Clemente Varas is an investment educator in the real estate sector. Scams are an unfortunate part of society today, and they are seemingly everywhere. In the following article, Clemente Varas discusses how to avoid scams on Facebook Marketplace.
One scroll through Facebook Marketplace and you can see why the e-commerce behemoth functions as something close to the world’s most bizarre online bazaar.
There are free cardboard boxes available, but also a $130,000 2012 Lamborghini Gallardo. There’s a cabinet from Target being resold next to a $450,000 2020 Cessna 172s. There are townhouses for rent, porch swings, vintage dining tables, a $20 sewing machine, and a collection of Dallas Cowboys memorabilia for $150. And all of it is available today for one lucky buyer.
But Facebook Marketplace has its fair share of unlucky buyers, too. Clemente Varas says Facebook Marketplace has an estimated 1 billion monthly visitors. Worldwide, Facebook Marketplace can be accessed at over 200 locations and a single advertisement on the site reaches up to 562 million people, and the United States alone has over 190 million Facebook Marketplace users.
Statistics
Clemente Varas says that fraud has grown on the site since the marketplace launched in 2016.
According to one survey, about 270 million Facebook Marketplace accounts could be fake. That’s around 13% to 16% of one account.
And a whopping 1 out of 6 users of Facebook Marketplace says they’ve been scammed at least once. In the last half of 2021, there was a 16% growth in Facebook Marketplace scams.
Those are scary figures, but there are ways for Facebook Marketplace users to buy and sell safely on the site. Below, Clemente Varas reports how to spot a scam right away.
Communicating Away from the Facebook Platform
Typically, buyers and sellers on Facebook Marketplace will conduct their financial transactions and conversation using Facebook chat. Facebook has a well-regarded “Purchase Protection” policy that covers sales made through Facebook Checkout or PayPal according to Clemente Varas.
What they don’t cover are payments through other means that some scammers rely on to effectively steal cash without providing an item or, even worse, hack into personal and financial information.
If a seller wants payment through Venmo or a wire transfer, something is fishy. Stick to the official, approved methods says Clemente Varas to avoid scams.
Selling Broken Items
It’s an old scam, but it’s one of the most successful. There are sellers out there who regularly list items they know do not work or do not do what they are advertised for says Clemente Varas.
This is a common scam with second-hand technology and electronics, such as computers, phones, cameras, and televisions. Before making the deal, be sure to test out all electronics thoroughly.
Turn them on and off and test different functions. If a seller is pushing you to decide quickly, they know that a buyer is on to them says Clemente Varas.
Paying With Gift Cards
Clemente Varas says this scam is attractive to buyers who have a bunch of unused gift cards lying around the house. A seller offers to be paid with a gift card, but when they receive the card, they don’t send the product.
Gift cards are usually nameless, so they cannot be linked to a specific bank account or even an individual. Never trust a seller who wants a gift card as a form of payment. Clemente Varas says this scam is not limited just to Facebook Marketplace either, so beware!
The Seller has a Fake Account
As is the case on Facebook’s traditional social network, numerous Facebook Marketplace accounts are fake, with users claiming to be someone they are not.
This is often done to store credit cards that are stolen or skim personal information from actual users. If a seller seems suspicious (or even if they don’t) check their generally Facebook page to see if everything seems legit.
Do they have conversations with actual friends? Do they have multiple images that do not look like stock art? Do they seem to be the age they claim to be?
If there is uncertainty, it's best to err on the side of caution and avoid any type of financial transition with someone who raises even a small red flag says Clemente Varas.
Speaking of Red Flags
There are
numerous other hints that there is a Facebook Marketplace scam underway says Clemente Varas.
Commonly, these include a seller who is selling something that seems too good to be true for its price. These are usually high-ticket items with very, very low prices. Sellers who are scammers often refuse to meet buyers in person. Buyers and sellers who are scamming may ask for a phone number or don’t have profile photos.
One big red flag is a buyer who wants to overpay for a product or “accidentally” overpays. This is most definitely a scam. They tack on extra cash for faster shipping or just to cover shipping and then demand a refund for the higher price.
What To Do if There’s a Scam
- Contact local law enforcement and then contact Facebook about the specific situation.
- Review the terms of Facebook Purchase Protection.
- Use the “Report the Seller” function.
- Contact the Internet Crime Complaint Center and the Federal Trade Commission if money is lost.
- Get in touch with your bank to block access to your account.
