Seller Beware - Scam Alert!

Want to sell something online and make some money? Scammers do too.

You’re eager to clear out something you no longer need in your house, so you go to a general online marketplace like bismanonline.com and post it for sale. You’ve set your price, described the item, and added pictures. Your ad is live. Hooray! Now, you just wait for buyers willing to take your item off your hands, while you make a little extra money.

That’s all well and good, but there’s an old saying—a fool and his money are soon parted. Our local online marketplaces are prime hunting grounds for scammers, because they don’t have the protections of stores like Etsy or eBay. Scammers come from around the world to prey on unsuspecting sellers eager to offload their items, especially on places that simply provide a listing without any sales processing.

Crooks are good at what they do. The red flags may be at ground level, not waving high and obvious. You don’t have to be a fool to be fooled, just naïve of the tactics. In this article, you’ll learn some of the red flags that can pop up at any time in the process and also some precautions you can take to discourage scammers in the first place.

MODUS OPERANDI

Scammers have several tools in their toolbox to try to influence you to giving them your money, instead of the other way around. Scammers understand manipulation and social engineering tactics. Good scammers also understand the general process of a legitimate sale. That’s where it’s hard to distinguish. You want to be fair and to trust people, but how do you know a legitimate buyer from a scammer?

Below are the red flags to watch for during the process:

Initial contact – When a potential buyer first contacts you, there are certain behaviors that most cautious people adhere to. Others can tip you off between a legitimately interested party and someone out to simply target you as their next victim.

• Never give out your address to anyone up front. That’s always a red flag, since someone could simply be using it as a tool to attack you in your home. Asking for your general location (east of town, near the river, north of town, downtown, etc.), however, is reasonable for planning a possible pickup by a potential buyer who is fairly certain up front of wanting to purchase. But a good scammer may also ask this because they know it's normal buyer behavior.
• Most buyers start out by asking if the product is still available. A good scammer does the same. They know the usual routine.
• Most buyers want more information than what’s in the ad. A good scammer may also do this, however. A legit buyer wants to minimize their disappointment and avoid an unnecessary trip, especially if they have to drive some distance. It can be difficult at this stage to know if your initial contact is legitimate or not. Most of the time, it will be.

Agreement of sale – So, your “buyer” likes what you have to offer and the terms of the negotiations you’ve conducted. But whether you are dealing with someone legitimate or not is still questionable. This is where the real scam happens.

• A legitimate local buyer will usually want to see the item before they pay for the item. Scammers will usually claim they want it shipped.
• How will they pay? Legitimate buyers will usually offer cash in person. However, they may also ask to pay by PayPal, Venmo, or some other form of online payment service. More buyers are utilizing these services instead of going to the bank for cash, and they know no one wants to be paid by check because those can be faked. Be careful and beware.
• Scammers will never offer cash. They prefer the online services without seeing the product.
• A legitimate buyer will generally want to see the item(s) before paying for them. They could even suspect you of a scam of taking their money without providing a product, because scams like this also exist. An honest buyer will want to pay in person, whether it’s them or a representative (friend or family member) picking up the item for them.

THE SCAM – ONLINE PAYMENTS

So far, everything seems legitimate. You may have your item sold. That’s exciting, and it’s easy to get caught up in getting it out of your life and making some extra money.

Put the brakes on! You’re not out of the woods yet, and may actually be going deeper into a dark, dangerous forest of nightmares. This is where the real scam takes place—parting you with your money. They’ve gained your confidence and everything seems good.

Now for the payment. As mentioned, online payment processors can be legitimate ways to pay for items in local marketplaces. However, they are a favorite tool of scammers. And here’s a major method:

1. They offer to pay by PayPal, Venmo, or other processor, “because it protects buyers and sellers.”
2. You either send an invoice or provide an email for them to send the payment to your account.
3. You receive an email that appears to be from the payment processor saying the money has been sent but it’s more than the amount agreed upon. In that email is a statement that XX amount is for shipping the product and must be paid, but nothing has appeared in your account. WARNING!!! 

• The scammer will assure you this is legitimate and that the money will transfer to you once you pay the shipping fee. That’s not how PayPal or any payment processor conducts transfers. 
• If the buyer submitted the payment, it would show up in your account IMMEDIATELY. If the money isn’t in your account, they haven’t paid.
• Payment processors do not add shipping fees for the seller to pay. That should all be the buyer’s responsibility.
• Check the real email address of the email notification. It’s likely not a true account from the payment processor (see email screenshots).
• If you’ve reached this point, they’re good, but this is the point of no return. STOP! DO NOT send any funds! They should be paying you. 

Click on the images below to view them fullscreen

It’s been a long road of hoping to sell your item(s), but you can’t let your eagerness overcome your better judgment.

If you experience this, report the incident to the applicable payment processor and/or the state Attorney General fraud office. Keep a detailed record of the conversation, all emails, texts, phone numbers, etc. for reporting.

AVOID VICTIMIZATION - PRECAUTIONS

There are some precautions you can take to minimize the risk of trouble in selling your items online:

• Don’t list your phone number in the ad. Even if the service allows you to reveal a phone number, it’s safer to make buyers use an account through the online marketplace for contacting you. It is less convenient, but you will have a record of any suspicious conversation for easier reporting in cases of fraud or threats.
• If you do have a phone listed and receive a text, ask to talk on the phone at some point. A lot of scams come from oversees. Those scammers will use text. Foreigners don’t want to reveal their accents. They do not want to talk on the phone. No matter how convenient texting may be, ask the potential buyer to talk about the details of the sale.
• If they refuse or a call connects and disconnects immediately, and they then text to say they had a bad connection, it’s likely a scammer. At this point, end the conversation. Even if you lose a potential sale, it’s worth avoiding the risk.
• If they talk to you, listen for background sounds. Does it sound like a call center (lots of voices in the background)? They may say they’re at a party, but don’t trust that. Most people would not legitimately call on a product while at a party.
• Look up the area code of their phone number online. Is it for your area or out of state? This may provide further clues of legitimacy. A scammer may make an excuse for an out-of-area area code by saying they live on a “base” aka military base, and when pressed, they may have exact answers—they do their research and are ready. Be aware that numbers are often spoofed, even in your area code.

• Don’t use your full name. Most people buying/selling online in a direct marketplace wants some sense of anonymity or at least to protect their privacy. Providing a full name is a red flag of someone trying to gain your confidence for nefarious reasons.
• Scammers may use stolen identities. In order to gain your confidence, scammers may provide some confirmation of their identity. However, it will likely be stolen. Legitimate buyers don’t feel the need to verify their identity. In this day and age, most people are cautious about giving out personal info. Scammers may play this game too but often try to provide assurance with stolen identities, even images of documents like driver's licenses.
• The last part of the sale should be giving out an address. If you’re not sure about having a stranger come to your home, you may want to meet them someplace public. However, with larger items of a price that tend to attract scammers, you may have to provide your location for pickup, but only give it out when you are comfortable. You may also want to have a second person with you if you're not comfortable being alone when strangers come to your home.
• If you are listing something with the intent of local sales, don’t agree to shipping items. Unless you are selling something on a marketplace where you expect to ship your item and that service does verification and has protections in place, make the buyer pick it up. 
• If the potential buyer says they will use a shipper and they need your address, it is best to cut them off at that point. They could be intending to rob you or be setting you up to trick you into their scam.

This should all be common sense, but it’s easy to get swept up in a scam when they’re smooth and practiced. Watch for the red flags and don’t be afraid to make them wait or to cancel a potential sale if you don’t feel safe. No sale is worth the loss of money or security. Once those are gone, you can’t get them back.

Note: This all came from a personal experience, but the scammer’s bluff was called without any losses by the seller. See the emails supposedly from PayPal of how they expected to steal money instead of sending money. PayPal and the ND Attorney General's office were notified of this.