latest Nike shoes!” – luring you in t . When you order, one of two things happens: either you get nothing at all, or you receive a cheap counterfeit item. By the time you realize, the site may be gone. In 2023, more than 80% of people who reported these scams said they lost money (the highest “success” rate of any scam). How to counter this? Use established online stores or verify new ones through reviews. Check for HTTPS and a proper business address/contact info on the site. If a random website offers a high-demand item for 1/3 the price, it’s likely a scam or knockoff. Another trend: package delivery scams (we touched on this in Issue 12 too). With so many of us getting parcels, scammers send fake “delivery failure” texts or emails that look like they’re from USPS, FedEx, etc. They ask you to click a link to reschedule or provide address info, which then phishes your details or installs malware. There’s also a “brushing” scam where you receive random cheap items you didn’t order (often from Amazon) – that’s less dangerous, it’s usually sellers gaming the review system. But it indicates your address might be circulating publicly. The USPS saw a surge of these phishing attempts during the last holiday season. Rule: if you get a delivery message with a link, don’t click. Go to the courier’s official tracking site or app with your tracking number to confirm any issue. Also notable: online ticket scams for concerts and events – buying resale tickets that turn out to be fake or already used. Always use official resale channels or meet in person at a safe spot to verify tickets (some arenas have verification). And pet scams : lots of reports of people paying hundreds for a puppy or kitten from a “breeder” they found online, only for the pet to be nonexistent. The scammer often asks for upfront transport fees or insurance via wire transfer. Red flag: if you can’t see the pet in person or via live video before paying, don’t pay. Finally, marketplace platforms themselves are trying to combat scams. Facebook now warns users if someone suggests shipping an item or asks for payment outside their checkout. eBay’s buyer protection can reimburse you if you get scammed – but only if you followed their rules (e.g. no outside deals). And the BBB launched a Scam Tracker where you can lookup/report scam listings. Despite these efforts, the volume of online commerce means scammers will keep fishing for victims. Stay vigilant about those warning signs – unusual payment methods, deals that are too good, sellers/buyers who won’t meet or want to move fast – and you’ll avoid most of the traps.
Featured Tool: Aura’s Safe Shopping & Credit Monitoring
Online shopping scams can involve more than just losing a payment – sometimes you enter your credit card on a sketchy site and the scammers then have your card details to misuse. This is where Aura comes in handy once more. Aura’s identity protection services include credit card and bank account monitoring , alerting you if your card numbers or personal info pop up on the dark web (meaning a breach or leak). If you accidentally buy on a fraudulent site that was just harvesting card info, Aura might alert you that your card is now being sold or used illegitimately, so you can freeze it. Additionally, Aura offers a feature called Safe Browsing (via their VPN and antivirus) that can sometimes flag known phishing or scam websites in real time, effectively warning you “This site is not secure” before you enter details. It’s like a second layer of defense if something slips past your judgment. Aura’s password manager also lets you create unique passwords for every shopping site – so if one retail site is breached, your other accounts stay safe. And for marketplace dealings, while Aura can’t vet a Craigslist seller for you, having their credit monitoring and identity theft insurance (up to $1M coverage) is a nice safety net. For instance, if a scam leads to identity theft (not uncommon – some fake sellers might ask for extra personal info claiming it’s for a “credit check” on a rental, etc.), Aura’s team can help you navigate recovery and cover certain expenses. In short, if you’re a frequent online shopper, Aura can give you peace of mind that someone’s watching your back in the digital bazaar. We’ve mentioned Aura a few times across newsletters because scams often overlap (phishing, identity theft, etc.), and a comprehensive solution like this is an effective umbrella of protection.
Affiliate Link Note: Yes, the Aura link above is an affiliate link, meaning we may get a small commission if you subscribe through it. We share it because we genuinely think tools like Aura can mitigate the damage from scams, especially for avid online shoppers, and help you bounce back faster if something goes awry.
Quick Takeaways
- Know who you’re dealing with: On marketplaces, examine profiles and insist on meeting or using official channels . Scammers hide behind new or anonymous accounts. A legit buyer/seller won’t mind transparency.
- No upfront deposits to strangers: If someone asks for a partial payment to “hold” an item or for shipping before you’ve seen the goods, it’s likely a scam. Pay at the time of exchange whenever possible.
- Use secure payment methods: For goods shipped, credit cards or PayPal Goods & Services offer protection. Avoid irreversible payments (wires, gift cards). And never trust “payment confirmation” emails blindly – log in to verify money is in your account.
- Be wary of off-platform moves: Whether shopping or dating or anything – if someone tries to take you out of a site’s protected environment (to avoid fees or whatever excuse), you lose safety nets. It’s often a trap.
- Spot the fakes: Scrutinize websites before buying. Look for proper contact info and read some reviews. If a site or seller has zero footprint outside their own claims, that’s a red flag. When in doubt, choose established retailers or local transactions where you can verify the item.
Happy shopping and selling! Online marketplaces have created wonderful opportunities – just remember you have the power to say “no” or walk away if something smells phishy. Trust your gut. By staying scam wise, you can snag great deals and keep your hard-earned money safe.