Overview of SWIFT CSCF v2025
As part of its Customer Security Programme (CSP), SWIFT has updated its security requirements for clients and released the Customer...
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Online marketplaces like Facebook Marketplace and eBay have revolutionised the way we buy and sell goods. In the UK, eBay remains one of the most popular platforms, with over 20 million active users, while Facebook Marketplace has seen exponential growth, particularly for local transactions.(Source: eBay UK, public reports)
According to TSB’s calculations, an estimated £60 million may have been lost by customers of all banks through Facebook Marketplace in 2023 alone – equivalent to £160,000 being lost every day on the platform. (Source: TSB Bank, 2023) Additionally, UK Finance reported that purchase scams, where goods are paid for but never received, were the most common type of authorised push payment (APP) fraud in 2023, accounting for 57% of all cases.(Source: UK Finance, Fraud: The Facts 2023) These figures highlight the growing threat of marketplace scams. Understanding common scams, learning how to avoid them, and knowing how to protect yourself could save you from significant financial and emotional distress.
1. Fake Listings
Fraudsters create listings for high-value items, such as electronics or vehicles, at suspiciously low prices. Once payment is made, the item either never arrives or is significantly different from what was advertised.
2. Overpayment Scams
A buyer sends a cheque or payment for more than the agreed price and asks the seller to refund the difference. The original payment later bounces, leaving the seller out of pocket.
3. Phishing Scams
Scammers pose as legitimate buyers or sellers to trick users into sharing personal information, such as bank details or login credentials.
4. Fake Escrow Services
Fraudsters suggest using a third-party escrow service, such as a fake version of Escrow.com, PayPal Protection Services, or Trade Assurance Hub, to “secure” the transaction. The service is fake, and once the buyer sends payment or the seller ships the goods, the fraudster disappears, leaving the victim with neither the money nor the item.
5. Non-Delivery Scams
A seller accepts payment but never sends the item, often disappearing once the transaction is complete.
6. Counterfeit Goods
Buyers receive fake or imitation products, particularly common with branded items like clothing, electronics, or cosmetics.
1. Research the Seller or Buyer
Check their profile for reviews, ratings, and transaction history. Be wary of new accounts with little to no activity.
2. Use Secure Payment Methods
Avoid cash transactions, Bank Transfers, or untraceable payment methods like gift cards. Use platforms’ built-in payment systems or trusted services like PayPal. If what you’re buying costs over £100, and you are paying the business direct (rather than via Paypal), it’s best to pay by credit card as it will give you instant legal protection under Section 75 of the Consumer Credit Act. This means you can ask your credit card company for a refund if the supplier goes bust, goods are faulty or don’t arrive. Paying by debit card offers you protection under the chargeback scheme.
3. Meet in Person for Local Transactions
For high-value items, arrange to meet in a public, well-lit area. Inspect the item thoroughly before handing over any money.
4. Be Sceptical of Too-Good-to-Be-True Deals
If a deal seems unrealistically good, it probably is. Trust your instincts and walk away.
5. Verify Escrow Services
If using an escrow service, ensure it is legitimate and independently verified. Avoid using services suggested by the other party.
6. Avoid Sharing Personal Information
Never share sensitive details like your bank account information, Social Security number, or passwords.
7. Use Platform Messaging Systems
Keep all communication within the marketplace’s official messaging system. This provides a record of your interactions and helps the platform investigate if something goes wrong.
For Individuals:
2. Research the Seller or Buyer
Check the other party’s profile for reviews, ratings, and transaction history. Be cautious of new accounts with little to no activity or feedback.
2. Use Secure Payment Methods
Avoid cash transactions, Bank Transfers, or untraceable methods like gift cards. Use the platform’s built-in payment system or trusted services like PayPal, which offer buyer and seller protection.
3. Meet in Person for Local Transactions
For high-value items, arrange to meet in a safe, public location. Inspect the item thoroughly before handing over any money, and avoid paying in advance.
4. Be Sceptical of Too-Good-to-Be-True Deals
If a deal seems unrealistically good, it’s likely a scam. Trust your instincts and walk away from offers that feel suspicious.
5, Avoid Sharing Personal Information
Never share sensitive details like your bank account information, passwords, or one-time verification codes. Keep all communication within the platform’s official messaging system.
For Organisations:
1. Implement Advanced Fraud Detection Systems
Use artificial intelligence (AI) and machine learning tools to monitor transactions in real time. These systems can flag suspicious activity, such as unusually large purchases, mismatched billing and shipping addresses, or high-risk payment methods.
Partner with cyber security firms to integrate fraud prevention software that analyses user behaviour and detects anomalies
2. Educate Employees and Customers
Train staff to recognise common scams, such as phishing and fake escrow services. Provide clear guidance to customers on safe transaction practices, including how to spot and report fraudulent listings.
3. Secure Payment Gateways and Verify Identities
Ensure all transactions are processed through encrypted, PCI DSS-compliant systems. Implement identity verification measures, such as two-factor authentication (2FA) or Know Your Customer (KYC) checks, to confirm users’ identities.
4. Monitor Listings and Collaborate with Authorities
Use automated tools and human moderators to review listings for red flags, such as unrealistic prices or duplicate images. Work with organisations like Action Fraud and the National Cyber Security Centre (NCSC) to share intelligence on emerging threats.
5. Provide Clear Dispute Resolution Processes
Establish transparent procedures for resolving disputes between buyers and sellers. Ensure customers know how to report fraud and what steps will be taken to investigate their claims, fostering trust in your platform.
While online marketplaces offer incredible opportunities, they also come with risks. By staying vigilant, using secure practices, and educating yourself about common scams, you can significantly reduce the likelihood of falling victim to fraud. Whether you’re an individual buyer or seller, or an organisation facilitating transactions, taking proactive steps to protect yourself is essential in today’s digital marketplace.
For organisations concerned about their systems and controls for managing financial crime risks, AJC is here to assist. AJC, with its wealth of experience and expertise, is able to assist companies in navigating these challenges and help guide them towards resilience. Find out more about AJC’s Fraud Prevention services here.
Please contact us on 020 7101 4861 or email us info@ajollyconsulting.co.uk if you think we can help.
Sources
https://investors.ebayinc.com/
Image accreditation: Oberon Copeland (July 2022) from Unsplash.com. Last accessed on 17th February 2025. Available at: https://unsplash.com/photos/a-screen-with-a-message-on-it-lxpLpl_3ykw
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