How to Spot Fake Facebook Marketplace Overpayment Scams Targeting Australian Small Business Sellers

Summary

This guide helps you troubleshoot and resolve: How to Spot Fake Facebook Marketplace Overpayment Scams Targeting Australian Small Business Sellers. 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 scammers frequently target sellers using overpayment schemes. In these scams, a buyer claims to have paid more than the agreed price and asks you to refund the difference. The original payment is fake, reversed, or never existed, leaving you out of pocket for both the item and the refunded amount.

Quick Fix Steps

1. Stop all communication with the buyer immediately.
2. Do not refund any money until the payment has fully cleared in your bank account.
3. Report the buyer and listing to Facebook.
4. Block the buyer to prevent further contact.
5. If you have already sent money or goods, report the incident to Scamwatch and consider contacting your bank.

Detailed Instructions

How Overpayment Scams Work

A scammer contacts you about an item listed on Facebook Marketplace. They agree to buy it, often without seeing it in person, and claim to have sent payment via PayPal, bank transfer, or a cheque for an amount higher than your asking price. They provide a fake payment confirmation email or screenshot and ask you to refund the "extra" amount to a different account or via a different method. By the time you realise the payment was fraudulent, you have already sent your own money to the scammer.

Red Flags to Watch For

• The buyer offers to pay more than your listed price without negotiation.
• They claim to have sent payment but provide only a screenshot or email, not a verified transaction in your account.
• They ask you to refund money to a different account, email address, or payment method than the one they used to pay.
• They pressure you to act quickly before the payment "expires" or is reversed.
• They claim to be interstate or overseas and want to arrange their own courier.
• Their Facebook profile is new, has few friends, or contains minimal personal information.

Verify Payments Before Refunding Anything

1. Log in directly to your payment provider—such as PayPal or your internet banking—by typing the address into your browser. Do not click links in emails or messages.
2. Check that the funds have actually arrived and are marked as Completed or Cleared, not Pending or On hold.
3. Confirm the sender's name and amount match the agreed sale price exactly.
4. Wait for the payment to fully clear before handing over goods or issuing any refund. Cheques can take several days to clear and may be reversed later.
5. Never accept a screenshot or email as proof of payment. Scammers can easily forge these.

Report and Block the Buyer on Facebook

1. Open Facebook Marketplace and go to the conversation with the buyer.
2. Click the ... (more options) icon in the chat.
3. Select Report from the menu.
4. Choose Scam or fraud as the reason and follow the prompts to submit the report.
5. Return to the conversation, click ... again, and select Block to stop further messages.
6. If the item is still listed, go to your Selling tab, find the listing, and select Delete listing if you no longer wish to sell the item.

If You Have Already Sent Money or Goods

1. Contact your bank immediately using the phone number on the back of your card or from your banking app. Ask if the transaction can be stopped or recalled.
2. Report the scam to Scamwatch, run by the National Anti-Scam Centre.
3. If you believe your identity or banking details have been compromised, consider contacting IDCARE at idcare.org for free support.
4. Preserve evidence by taking screenshots of the conversation, the buyer's profile, and any payment confirmations.

Tip: Always meet local buyers in a public place and accept cash or a verified electronic payment before handing over goods. If a buyer is not local, use a secure marketplace with buyer and seller protection rather than arranging private payment.

Warning: Never refund an overpayment until the funds have fully cleared in your account. If a buyer sends a cheque for more than the asking price and asks for the difference back, the cheque is almost certainly fake and will bounce after you have sent your own money.

Need Further Help?

If you suspect you have been targeted by a scam or need help securing your business accounts, Open a Ticket with 220 Internet Services support.

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