Quick checklist (read before you buy)
- Verify the seller’s identity: phone, address, verified badges, and consistent reviews.
- Use secure payment methods: credit cards or payment services with buyer protection (avoid wires and gift cards).
- Inspect photos and descriptions: reverse-image search product photos and read full specifications.
- Compare prices: if the deal is far below market value, treat it as suspicious.
- Keep records: save screenshots, order confirmations, seller messages, and receipts.
Why this matters
Online marketplaces make it easy to connect buyers and sellers, but they also let fraudsters hide behind plausible storefronts. In my practice advising consumers, I’ve seen the same patterns: polished listings, fake reviews, and pressure to pay off-platform. Protecting yourself will not only reduce financial loss but also make recovery—through chargebacks, disputes, or reporting—far more likely.
Authoritative resources on this topic include the Federal Trade Commission (FTC) and the Consumer Financial Protection Bureau (CFPB). The FBI’s Internet Crime Complaint Center (IC3) also monitors online marketplace fraud trends and accepts complaints (see: https://www.ic3.gov). For consumer-focused guidance visit the FTC (https://consumer.ftc.gov) and CFPB (https://www.consumerfinance.gov/consumer-tools/).
Common scam types and how they work
- Fake listings: Scammers copy product descriptions and images to create listings for items they don’t own. They may direct buyers to pay outside the marketplace.
- Counterfeit products: Sellers offer branded goods at steep discounts but ship knockoffs—or nothing at all.
- Phishing and credential theft: Fraudsters send convincing emails or messages that look like the marketplace asking you to update payment info.
- Non-delivery after payment: The most common pattern—seller disappears after receiving funds.
- Imposter sellers: Scammers mimic legitimate brands or sellers, often using slightly misspelled company names and copied logos.
Red flags include unrealistic prices, requests for wire transfers or gift-card payments, limited or no verifiable reviews, and sellers who refuse returns or hide contact information.
Before you click “buy”: a step-by-step vetting process
- Check the seller profile
- Look for a history of sales, buyer feedback, and a verifiable contact method. New accounts with perfect 5-star reviews in a short time span are suspicious.
- Use reverse image search (images.google.com or TinEye) to see if product photos appear on other sites.
- Read policies and shipping terms
- Confirm the seller’s return, refund, and shipping policies. Legitimate sellers provide clear timelines and a returns address.
- Confirm price and model details
- Compare the item on multiple trusted retailers. Very low prices for current, popular items are a common lure.
- Inspect the listing text
- Generic descriptions, bad grammar, or repeated copy-pasted text across listings are warning signs.
- Test seller responsiveness
- Ask a specific question about the product and note how quickly and professionally they respond.
- Decide on payment method
- Prefer credit cards or platforms with explicit buyer protection (PayPal, Apple Pay, Google Pay) instead of direct bank/wire transfers. Credit cards include dispute options; see our guide on when to seek a chargeback vs a bank dispute for timing and strategy: “When to Seek a Chargeback vs a Bank Dispute” (https://finhelp.io/glossary/when-to-seek-a-chargeback-vs-a-bank-dispute/).
Payment safety: what to use and what to avoid
- Recommended: Credit cards, platform escrow, or reputable payments like PayPal—these typically let you dispute unauthorized or non-delivered charges.
- Use marketplace checkout whenever possible—payment processed through the platform gives you a paper trail.
- Avoid: wire transfers, prepaid gift cards, cryptocurrency, or requests to pay via peer-to-peer apps; these routes are favored by scammers because they’re hard to reverse.
If you discover an unauthorized charge, follow your card issuer’s procedures promptly. See our step-by-step “Steps to Take After an Unauthorized Credit Card Charge” (https://finhelp.io/glossary/steps-to-take-after-an-unauthorized-credit-card-charge/) for timing and evidence to collect.
After a bad transaction: immediate actions to improve your chance of recovery
- Preserve evidence
- Save all messages, screenshots of the listing, order confirmation, and payment receipts.
- File a marketplace dispute
- Most platforms have a resolution center—start there immediately. Many marketplaces require you to open a claim within a fixed window.
- Contact your payment provider
- If you paid by credit card, file a dispute/chargeback with your issuer. If payment was via PayPal or another service, open a buyer-protection claim.
- Report to regulators and law enforcement
- File complaints with the FTC (https://consumer.ftc.gov), the FBI’s IC3 (https://www.ic3.gov), and your state attorney general. If you believe identity theft occurred, consider a credit freeze and file a report with the three major credit bureaus.
- Escalate if needed
- If the seller refuses a refund and the merchant’s marketplace won’t help, use the documentation to appeal to your card issuer or consider filing a consumer complaint. Our guide on documenting scams explains how to organize records for regulators: “How to Document a Financial Scam for Regulators” (https://finhelp.io/glossary/how-to-document-a-financial-scam-for-regulators/).
In my practice, I’ve seen timely action—especially filing a dispute within the first 60–120 days—greatly improve outcomes. Acting quickly preserves merchant logs and card-issuer timelines.
Special considerations for seniors and new online shoppers
- Use account-protected browsers and avoid public Wi‑Fi when checking out.
- Set up two-factor authentication on marketplace accounts.
- For seniors, involve a trusted family member or advisor when a large purchase is proposed.
Template: short message to open a marketplace dispute
“Hello — I ordered [product name] on [date], order #[order number]. The item received was [missing/different/counterfeit], and the seller has not [shipped/responded/refunded]. I’ve attached screenshots of the listing, payment receipt, and messages. I’m requesting a full refund or retrieval of funds.”
Save this text and edit with your transaction details before submitting.
When to report criminally
Report to local police if you were extorted, threatened, or mailed counterfeit goods that may be illegal. For widespread or cross-state fraud, the FBI’s IC3 accepts complaints and may investigate patterns of marketplace scams.
What to do about identity exposure
If the scam involves password or financial-data theft: change passwords, enable two-factor authentication, place a fraud alert or credit freeze at the credit bureaus, and follow identity-theft recovery steps listed by the CFPB and FTC.
Common mistakes to avoid
- Paying outside the marketplace to “save on fees.”
- Ignoring poor grammar or inconsistencies in listings.
- Waiting too long to dispute a charge—many protections have short windows.
Useful government and consumer resources
- FTC: consumer.ftc.gov — file complaints and learn about scams.
- FBI IC3: ic3.gov — report internet-enabled crimes.
- CFPB: consumerfinance.gov — guidance on refunds, chargebacks, and protections.
Internal resources on FinHelp.io
- If you need help deciding between a chargeback and other dispute options, read our explainer: “When to Seek a Chargeback vs a Bank Dispute” (https://finhelp.io/glossary/when-to-seek-a-chargeback-vs-a-bank-dispute/).
- If your card was charged without authorization, follow the steps in: “Steps to Take After an Unauthorized Credit Card Charge” (https://finhelp.io/glossary/steps-to-take-after-an-unauthorized-credit-card-charge/).
- For help preparing regulator-ready documentation, see: “How to Document a Financial Scam for Regulators” (https://finhelp.io/glossary/how-to-document-a-financial-scam-for-regulators/).
Professional disclaimer: This article is educational and does not constitute legal, tax, or financial advice. For tailored guidance based on your situation, consult a licensed consumer-attorney or financial counselor.
If you want, I can create a printable one-page checklist or a consumer complaint template you can edit and submit to a marketplace or your card issuer.
