Facebook Marketplace, once a convenient platform for decluttering your home or scoring a great deal, has become a breeding ground for online scams. While the vast selection and ease of use remain attractive, a surge in fraudulent activity is tarnishing the user experience.
Buyers report encountering a barrage of issues: counterfeit listings, phony payment confirmations, and products that don't match the description. Sellers face similar challenges, falling victim to fake buyers and deceptive payment tactics. The Better Business Bureau's Scam Tracker overflows with complaints from users who lost money due to Marketplace fraud.
Launched in 2016, Facebook Marketplace has morphed into a global online bazaar. While convenient, experts warn that the quality has suffered. Financial institutions and online safety advocates point to a significant rise in scams. TSB, a Scottish bank, found a staggering 60% of purchase fraud in 2023 originated on Facebook Marketplace – a figure that doubled in just one year.
Meta, Facebook's parent company, claims to invest heavily in fraud detection tools and user education. However, many remain unconvinced. Peter Panduro, a Swedish software engineer, used Marketplace for years but has switched to a competitor with stricter verification measures due to the overwhelming influx of suspicious messages and lack of local buyers.
Carol Johnson, a California mom, witnessed her son get scammed selling a laptop. The bank refused to intervene, leaving her frustrated with Facebook for fostering an environment "where fraud flourishes."
Meta defends Marketplace, highlighting its free service connecting people with local goods. They emphasize review teams, detection tools, and user safety resources. However, they remain opaque about user numbers and total listings, making it difficult to assess the platform's true scope and the scale of the problem.
Initially, Marketplace transactions were local and often cash-based. The introduction of shipping options and online payments through platforms like PayPal and Meta Pay (formerly Facebook Pay) coincided with a rise in remote scams. Experts point to a surge in bot activity and sophisticated schemes targeting high-demand items like electronics and vehicle parts.
Bruce Anthony, a retiree from Washington, fell victim to a classic online pet scam. Lured by a suspiciously low price for a rare Siamese kitten, he sent a $100 Amazon gift card for "rehoming fees." Upon arrival at the pickup address, he discovered he'd been duped. Neither Meta nor Amazon offered a refund.
Hira Saeed, an Austin entrepreneur, encountered a different kind of scam. After selling a bed and mattress, the "buyers" showed her a fabricated payment screenshot and disappeared with her belongings.
Despite the challenges, some users navigate Marketplace successfully. Morgan Johnson, a healthcare specialist, strategically avoided red flags like new accounts, missing photos, and email communication requests while selling furniture before a move.
How to Survive the
Facebook Marketplace Jungle
Secure Payments: Opt for credit cards with buyer protection and traceable transactions. Avoid gift cards – they offer no recourse in case of fraud.
Verify Profiles: Scrutinize seller/buyer profiles. Look for activity history, transaction reviews, and established accounts.
Public Places: Insist on in-person exchanges in well-lit, public locations with security cameras.
Scrutinize Listings: Be wary of unrealistically low prices, vague descriptions, or high-pressure tactics.
Deposits with Caution: For expensive items, verify authenticity through in-person meetings, receipt checks, or video calls before sending deposits.
Inspect Before You Invest: Thoroughly examine the item's condition and functionality before handing over payment. Check packaging for signs of tampering.
