Online purchase scams often happen on direct seller-to-buyer sites like eBay and Craigslist. If you're the seller in this scam, you might agree to sell your item outside the site's routine checkout process and opt to receive payment by cashier's check or money order only to have the buyer run a fake check/money order scam.
If you're the buyer, you'll purchase an item or service only to never receive what was ordered and paid for.
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Use Secure Payment Methods
When purchasing online, use secure, traceable payment methods, like credit cards or reputable third-party payment processors (e.g., PayPal). Avoid using cashier’s checks, money orders, or wire transfers, as these are difficult to track and often non-refundable in the event of fraud.
Verify Buyer and Seller Profiles
If you’re dealing with a seller on platforms like eBay, Craigslist, or Facebook Marketplace, review their profile, ratings, and reviews. Be wary of accounts with few reviews or incomplete profiles. For sellers, scrutinize the buyer’s profile and verify their contact information before agreeing to a transaction.
Stick to the Platform’s Payment and Messaging System
Fraudsters may ask you to complete transactions outside the platform’s checkout or messaging systems, often offering incentives or discounts. Avoid this, as most platforms provide protections for purchases made within their system, and you may lose these protections by stepping outside.
Beware of Overpayment Scams
Sellers should be cautious if a buyer offers to overpay with a cashier’s check or money order and asks for a refund of the difference. This is often a tactic used in check fraud scams, where the check eventually bounces, and the seller is responsible for the entire amount.
Confirm Receipt of Goods or Services
For buyers, always inspect items upon receipt to ensure they match the description. If you’re buying online, confirm that you’re purchasing from a legitimate source, and, where possible, opt for payment upon delivery or escrow services to safeguard your funds until you verify the purchase.
Report Suspicious Listings and Transactions
If you encounter an online purchase scam, report it to the platform, the Federal Trade Commission (FTC), and your state’s consumer protection agency. Most platforms take down reported scams to help others avoid falling victim to similar schemes.
Federal Trade Commission (FTC) Online Shopping Scams Guide
Offers guidance on how to identify online purchase scams, as well as tips for safely buying and selling on popular online marketplaces.
Better Business Bureau (BBB) Scam Tracker
Allows users to view and report recent online shopping scams. The database of reported scams can help consumers recognize fraud trends and avoid risky interactions.
AARP Fraud Watch Network
Provides educational articles, alerts, and resources to help seniors recognize and protect themselves against online purchase scams.
eBay’s Buyer and Seller Protection Program
eBay offers buyer and seller protections when transactions are completed within their platform. Their site also provides advice on identifying and avoiding scams.
National Cybersecurity Alliance (NCSA) Stay Safe Online
The NCSA offers security tips for consumers, covering online shopping, payment safety, and how to avoid fraud on digital platforms.
