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Marketplace Scams

7 minute read

Buying or selling on Facebook Marketplace, OfferUp, or Craigslist? Here's how to avoid the most common tricks.

Buying and selling on Facebook Marketplace, OfferUp, Craigslist, and similar platforms can be great. You can find real deals and sell things you no longer need without giving a huge cut to a middleman. But these platforms are also full of scammers who have refined their tactics over years of practice.

The scams work because these transactions happen between strangers, often with no buyer protection, no verified identities, and no recourse if something goes wrong. Whether you’re buying or selling, you need to know what to watch for.

I’ll walk you through the most common scams on both sides of the transaction, show you real examples of how they play out, and give you practical rules to keep your money safe.

Scams That Target Buyers

The Too-Good-to-Be-True Listing

MacBook Pro M3, 16GB RAM, 512GB - $350 OBO

“Selling my MacBook. Works perfectly, just upgraded. Cash only, first come first served.”

The price is well below market value. The photos look great – maybe too professional. If you message the seller, they’re eager to close the deal quickly and may have an excuse for why you can’t meet in person. “I’m out of town for work but I can ship it.” “My husband can meet you but he can only do it today.”

The item either doesn’t exist, isn’t as described, or is stolen.

The Fake Shipping Scam

Seller: “I can ship it to you! Just send me $400 through Zelle and I’ll have it in the mail today. I’ll send you the tracking number.”

You send the money. You get a tracking number that either doesn’t work, shows an empty envelope was shipped, or tracks a package going to a completely different address. The seller stops responding.

The Counterfeit Item

You buy a pair of “Nike Air Jordan 1 Retro High OG” shoes for $120. They arrive and look decent in photos. In person, the stitching is wrong, the materials feel cheap, and the box has no authentication label. They’re fakes worth about $15.

This is especially common for electronics, designer clothing, shoes, handbags, and cosmetics.

The Bait and Switch

The listing shows a pristine iPhone 15 Pro. You meet the seller, who hands you a phone that looks right. You pay, go home, and realize it’s a different model, has a cracked back hidden by the case, or has an iCloud lock that makes it unusable.

Scams That Target Sellers

The Fake Payment Screenshot

Buyer: “Hey, I just sent the payment through Zelle! Here’s the confirmation.” [Sends screenshot]

The screenshot shows a Zelle transfer to you for $500. It looks exactly like a real Zelle confirmation. But it’s fabricated. No money was actually sent. The buyer asks you to hand over the item based on the screenshot.

This is one of the most common marketplace scams right now. Fake Zelle, Venmo, Cash App, and PayPal screenshots are trivially easy to create.

The Overpayment Scam

Buyer: “I accidentally sent you $800 instead of $500. Can you refund me the extra $300? Here’s where to send it.”

There was no $800 payment. Or the buyer used a stolen credit card or fraudulent check that will eventually bounce. If you “refund” the $300, you’ve lost real money based on a payment that never existed or will be reversed.

The Fake Cashier’s Check

A buyer for your used car sends a cashier’s check for $8,000. Your bank deposits it and the funds appear in your account. You hand over the car and the title. Two weeks later, the bank discovers the check was counterfeit and removes the $8,000 from your account. You’ve lost the car and the money.

Banks are required to make funds available within a few days, but that doesn’t mean the check has actually cleared. It can take weeks for a fraudulent check to be detected.

The “Verification Code” Scam

Buyer: “Before I come pick it up, I just want to make sure you’re a real person. Google is going to send you a code – can you read it to me?”

They’re using your phone number to set up a Google Voice account or verify a fraudulent account somewhere. That “verification code” gives them access to create accounts in your name.

The Switch During Meetup

You’re selling an iPhone. The buyer asks to see it, inspects it, and hands it back. Except they handed back a different phone – an older model or a non-working one – and pocketed yours. In the moment, the phones look similar enough that you don’t notice until later.

Red Flags for Buyers

Price is significantly below market value. If a listing is 40-60% below what you’d pay elsewhere, there’s usually a reason. Check prices on the same platform and on eBay or Amazon for comparison.

Seller insists on shipping instead of meeting. Local marketplace platforms are designed for local transactions. A seller who can’t meet in person and wants you to send money electronically is a major red flag.

Seller insists on payment apps with no buyer protection. Zelle, Venmo (friends and family), Cash App, and wire transfers offer no buyer protection. If you send money and don’t get the item, you have no recourse.

Stock photos or images from other listings. Do a reverse image search on the listing photos. If the same photos appear in other listings across the internet, the seller likely doesn’t have the item.

Brand new account with no reviews or history. Not conclusive by itself, but combined with other red flags, it’s a warning.

Seller avoids answering specific questions. Asking about serial numbers, specific details, or additional photos and getting vague responses or pushback.

Red Flags for Sellers

Buyer offers to pay more than asking price. Nobody does this legitimately. It’s always the setup for an overpayment scam.

Buyer sends payment “confirmation” before you’ve given payment details. If you haven’t shared your Zelle email or Venmo handle and someone sends you a “payment confirmation,” it’s fake.

Buyer wants to send a check. Especially for high-value items like cars or furniture. Checks can be faked and take weeks to bounce.

Buyer asks you to read back a verification code. There’s no legitimate reason for a buyer to need a code that was sent to your phone.

Buyer sends someone else to pick up. “My friend/assistant/driver will come pick it up.” This creates distance between the scammer and the transaction.

Excessive eagerness without negotiating. Real buyers usually ask questions and negotiate price. A buyer who immediately agrees to your asking price and wants to pay and pick up right away might be running a scam.

How This Scam Has Evolved with AI

AI has made marketplace scams more convincing in several ways.

AI-generated product photos. Scammers can create realistic images of items they don’t actually have. A listing for a luxury handbag or high-end electronics might feature AI-generated photos that don’t appear anywhere else on the internet, defeating reverse image searches.

AI-generated listings at scale. Scammers use AI to write dozens of unique, well-written listings with varied descriptions, making it harder for platforms to detect patterns and remove them.

AI-powered chat. That responsive, friendly seller who answers your questions quickly and naturally? It might be an AI chatbot managing dozens of scam conversations simultaneously. The messages sound human, they adapt to your questions, and they build just enough trust to get you to send money.

AI-generated buyer profiles. Fake profiles with AI-generated headshots, realistic bios, and even AI-written reviews on other platforms make it harder to spot fraudulent accounts.

How to Protect Yourself

The golden rule of marketplace transactions: meet in person, inspect the item, and use cash or a payment method with buyer protection.

Safe Buying Practices

  1. Meet in a public, well-lit location. Many police stations offer designated “safe exchange zones” with cameras. Use them.
  2. Inspect the item thoroughly before paying. Turn on electronics, check for damage, verify the serial number matches.
  3. For electronics, check iCloud/Google lock status before buying. An iCloud-locked iPhone is a paperweight.
  4. Pay in cash for in-person transactions. Cash is simple, immediate, and leaves no personal financial information exposed.
  5. If buying online, use platforms with buyer protection. eBay, Mercari, and Facebook Marketplace (with shipping) offer some protection. Zelle and Venmo (friends and family) offer none.
  6. Reverse image search listing photos. Use Google Images or TinEye to check if photos are stolen from other listings.
  7. If the deal seems too good to be true, it is. Walk away.

Safe Selling Practices

  1. Accept cash for in-person transactions. It’s the safest method.
  2. If accepting digital payment, verify the money is in your account before handing over the item. Open your banking app yourself. Don’t rely on screenshots from the buyer.
  3. Never accept checks for marketplace transactions unless you’re willing to wait weeks for them to fully clear.
  4. Never read back verification codes to anyone.
  5. Keep the item in your hands until payment is confirmed. Don’t let a buyer “test” an item and walk away with it.
  6. Bring a friend to high-value meetups.
  7. Don’t share personal details beyond what’s needed for the transaction. Use the platform’s messaging system rather than giving out your phone number.

What to Do If You’ve Been Scammed

  1. Report to the platform. Facebook Marketplace, OfferUp, and Craigslist all have reporting mechanisms. This helps get the scammer’s account removed.
  2. Contact your bank or payment provider. If you paid through a credit card or a platform with buyer protection, file a dispute. If you used Zelle or Venmo (friends and family), contact them, but recovery is unlikely.
  3. File a police report. Especially for high-value items. You’ll need this for insurance claims and some payment disputes.
  4. Report to the FTC: ReportFraud.ftc.gov
  5. Report to the FBI’s IC3 for internet fraud: ic3.gov

For complete recovery steps: I Think I Was Scammed

Quick Summary

  • Meet in person in a public place – police station safe exchange zones are ideal

  • Cash is the safest payment method for in-person transactions

  • Never trust payment screenshots – verify money is in your account yourself

  • If the price seems too good to be true, it is

  • Never accept checks or overpayments from buyers

  • Never share verification codes with anyone

  • Inspect items thoroughly before paying, especially electronics