How do I avoid being scammed when buying or selling on online marketplaces?
Meet locally in a public place for cash transactions, use the platform's payment system rather than Venmo or Zelle, and never accept a cheque for more than the agreed price.
Last reviewed: 10 June 2026
Explanation
Peer-to-peer marketplaces like Facebook Marketplace, Craigslist, and OfferUp are generally safe for straightforward local transactions, but both buyers and sellers face distinct scam risks. Knowing both sides helps you protect yourself regardless of which role you are in.
As a buyer: the main risks are non-delivery (paying before collecting), counterfeit goods, and bait-and-switch (item looks different in person). For local purchases, inspect the item before paying. Use cash or a payment method with buyer protection for anything of significant value. Avoid sellers who insist on payment before you can see the item, who are unwilling to meet in person, or who want to ship when local delivery makes no sense.
As a seller: the primary risks are fake payment confirmation screenshots, cheque overpayment scams, and counterfeit cash. Never release an item until payment has cleared in your actual account — not just a notification on your phone, which can be faked. Never accept a cheque for more than the agreed price with a request to return the difference. For high-value items, meet at your bank to receive a cashier's cheque and verify it before handing over the goods.
For both: meet in a well-lit public place with other people around, ideally near a police station or in a designated community safe-exchange location (many police departments offer their parking lots for this purpose). Tell someone where you are meeting. Take a photo of the other person's ID for high-value transactions.
Common red flags
- Buyer offers to pay more than the listed price and asks you to return the difference
- Seller insists on payment before you can see or collect the item
- Payment confirmation screenshot instead of actual payment in your account
- Buyer or seller refuses to meet in person despite being listed as local
- Buyer asks for your email to send a payment outside the platform's system
- Item price is dramatically below comparable listings and seller is eager to close quickly
What to do now
- For local sales, inspect before paying and meet in a public place
- Use the platform's built-in payment system rather than external payment apps
- Never accept overpayment cheques — return them and request the correct amount
- Verify payment is in your account before handing over any goods
- Report fraudulent listings and profiles to the marketplace platform
- Report financial losses to the FTC at ReportFraud.ftc.gov
Frequently asked questions
Is Facebook Marketplace safe to use?
Many millions of legitimate transactions happen on Facebook Marketplace daily. The risk factors are specific and avoidable: see items in person before paying, use Marketplace's purchase protection for shipped items, and apply the same common sense you would in any cash transaction with a stranger.
What is a safe exchange location?
Many police departments designate their parking lots or lobbies as safe exchange zones for online marketplace transactions. The presence of security cameras and potential witnesses deters both fraud and physical crime. Search 'safe exchange zone near me' to find local options.