In a day and age where consumers report at least $10 billion of fraud related losses per year, it is more important now than ever to equip yourself with the tools to detect potential fraud before it happens to you. The FTC revealed that not only did consumers report a 14% increase in fraud related losses, but that online shopping issues were the second most reported category of fraud in 2023. With that in mind, an online shopping and auction platform such as eBay is no stranger to the prevalence of fraud occurring in their online space. Even though it may not be as popular as it once was, surprisingly individuals are still falling victim to eBay scams. If you weren’t aware, eBay is an online marketplace that brings buyers and sellers together to conduct online transactions. With 132 million active buyers worldwide – shopping 2.1 billion seller listings, it comes as no shock that scammers find eBay a lucrative environment to find victims. Look out for these common eBay scams, as well as red flags that can alert you to potential scams, to protect yourself and your wallet if you buy or sell on the platform.

Common eBay Scams

While this is not an all-inclusive list of scams you can expect to see on eBay, these are some of the most common to watch out for.

• You Send Payment and the Seller Takes Your Money: This one is exactly what it sounds like; you pay for an item on eBay, and never receive the item from the seller. eBay has a Money Back Guarantee program in the case of an unresponsive seller shipping you the incorrect item, or no item at all. However, there are certain eligibility requirements that must be met to take advantage of this guarantee. For example, you must have used approved payment methods and paid via eBay checkout in the transaction, must have attempted to contact the seller, and must have given three business days for the seller to resolve the issue. Additionally, certain items are not eligible for the Money Back Guarantee, which can be found
• The Seller Ships with an Incorrect Name: This scam involves the fraudster preying on your “good Samaritan” mentality. In this scenario, the seller would ship the package to the correct address, but intentionally use the wrong name to make you believe you received the incorrect package. The fraudster is hoping you return the package to the post office or shipping company, as this voids eBay’s Money back Guarantee since it is considered a refused or returned package. The fraudster gets to keep your payment, and you can’t leave feedback – since it would be considered resolved.
• Misleading/Counterfeit Listings: A misleading listing is one that entices you to believe you are receiving one thing, but you end up receiving something else – or maybe even nothing at all. The problem with misleading listings is that oftentimes the seller does include the details somewhere in the listing, but it might not be clear to buyers. A counterfeit listing is one that includes a counterfeit item that is advertised as being the real deal. Making purchases online has its downside, such as being unable to verify the authenticity of goods prior to purchase. These “knock-offs” are usually advertised at very attractive prices, so it is good practice to be wary of items that are heavily marked down when they have a much higher market value.
• Overpayment Scams: We’ve written about overpayment scams in the past, and they’re prevalent on eBay too. In this situation you’re selling an item, and a buyer contacts you and offers you more than you are asking for the item and only if you would take a personal check. In turn, you’re only getting a giant headache in the form of a phony check that will never clear. In addition, you’ve already shipped the buyer your item which they’ll of course keep, and you’ll most likely be responsible for the bounced check or incurred fees from your bank besides.

Red Flags to Look Out For

Unfortunately, the tactics scammers employ to defraud unsuspecting people is constantly evolving. However, keeping some of these red flags top of mind – can help you detect a scam before it happens to you.

• Short Duration Listings: eBay says to be wary of items that have only been listed for one day. While eBay says there are exceptions to this, such as tickets for an event happening that same day, fraudsters know their luck will run out the longer their item is listed for. The short duration of these listings is often paired with the fraudster expressing a sense of urgency to close the deal.
• Heavily Discounted/Sold-Out Items: The saying, “If it seems too good to be true, it probably is,” applies on eBay, too. Be cautious of listings showing heavily discounted items, such a luxury handbag, or a popular item that has been sold out, such as the latest gaming console.
• Sellers Wanting to Conduct Business Off eBay: Whether it’s attempting to personally contact you or enticing you to make a payment off eBay’s online platform, fraudsters know off-eBay communications get them closer to their ill-gotten gains. eBay notes that once communication is taken off their platform, your purchase will not be protected by the Money Back Guarantee. It is always a best practice to utilize eBay messages to communicate with sellers, and use approved payment methods during eBay checkout to complete your transaction.
• Unsafe Payment Methods: eBay has been in the game a long time, making them an expert in knowing which payment methods are safe. eBay says to take caution with sellers who request payment into overseas accounts, prepaid or gift cards, or cryptocurrency – because oftentimes these transactions cannot be traced. It is always a best practice to go by the list of payment methods offered at eBay checkout. Unsafe payment methods also include personal checks or person-to-person digital payments (Venmo, Zelle, Cash app).

While this list of red flags is a good start in learning to recognize fraud, go with your gut too. Just because something isn’t online or on this list, doesn’t mean it’s not a scam. The more you educate yourself on the actions and tactics of scammers, the more you will be able to tell when something just isn’t right.

What to Do if You Believe You Fell Victim to an eBay Scam

eBay is aware of the scammers infiltrating their platform and has procedures in place to assist customers that believe they have been defrauded.

eBay has a Security Center that is dedicated to providing customers with tips and resources for protecting their information, staying safe from scammers, reporting concerns, and even reporting fraud or stolen goods to law enforcement. There is a great deal of information dedicated to staying safe from scammers, including tips on how to recognize fake emails, web pages, and scams, as well as procedures buyers and sellers should follow in conducting transactions. If you’re looking for a quick way to report a fraudulent seller directly to eBay, click here.

At First Financial, we’re always thinking first about how to best protect the personal and financial information of our valued members. If you ever come across anything suspicious on any of your First Financial accounts, or want assistance in determining if an offer, website, or service is legitimate – give us a buzz. Don’t hesitate to contact our member services department at 732-312-1500 or visit one of our local branches.