Protect yourself from marketplace scams
What’s a marketplace scam?
Marketplace scams are common on online buying and selling platforms, like Facebook Marketplace or Kijiji. Whether you are selling or buying, these scams rely on the anonymous nature of online shopping and hard-to-trace payment methods, like wire transfers and cryptocurrency.
How marketplace scams work when you’re buying
A fake ad
A scammer sets up an online ad for a fake item, often with a lower-than-expected price. The scammer will refuse to meet in person to show you the item, claiming they are too busy or too far away.
“Seller” demands payment up front
When you get in touch to say that you’re interested in the item, the seller will insist on full payment up front, often adding on shipping costs.
You’ll make a hard-to-trace payment
Scammers often ask for payment in a hard-to-trace form, like a wire transfer, pre-loaded credit card, or cryptocurrency. Once you make the payment, the scammer will cut off contact. You won’t get the item you paid for and you won’t be able to get your money back.
How marketplace scams work when you’re selling
A scammer will offer to buy your item
A scammer contacts you about an item you’re selling online, offering to buy it without seeing it or meeting with you in person.
The scammer will ‘accidentally' overpay
In some cases, they send you more money than you asked for in your ad (also known as an overpayment scam). Then, the scammer will ask you to reimburse them for the extra amount. Since they likely overpaid with a stolen credit card or a transfer that won’t clear, they come out ahead.
Or, the scammer will insist payment is on the way
A scammer may also send you a PayPal or e-Transfer notification that says the payment is pending, and insist that it will clear by the time they receive the item. It won’t.
How to protect yourself from marketplace scams
- When buying online, compare the price to similar items. If it seems too good to be true, it could be a scam.
- Many online marketplace platforms require users to create a profile. Check out the history of the user you’re in contact with. Have they bought or sold items before?
- Do not deliver the item you're selling until you’re sure the payment is accurate and legitimate. Wait until you have confirmation that the payment has cleared.
- Beware of hard-to-trace payment methods like wire transfer, cryptocurrency, and pre-loaded credit cards.
- Whenever possible, conduct the final exchange in person, in a public place where you feel safe.
How to report an overpayment or marketplace scam
If you think that an overpayment or marketplace scam has compromised your banking or personal information, report the incident to Meridian by calling 1-866-592-2226.
Helpful resources