Scams You Should Watch Out For on the Facebook Marketplace

Given Facebook’s role as the world’s largest social network, it makes sense that the site would also be home to a massive peer-to-peer marketplace. In just its first year, this feature has become so popular that, as of January 2019, there are now more than 300 million monthly active users on Facebook Marketplace alone. To some people, this may sound like a lot, but remember: that total doesn’t include all of the other versions of Facebook in use today. So while this is clearly a very popular feature and something we expect to see continue growing rapidly in the future, it’s still only a tiny fraction of overall users. That being said, any time you’re sending personal information over an internet connection – especially financial details – you should be careful about what you share and with whom. This goes double when dealing with someone you don’t know personally. Because when it comes to scammers and other third parties hoping to take advantage of people for their personal information or money...

Facebook Marketplace Scams to Watch Out For:

As we mentioned above, one of the main benefits of a site like Facebook Marketplace is that it allows you to interact with people you don’t know – or at least, people whose identity you can’t verify. 

The blessing is that it means you can buy and sell things you’d otherwise never be able to get a hold of. Whether it’s an expensive product you can’t find in your local area or a product that no one in your area needs, being able to interact with people outside of your normal social circle opens up a whole new world of opportunities.

The curse, of course, is that it also allows scammers and other dishonest third parties to contact you. And since you don’t know their identity or their intentions, you can never be 100% sure that you’re not dealing with one.

Repossession Fraud

Many people who have fallen behind on their car payments at one point or another have heard this one before. One of the most common scams on the Facebook Marketplace is repossession fraud. In this scam, you’ll get an offer to buy a car at a very low price. The seller will claim that they need to sell it quickly because they’re about to lose it to a repossession company. In many cases, the seller may even provide a fake car title or bill of sale to "prove" that they own the car and have the right to sell it. The problem with this is that it is a complete scam. No repossession company is going to sell you a car that they are legally required to take back and resell. They’re just going to take the car and give you nothing.

Fraudulent Computer/Phone Repair

Another common scam on the Facebook Marketplace is computer or phone repair fraud. If you’re selling a computer or phone, the scammer will offer to buy it and then say that they need to repair it for you before shipping it out. In some cases, the scammer may even promise to repair it for free. In this situation, the scammer doesn’t actually damage anything. Instead, they take your computer or phone and either sell it for parts or use it for their own personal use.

Shipping Company Fraud

Yet another type of common Facebook Marketplace scams are shipping company fraud. In this type of scam, someone will buy something from you and then ask that you ship it to another address. The scammer will offer to pay you for shipping using a money transfer service like PayPal. However, the address they give will be for a fake shipping company. When you go to ship the item, the shipping company will take the payment and refuse to provide you with a receipt or tracking information. This way, both you and the scammer can keep all of the money that you were expecting to go to the shipping company.

Identity Theft Fraud:

Finally, we have identity theft fraud. This is when someone offers to buy something from you and then asks for your personal information—like your social security number or bank account information—in payment. The seller may claim that they need this information to pay you with a money transfer service like Western Union. In reality, they’re using this information to steal your identity and drain your bank account.

Bottom line: be careful, but don’t be afraid.