Marketplace scams: risks when buying and selling through online classifieds

Marketplace scams happen when someone poses as a buyer or seller on online classifieds or a marketplace to take your money, or your item, without a real payment or a real sale behind it. Online classifieds and marketplaces let people buy and sell directly with each other. That’s what makes them useful, and also what makes them attractive to scammers: there’s no shop, no staff and often no payment protection between two strangers. Consumer Affairs Victoria puts it simply: scammers “pose as both sellers and buyers”.

This guide explains the most common marketplace scams on both sides of a sale, the warning signs, practical ways to check a buyer, seller or payment, and what official sources say to do if something goes wrong. It doesn’t name any particular platform.

How it works when you’re selling

Scams targeting sellers usually aim to get you to send money, or hand over the item, before any real payment arrives.

1. An eager “buyer” appears. They message quickly, agree to your price without haggling, and often don’t want to see the item. NT Consumer Affairs lists buying without viewing in person as a warning sign.
2. The conversation moves off the platform. The buyer asks to continue by email, text or a messaging app. Consumer Affairs Victoria lists wanting to deal directly, rather than through the site, as a warning sign.
3. A fake payment confirmation arrives. A long-standing Scamwatch warning for sellers describes a fake email, styled to look like it’s from a reputable payment or money transfer company, saying the buyer has paid in full. Consumer Affairs Victoria describes fake payment and escrow websites “that look real”.
4. A catch is added. The email says the money is “on hold” until you pay something: shipping, insurance, a courier, or a fee to “upgrade” your account. eSafety’s Be Connected says the instant payment service it describes is free, so anyone asking you to pay for a “business” or “premium” upgrade before you can be paid is likely a scammer.
5. The overpayment twist. Sometimes the “payment” is more than the price, and the buyer asks you to send back the difference, or to forward it to their courier or agent. WA ScamNet says with cheques, scammers rely on the refund being sent before the original cheque bounces. NT guidance says some original payments are later reversed because they came from a stolen card.
6. Someone collects the item. eSafety’s Be Connected warns about buyers who “offer to send a friend or relative to pick up the item on their behalf”.
7. The buyer vanishes. Scamwatch says that once the fee is paid, the “buyer” is often hard to contact or trace, and no payment arrives.

Scamwatch’s Methods page adds a related warning: if someone asks you to set up a new bank account or PayID to pay or be paid, it’s a cue to stop and check who you’re dealing with. Our phone banking guide explains how PayID works.

How it works when you’re buying

Scams targeting buyers aim to take a payment or deposit for something that doesn’t exist.

1. A tempting listing. NT Government guidance says scam sellers can copy details from real ads, so “the goods may not exist”. Consumer Affairs Victoria says scammers may also hijack real sellers’ ads and feedback profiles. Commonly faked items include cars, boats, electronics, concert tickets and pets.
2. A low price. NT Consumer Affairs says prices are often lower than similar items on the same or other sites.
3. A reason they can’t meet. Scamwatch’s 2020 holiday-season alert describes sellers “often claiming they are travelling”, with someone else supposedly delivering the goods.
4. A request for payment first. NT Consumer Affairs lists a seller who is unavailable and “insists on payment prior to arranging for delivery” as a warning sign.
5. A “safe” payment service that isn’t. Consumer Affairs Victoria describes fake escrow websites that look genuine. You pay, and the goods never arrive.
6. More money, more stories. NT guidance describes pet scams that use photos and emotional stories, sometimes claiming the animal is sick and needs treatment, or that a crate fee is needed, before it can be sent.

A fictional example

This example is fictional. Names and the website are invented.

Tom, selling. Tom lists a used road bike for $850. Within ten minutes, “Sam” replies: “Still available? I’ll take it at full price. I’m working away so my cousin will collect. Can we continue by email?”

That evening Tom receives an email from “secure-pay-hold.example” with a logo and a reference number. It says Sam has paid $1,000, which includes $150 for the cousin’s “courier”, and that the funds will be released to Tom once he forwards the $150. Sam follows up by text: “Sorry, I added the courier fee by mistake. Can you send it today so my cousin can come tomorrow?”

Tom opens his banking app instead of the email link. No money has arrived. He replies that he only accepts payment he can see in his account before handover. Sam stops responding.

Aisha, buying. Aisha finds a listing for a nearly new tablet at half the usual price. The seller says they’ve just moved interstate and will post it once she pays a deposit through an “escrow” site, tradesafe-hold.example. She searches the listing’s exact wording and finds the same description and photos on an older ad in another city. She doesn’t pay.

What gave it away: full price without viewing, a move off the platform, a payment email asking for money first, an overpayment, a “friend” collecting; and for Aisha, a low price, a seller who can’t meet, an unfamiliar escrow site and a copied ad.

Warning signs of a marketplace scam

• A message or email saying payment is “on hold” until you pay a fee.
• A buyer who overpays and asks for the difference back, or for money to go to a courier or agent.
• A buyer who agrees without seeing an expensive item, or wants to send someone else to collect.
• A seller who can’t meet, is “travelling”, and wants a deposit or full payment first.
• A price far below similar listings.
• Requests to pay by bank transfer to a stranger, wire transfer, money order, pre-loaded card, vouchers or cryptocurrency.
• A payment or escrow website you haven’t heard of, suggested by the other person.
• Pressure to move the conversation or payment off the platform.
• An emotional story, especially about a pet, that comes with new costs.

For red flags that apply to any contact, see the quick scam red-flag checklist.

How to check if it’s real

These checks are based on guidance from Consumer Affairs Victoria, eSafety, Scamwatch and the NT Government (checked October 2026).

If you’re selling: confirm the payment yourself

1. Ignore links in payment emails. Consumer Affairs Victoria says not to follow links in payment confirmation emails to log in.
2. Open your banking app, or type your bank’s address. Consumer Affairs Victoria describes logging into your account directly and confirming the money has cleared before sending the item.
3. Look for the money, not the message. eSafety says to never rely on confirmation emails showing a buyer has overpaid; with these scams “no money ever appears in your account”.
4. Never pay to get paid. eSafety says to never send money first to receive a payment.
5. Check named companies independently. Scamwatch describes calling any company named in a “confirmation” email using contact details from its official website, not the email.
6. Hand over the item only once paid. In a June 2025 warning, ACT Policing said to “never hand over goods until payment has been received”, and to verify deposits by checking your own account rather than a buyer’s proof of payment.

Our phishing guide shows how to check an email’s real sender address.

If you’re buying: check the seller and the listing

1. Search the ad’s wording and photos. Consumer Affairs Victoria suggests searching the exact wording of an ad to check for copies.
2. Keep messages on the platform. NT Government guidance describes using the site’s own message service.
3. Be wary of payment up front to a stranger. Consumer Affairs Victoria says not to pay a stranger in advance by money order or wire transfer, and NT Consumer Affairs says not to pay up front to people you haven’t met. Consumer Affairs Victoria describes using protected payment methods such as a credit card.
4. Check business sellers on ABN Lookup. If a seller claims to be a business, ABN Lookup at abr.business.gov.au shows whether an ABN is active and the business’s public details.
5. Check before you send money on. NT Consumer Affairs says to “never send money on for a customer”, which could amount to money laundering. See job scams for more on money mules.

Your rights with private sellers

Buying from an individual is different from buying from a business. The ACCC says that if the seller is a private individual, “some consumer guarantees do not apply”, and that on marketplace platforms, it’s generally up to the seller, not the platform, to resolve most problems. The ACCC’s Buying online page explains this.

Common questions

How can I tell if a marketplace buyer is a scammer?

Official sources describe a buyer who agrees to your price without seeing the item, wants to move the conversation off the platform, or plans to send someone else to collect. A payment email saying money is “on hold” until you pay a fee, or an overpayment with a request to send back the difference, are further signs. One sign alone isn’t proof. See How it works when you’re selling.

How do I know if a buyer has really paid me?

Consumer Affairs Victoria describes logging into your bank account directly, not through a link in an email, and confirming the money has cleared before sending the item. eSafety says that with these scams “no money ever appears in your account”. In a June 2025 warning, ACT Policing said to “never hand over goods until payment has been received”. See If you’re selling: confirm the payment yourself.

Why is a buyer asking me to pay a fee before I get paid?

This matches the seller scam official sources describe: a fake payment email says the money is “on hold” until you pay for shipping, insurance, a courier or an account “upgrade”. eSafety says to never send money first to receive a payment, and Scamwatch says that once the fee is paid, the “buyer” is often hard to contact and no payment arrives. See Warning signs of a marketplace scam.

What is an overpayment scam?

In an overpayment scam, the “payment” is more than the price, and the buyer asks you to send back the difference or forward it to their courier or agent. WA ScamNet says with cheques, scammers rely on the refund being sent before the original cheque bounces, and NT guidance says some payments are later reversed because they came from a stolen card. Your bank can explain when a cheque has fully cleared. See How it works when you’re selling.

Is it safe to pay a seller before I see the item?

Consumer Affairs Victoria says not to pay a stranger in advance by money order or wire transfer, and NT Consumer Affairs says not to pay up front to people you haven’t met. Consumer Affairs Victoria describes using protected payment methods such as a credit card, and searching the ad’s exact wording for copies. NT guidance says scam sellers can copy real ads, so “the goods may not exist”. See If you’re buying: check the seller and the listing.

What do I do if I’ve been scammed on a marketplace?

Scamwatch says to contact your bank or card provider immediately and ask it to stop any transactions. The ACCC notes your card provider may be able to reverse a credit card charge if you didn’t receive what you paid for. Official sources also describe reporting the buyer, seller or listing to the platform, and reporting to Scamwatch and through cyber.gov.au. See If it’s already happened.

If it’s already happened

Scamwatch’s steps (checked October 2026):

1. Act fast. “Contact your bank or card provider immediately to report the scam”, and ask them to stop any transactions. The ACCC notes your card provider may be able to reverse a credit card charge if you didn’t receive what you paid for.
2. Get help to recover. If you shared personal or identity details, contact IDCARE on 1800 595 160 (see also what official sources describe after identity theft). If you’re unhappy with your bank’s response, you can complain to AFCA.
3. Report and warn others. Report to Scamwatch and make a police report online through cyber.gov.au. NT Consumer Affairs also says to report lost money to local police.
4. Tell the platform. Report the buyer, seller or listing. NT guidance describes reporting scam ads to the website operator.
5. Watch for follow-up scams, including offers to recover your money.

Where to report

• Scamwatch at scamwatch.gov.au.
• ReportCyber at cyber.gov.au for police reports.
• The platform where the listing or message appeared.
• Your state or territory consumer protection agency. The ACCC’s where to go for consumer help page links to each one.

See where to report scams and cybercrime in Australia and first steps after a scam. For fake online stores, see online shopping scams.