Marketplace Frauds: Common Scams on Facebook, eBay, and Craigslist

Online marketplaces have transformed the way we buy and sell. Platforms like Facebook Marketplace, eBay, and Craigslist connect millions of buyers and sellers every day. You can find everything from second-hand furniture to rare collectibles, often at competitive prices. However, with convenience comes risk. Scammers exploit these platforms, targeting unsuspecting users with clever fraud schemes designed to steal money, goods, or personal information.

In this comprehensive guide, we’ll dive deep into the world of marketplace frauds, exploring the most common scams on Facebook Marketplace, eBay, and Craigslist. We’ll also highlight real-life examples, red flags, and actionable safety tips so you can shop—and sell—with confidence.

Why Marketplace Scams Are on the Rise

The growth of online marketplaces has been explosive:

• Facebook Marketplace now boasts hundreds of millions of users worldwide.

• eBay facilitates billions of dollars in transactions annually.

• Craigslist remains a go-to platform for local buying, selling, and trading.

But the sheer size of these platforms makes them prime targets for fraudsters. Scammers thrive on volume, anonymity, and human trust. They often exploit loopholes, lack of buyer protection, or emotional triggers like urgency and excitement.

Some key factors behind the rise of marketplace scams include:

1. Low entry barriers – Anyone can create a fake profile or listing in minutes.

2. Global reach – Fraudsters can target victims across countries without physical presence.

3. Payment vulnerabilities – Many transactions happen outside official payment systems.

4. Trust-based interactions – Buyers and sellers often rely on good faith, which scammers abuse.

Part 1: Facebook Marketplace Scams

Launched in 2016, Facebook Marketplace has quickly grown into one of the most popular places to buy and sell locally. Unfortunately, it’s also home to some of the most widespread online fraud tactics.

1. Fake Product Listings

Scammers post attractive items—designer handbags, iPhones, or gaming consoles—at too-good-to-be-true prices. Once buyers pay, the scammer vanishes.

Red flags:

• Extremely low prices compared to market value.

• Stock images instead of real photos.

• Seller pushes for upfront payment before meeting.

Example: A buyer finds a “brand new iPhone 14 for $200.” After sending money via PayPal Friends & Family, the seller disappears.

2. Overpayment Scams

In this scam, a buyer “accidentally” sends more money than the agreed amount (via PayPal, Venmo, or Zelle). They then request the seller to refund the difference. Later, the payment is reversed due to fraud, leaving the seller out of pocket.

How it works:

• Item listed at $100.

• Buyer pays $500 and asks for $400 back.

• The initial payment bounces, but the seller has already sent $400.

3. Fake Payment Confirmations

Scammers send fake PayPal or Zelle emails claiming payment has been made. Sellers ship the product, only to realize the payment never arrived.

Tip: Always verify payment inside the payment platform itself—never trust screenshots or emails.

4. Vehicle Scams

Cars, motorcycles, and boats are among the most common high-ticket scams on Facebook Marketplace. Fraudsters list vehicles at below-market prices and claim they need a “quick sale” due to deployment, divorce, or relocation.

Red flags:

• Seller insists on shipping the vehicle.

• Buyer is pressured to use gift cards or wire transfers.

• Story includes urgency or emotional appeal.

5. Rental and Housing Scams

Scammers post fake rental listings, collecting deposits or application fees from multiple victims.

Example: A “2-bedroom apartment in New York for $900/month.” Once deposits are sent, the scammer blocks all communication.

6. Phishing Scams via Marketplace Messaging

Fraudsters use Facebook Messenger to send links that appear legitimate but steal login credentials or install malware.

Tip: Never click on external links from buyers or sellers you don’t know.

7. Counterfeit Goods

Designer handbags, sneakers, or electronics are often counterfeit replicas sold as authentic. While some buyers suspect this, others are misled into paying premium prices.

Part 2: eBay Scams

As one of the oldest online marketplaces, eBay has strong buyer and seller protections. But scammers are still creative in bypassing safeguards.

1. The Non-Delivery Scam

Buyers pay for an item, but it never arrives. Scammers may provide fake tracking numbers to buy time.

Example: Buyer orders an Xbox but receives a tracking code for a package delivered elsewhere.

2. Empty Box Scam

Sellers ship empty boxes while claiming the product was included.

Example: A laptop listing arrives as just the box. The seller insists the buyer is lying.

3. Switcheroo Fraud

A dishonest buyer purchases an item, then claims it’s “not as described” and returns a different, often damaged item. Sellers lose both product and money.

4. Overpayment & Refund Tricks

Buyers overpay and request refunds, often using stolen credit cards. The refund goes through, but the initial payment later gets reversed.

5. Phishing Emails Pretending to Be eBay

Scammers send emails pretending to be eBay, asking for login credentials. Unsuspecting sellers may hand over account access.

6. Fake Escrow Services

Scammers lure buyers off eBay, insisting they use a “safe escrow service.” These fake escrow sites are controlled by fraudsters.

7. Feedback Manipulation

Some scammers create fake buyer accounts to boost their credibility. Once trusted, they run large-scale fraud.

Part 3: Craigslist Scams

Craigslist operates differently: no payment protection, minimal verification, and a high reliance on face-to-face trust. It’s a scammer’s paradise if you’re not careful.

1. Fake Checks & Money Orders

Buyers send counterfeit checks that clear initially but later bounce. Sellers who ship items before confirmation lose both item and money.

2. Advance Fee Fraud

Scammers pose as buyers or renters, asking victims to pay “application fees,” “processing fees,” or “delivery costs” upfront.

3. Job Offer Scams

Craigslist job postings can be traps, asking applicants to pay for training materials or giving them fake checks to “buy equipment.”

4. Rental Fraud

Fake landlords list properties and request deposits from multiple victims. Often, they don’t even own the property.

5. Romance/Companionship Scams

Some scammers use Craigslist personals or “friendship” ads to lure victims into fake relationships that eventually lead to money requests.

6. Ticket Scams

Event tickets sold on Craigslist are often counterfeit or already used.

7. Buyer-to-Seller Scams

Scammers pose as buyers, “accidentally” overpay, and ask for refunds (similar to Facebook overpayment scams).

Red Flags That Apply Across All Platforms

• Prices far below market value.

• Urgency and pressure tactics (“act fast or lose it”).

• Requests for unusual payment methods (gift cards, wire transfers, crypto).

• Sellers refusing to meet in person or allow inspection.

• Buyers pushing for transactions outside official channels.

• Poor grammar, vague responses, or evasiveness in communication.

How to Protect Yourself

For Buyers

1. Verify the Seller – Check reviews, ratings, and profile activity.

2. Meet in Safe Locations – Prefer police station parking lots or well-lit public places.

3. Use Secure Payments – Pay through official marketplace systems (eBay, Facebook Pay).

4. Avoid Advance Payments – Never pay before receiving the item.

5. Inspect Before Paying – Especially for vehicles and electronics.

For Sellers

1. Don’t Ship Without Confirmed Payment – Verify funds have cleared.

2. Avoid Overpayment Refunds – Insist on correct payment.

3. Use Trusted Payment Systems – Don’t accept wire transfers or gift cards.

4. Document Everything – Keep receipts, photos, and communication records.

5. Trust Your Instincts – If something feels wrong, it probably is.

Real-Life Examples of Marketplace Fraud

1. The $1,200 Sofa Scam (Facebook Marketplace) – A woman in Texas paid for a luxury sectional sofa. The seller disappeared after receiving payment. The listing later reappeared under another profile.

2. The eBay Camera Switcheroo – A seller shipped a genuine Canon camera. The buyer claimed it was defective and returned a broken knockoff. eBay sided with the buyer, leaving the seller with a loss.

3. Craigslist Apartment Deposit Scam – Several families in New York paid deposits for the same apartment listed on Craigslist. None received keys; the scammer vanished with thousands in deposits.

The Future of Marketplace Security

Platforms are investing in AI and fraud detection to combat scams:

• Facebook uses machine learning to detect suspicious listings.

• eBay employs advanced verification systems and dispute resolution.

• Craigslist remains vulnerable due to its decentralized, low-verification model.

Still, no system is perfect. The best defense is awareness and caution.

Final Thoughts

Marketplaces like Facebook, eBay, and Craigslist have revolutionized how we buy and sell. But convenience comes with risk. Fraudsters prey on trust, urgency, and opportunity. By understanding the most common scams, recognizing red flags, and practicing safe buying and selling habits, you can significantly reduce your chances of becoming a victim.

Online marketplaces are powerful tools, but remember: if a deal looks too good to be true, it probably is.

Disclaimer

This article is intended for informational purposes only. While every effort has been made to ensure accuracy, scams and fraud tactics are constantly evolving. Readers should exercise caution and conduct their own research before engaging in online transactions. The author and publisher are not responsible for any financial loss, damage, or consequences resulting from marketplace transactions.