Experts Warn of Scams on Facebook Marketplace
Experts have warned that over a third of the advertisements on Facebook Marketplace might be part of a scam, with the total losses from such activities in the United Kingdom reaching approximately 60 million British pounds in 2023.
Facebook Marketplace allows individuals to buy and sell new and used items including cars, watches, games, clothing, electronics, shoes, and handbags. According to the British network Sky News, a fraud prevention team from the British TSB bank conducted a study to investigate the authenticity of the product ads on Facebook Marketplace.
The team engaged with 100 sellers to determine whether the items offered for sale were legitimate or fraudulent. They found that 34 percent of the cases were fraudulent ads. This included the bank's experts whom the sellers believed were buyers being directed to fake online sites. In addition, some sellers refused to show actual photos of the products before receiving advance fees.
The study team additionally discovered that some counterfeit products were being sold as authentic and new, but at a price below the market rate to attract buyers.
For example, a scammer listed what they claimed to be an "iPhone 13" for just 84 British pounds, whereas the phone retails on Apple's website for 599 pounds.
When contacting the seller, a member of the TSB bank's fraud prevention team was directed to a fraudulent online site to process the payment. The team also came across an ad for a 2016 Audi Q3 priced at 6000 pounds. The seller refused to answer any questions and directed the fraud prevention expert to an email address.
Upon investigating the email address, the team discovered that it had been previously reported as part of a car-related scam.
Matt Hepburn, a spokesperson for TSB bank's fraud prevention team, stated that more than a third of the ads on Facebook Marketplace could potentially be scams.
He pointed out that the findings also revealed that buyers in the UK had lost just over 160,000 pounds daily after making purchases on Facebook Marketplace in 2023, which amounts to nearly 60 million pounds for the year. He added, "Social media sites must fulfill their obligations under the Online Fraud Charter and remove scam ads from their platforms."
Meanwhile, a spokesperson for Meta, the owner of Facebook, told Sky News: "We encourage our users to report scams immediately so we can take action, and we will continue to provide customers with the knowledge they need to safely navigate and avoid fraud on Facebook Marketplace."
The team engaged with 100 sellers to determine whether the items offered for sale were legitimate or fraudulent. They found that 34 percent of the cases were fraudulent ads. This included the bank's experts whom the sellers believed were buyers being directed to fake online sites. In addition, some sellers refused to show actual photos of the products before receiving advance fees.
The study team additionally discovered that some counterfeit products were being sold as authentic and new, but at a price below the market rate to attract buyers.
For example, a scammer listed what they claimed to be an "iPhone 13" for just 84 British pounds, whereas the phone retails on Apple's website for 599 pounds.
When contacting the seller, a member of the TSB bank's fraud prevention team was directed to a fraudulent online site to process the payment. The team also came across an ad for a 2016 Audi Q3 priced at 6000 pounds. The seller refused to answer any questions and directed the fraud prevention expert to an email address.
Upon investigating the email address, the team discovered that it had been previously reported as part of a car-related scam.
Matt Hepburn, a spokesperson for TSB bank's fraud prevention team, stated that more than a third of the ads on Facebook Marketplace could potentially be scams.
He pointed out that the findings also revealed that buyers in the UK had lost just over 160,000 pounds daily after making purchases on Facebook Marketplace in 2023, which amounts to nearly 60 million pounds for the year. He added, "Social media sites must fulfill their obligations under the Online Fraud Charter and remove scam ads from their platforms."
Meanwhile, a spokesperson for Meta, the owner of Facebook, told Sky News: "We encourage our users to report scams immediately so we can take action, and we will continue to provide customers with the knowledge they need to safely navigate and avoid fraud on Facebook Marketplace."
