Facebook Marketplace Overpayment Scams: How Australian Small Business Sellers Can Spot and Avoid Them

Summary

This guide helps you troubleshoot and resolve: Facebook Marketplace Overpayment Scams: How Australian Small Business Sellers Can Spot and Avoid Them. Follow the steps below to fix the issue.

Common Causes

Facebook Marketplace is a popular way for Australian small businesses to sell goods locally, but it is also a common target for scammers. One of the most frequent schemes targeting sellers is the overpayment scam. In this scam, a buyer sends more money than the agreed price—usually via a fraudulent cheque, stolen credit card, or fake payment notification—and then asks the seller to refund the difference. By the time the original payment is reversed or bounces, the seller has already sent their own money to the scammer and may have lost the item as well.

How the Overpayment Scam Works

Scammers typically pose as genuine buyers and initiate contact through Facebook Messenger. They may express strong interest in your item without asking many questions about its condition. Once a price is agreed, they claim they will pay via a method that allows them to "accidentally" send too much, such as a bank cheque or a payment that appears pending in your account. They then request that you refund the excess amount via bank transfer, PayPal Friends & Family, or gift cards before the original payment has fully cleared.

Red Flags to Watch For

• The buyer offers to pay more than your listed asking price.
• They claim a third party, such as a shipping agent or mover, will collect the item.
• They send a screenshot of a payment that you cannot verify in your own bank account.
• They pressure you to refund the "extra" funds immediately.
• They ask you to send money via wire transfer, gift cards, or cryptocurrency.
• They have a newly created Facebook profile with little or no history.

Quick Fix Steps

1. Do not hand over the item until the payment has fully cleared in your bank account.
2. Never refund an overpayment to a buyer, especially via a different method than the original payment.
3. If you receive a cheque, wait for it to clear completely—not just appear as "pending"—before considering the sale final.
4. Cancel the transaction and block the buyer if they insist on an overpayment and refund arrangement.
5. Report the listing or user to Facebook using the Report option on their profile or message thread.
6. If you have already sent money or shared banking details, contact your bank immediately and report the scam to Scamwatch at scamwatch.gov.au.

Detailed Instructions

Verify the Payment Before Releasing Goods

1. Log in to your business banking app or online banking portal.
2. Confirm that the funds from the buyer show as Available or Cleared, not Pending or Processing.
3. Match the deposit amount exactly to your listed sale price. If the amount is higher, do not proceed.
4. Contact your bank directly using the phone number on your bank card or statement if you are unsure whether a payment is legitimate.

Handle an Overpayment Request Safely

1. Decline the overpayment politely and ask the buyer to send the correct amount.
2. If they refuse or claim it was a mistake, end the conversation.
3. Do not send any refund until you have verified the original payment with your bank.
4. Take screenshots of the buyer's profile and messages for your records.

Report the Scammer on Facebook

1. Open the Facebook Messenger conversation with the buyer.
2. Click or tap the i (information) icon in the top right of the chat.
3. Select Report and follow the prompts to report the account for fraud or scam activity.
4. You can also report the Marketplace listing directly from the listing page by selecting Report listing.

Preventing Future Scams

• List items with a firm price and state clearly in the description that you do not accept overpayments or third-party collections.
• Use Facebook Marketplace's built-in checkout or PayPal Goods & Services for eligible transactions, as these offer some buyer and seller protection.
• Avoid accepting cheques from buyers you do not know and trust.
• Keep your business and personal banking separate to limit exposure if an account is compromised.
• Train any staff members who manage your Marketplace listings to recognise the signs of an overpayment scam.

If you suspect you have been targeted by a scammer or need help reviewing a suspicious payment, contact your bank immediately and report the incident to Scamwatch at scamwatch.gov.au.

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