Don’t Fall for These Online Marketplace Scams

Online Marketplace Scams That Target Sellers

If you plan on selling things online, be on the lookout for these common types of fraud.

Overpayment Scams

This is when a buyer "accidentally" sends you too much money, then asks you to refund the difference before their initial payment is declined. As the seller, you've now lost the product you sold and the money you sent. Scammers might send you a check or money order or use a digital payment app.

Example

An interested buyer makes a purchase using a payment app, and it initially looks like the amount is in your account. The buyer then contacts you saying they accidentally overpaid. In some cases, you might even receive a fraudulent email from the payment platform confirming the overpayment.

You want to do the right thing, so you issue the refund—but then your bank discovers the initial payment is fraudulent and reverses the deposit. That could happen if the scammer linked a stolen credit card to the payment app.

Fake Payment Confirmation Scams

Someone might purchase something from you using a fraudulent payment method, then present a fake receipt confirming the purchase before taking off with the item. In the age of AI, it's getting easier for scam artists to forge realistic-looking receipts with little effort.

Example

A potential buyer expresses interest in something you're selling and wants to move quickly. They may even make a small down payment to hold the item. When it's time to confirm the order, they provide a screenshot of a receipt from their payment app confirming that the rest of the funds are on the way. You take it at face value and ship the item, but the payment never comes through.

Fake Business Account Upgrade Scams

Another common online marketplace scam is when a seller receives a fake text or email from a payment platform saying they need to upgrade to a business account to gain access to their funds. The scammer may even provide a fraudulent customer support phone number. The end goal is for the seller to pay a fee to "upgrade their account."

Example

After a buyer makes a purchase, you get a text from Venmo saying they won't release your funds until you upgrade to a business account. There's a sense of urgency to contact their customer support team to complete the purchase ASAP. In reality, the whole thing is staged.

Verification Code Scams

This happens when a buyer expresses interest in an item but wants to confirm the seller is a real person before they send money. The seller receives a verification code via text and is asked to confirm that code to verify they're not a bot. In reality, the "buyer" is actually creating a Google Voice number in the seller's name. The verification code is the last step they need to complete the process. They can then use the Google Voice account to scam others.

Example

After listing your item, a buyer reaches out to you and is excited to purchase it. The problem is that they've been scammed before and want to confirm you aren't a fraudster. They ask if you'd mind receiving a text verification code to give them peace of mind before they pay. You understand their concern and provide the code that was texted to you.

After that, they stop responding. You may not have lost money, but the scammer now has a new Google Voice number that's linked to your phone, which they may use to scam others. They might also want to break into your accounts and could use a similar approach in the future to get the multifactor authentication code that's keeping your account safe.

Online Marketplace Scams That Target Buyers

Sellers aren't the only ones who can get caught in online marketplace scams. Buyers also need to proceed with caution.

Fake Listing Scams

If you see a listing price that seems too good to be true, it may be a red flag. The seller might be using an online marketplace to list items they don't even have. All they've done is copied and pasted a listing from another online marketplace or created a new fake listing. The goal is to get you to buy before ghosting you.

Example

You're shopping for a birthday gift for your significant other and come across a discounted pair of designer sunglasses on Facebook Marketplace. The price is low and the photos show that they're in good condition. You reach out to the seller, send your payment and agree to meet up in person to pick up the glasses, but no one ever shows.

Counterfeit Goods Scams

This is exactly what it sounds like, and it can play out in a few different ways. That might be an online seller trying to get rid of a "designer" bag that's really a knock-off or a health or beauty product that isn't the real deal—and poses health or safety risks. The seller may include fake brand logos and customer reviews.

Example

You spot a just-right pair of high-end sneakers listed on an online marketplace. You scan the reviews, which are all positive, and the images look legit. The seller even says they're an authorized retailer. You go ahead and order the sneakers but receive a low-quality knock-off. You try to return them and get a refund, but the seller won't respond to your messages.

Bait-and-Switch Listing Scams

This happens when a buyer expresses interest in a reasonably priced popular item, only to be told that it's no longer available—but a different item is. This new item may be overpriced or of lower quality than the original. The seller then pushes that on the buyer and may even urge them to connect outside of the marketplace.

Example

You see a low-priced iPhone on eBay and inquire about buying it. The seller says they just ran out of that model, but they do have an older one for sale—or better yet, an even newer model that costs more than the original listing. The seller, who has a new profile, suggests texting privately to arrange the sale.

Advance Payment Scams

If you're in the market for an expensive or in-demand product, the seller may request an initial deposit to hold the item. While it may seem like a small amount compared to the full purchase price, the scammer can take your payment and simply stop responding to your messages.

Example

You find a new laptop from an online seller who seems credible. But this popular item is hard to find, and you feel lucky to have snagged one at such a fair price. You reach out to the seller, who asks for a deposit to hold the laptop. You go ahead and send payment, then never hear from the seller again.

Shipping Scams

After collecting payment from a legitimate buyer, a scammer can provide a phony tracking number or text fake shipping updates in an attempt to gather more personal information. Either way, the item never arrives.

Example

You find an item you love listed on an online marketplace. You're excited to purchase it and don't mind paying a little extra for shipping. But the days go by and you haven't received your package. You try using the tracking number the seller provided, but it's linked to the wrong address—and the seller isn't responding to your messages.

Why Online Marketplace Scams Are Increasing

In 2025, Americans lost roughly $148.2 billion in online scams and crimes, according to the Consumer Federation of America. That's a 25.8% increase from the year before. Here are some reasons why online marketplace scams may be on the rise.

• Artificial intelligence (AI): As AI becomes more sophisticated, it's easier for scammers to create fraudulent listings and fake customer reviews. That could catch the average consumer off-guard.
• Shift to P2P commerce: Many buyers use peer-to-peer platforms like Venmo, Zelle and PayPal. Scam artists can create phony receipts and phishing emails that appear to come from these platforms. They also open the door for overpayment scams.
• Impersonal vetting: According to McAfee research, 40% of consumers say they'd trust a lower-priced deal without verifying it first. That can be a real opportunity for fraudsters.

How Buyers and Sellers Can Avoid Online Marketplace Scams

A few protective measures can help you avoid some common scams. Here are a few best practices if you're buying or selling through an online marketplace.

• Watch out for brand-new accounts. A newly created account may be a red flag. That's because scammers often use false or stolen information to create them and gain trust before committing fraud. However, some scammers take over other people's accounts to appear less suspicious.
• Keep the conversation on the platform. Scammers may try to get you to communicate by texting, emailing or using a messenger app to avoid detection or get your contact information. Staying on the marketplace platform can provide an extra layer of protection.
• Use a trusted payment platform. Some P2P platforms offer purchase protection that can reimburse you for fraudulent purchases. Using these can be a first-line defense, but they don't cover everything.
• Meet in a secure place. For in-person exchanges, opt for a public space like a bank lobby or the parking lot of a local police station. If the other person refuses, the safest option is to walk away.
• Use an escrow service for high-priced items. Escrow accounts are common during home purchases, and it might be worth using one if you're buying or selling a luxury product or vehicle. An escrow service acts as an intermediary and holds the funds until the transaction is complete. Just be sure to properly vet the service beforehand.

What to Do if You've Been Scammed

Even if you do everything right, it may still be possible for a fraudster to break through. Below are five steps to take if you've been scammed.

1. Stop Communicating

Stop responding to the scammer immediately, even if they promise a refund or resolution. Continued communication can lead to further attempts to steal your personal information—and that could result in further financial losses. For example, they may send links or urge you to download attachments to fix the problem, which could put you at further risk.

2. Gather All Relevant Details

Save everything, including screenshots of:

• Messages and emails
• Listings
• Payment confirmations
• Receipts
• Shipping information

You can also document usernames, profile URLs, phone numbers, email addresses, transaction IDs and important dates. Keeping thorough records can help when reporting the scam or disputing fraudulent charges.

3. Report to the Marketplace

Reach out to the online marketplace and report the fraudulent buyer, seller or listing. Most marketplaces have built-in reporting tools. Be sure to follow their instructions for reporting scams and requesting assistance if necessary. That can help remove fraudulent accounts and protect other users.

4. Report to Federal and Local Authorities

You can report the fraud to the Federal Trade Commission (FTC) through IdentityTheft.gov. That can provide a personalized recovery plan. You might also file a police report if threats were made, money was lost or an in-person transaction occurred. You can report the fraud to the FBI's Internet Crime Complaint Center (IC3) as well if you suspect that your personal information was used to commit online fraud.

Reporting fraud doesn't guarantee that you'll recover your losses, but it could help. For example, you might include a copy of a police report if you're disputing fraudulent charges. It can also help authorities investigate fraud trends.

5. Secure Your Online Identity

You'll want to change your passwords for any affected accounts and enable multifactor authentication if possible. That can provide an extra barrier against scammers. If your personal information was exposed, you have the right to place a fraud alert or credit freeze. Both options are free.

• Placing a fraud alert: Advises creditors to verify your identity before approving a new credit account in your name.
• Freezing your credit: Limits access to your credit report, which can block scammers from opening fraudulent accounts.

The Bottom Line

Online marketplace scams can happen whether you're a buyer or a seller, but being aware of the red flags could help you avoid them. If something feels off—or you come across an offer that feels too good to be true—do your research to ensure everything is on the up and up. If you do fall victim to a scam, what matters most is acting fast and taking steps to protect your information going forward.

Identity theft can affect your credit score and your ability to qualify for favorable lending rates and terms. This is why it's smart to check your credit report at least once a year. You can get your credit report and FICO^® Score^{☉ Θ} for free from Experian.