Online marketplaces make it easier than ever to buy and sell everything from furniture and electronics to vehicles and collectibles. Unfortunately, they've also become a popular target for fraudsters. Whether you're shopping on Facebook Marketplace, Kijiji, eBay, or another online platform, knowing how marketplace scams work can help you protect your money and personal information.
Here's a few tips for how to recognize the most common marketplace scams in Canada—and what you can do to avoid becoming a victim.
Marketplace scams occur when criminals use online buying and selling platforms to trick people into sending money, sharing personal information, or handing over valuable items without receiving what was promised. Scammers often rely on urgency, fake identities, and deals that seem too good to pass up.
One of the most common scams involves fake listings for products that don't actually exist. Scammers often advertise popular items at unusually low prices to encourage buyers to act quickly. After receiving payment, they disappear without shipping the item.
Red flags:
If you're selling an item, a scammer may send a fake cheque or claim they've accidentally overpaid you. They'll ask you to refund the difference before the original payment clears. Once the payment is found to be fraudulent, you're responsible for the money you refunded.
Fraudsters may claim they have already sent an Interac e-Transfer® payment and ask you to click a fake deposit link. Others may send fake payment confirmation emails that appear legitimate. Always verify payments directly through your online banking before releasing an item.
Scammers may send links pretending to verify your account or confirm a shipment.
These links often lead to fake websites designed to steal:
Never log in through links sent by strangers.
Some fraudsters convince buyers or sellers to ship items before payment has been confirmed. Others ask to communicate outside the marketplace platform to avoid buyer protections. Whenever possible, use the platform's official messaging and payment tools.
Luxury goods, electronics, designer clothing, and event tickets are frequently counterfeited. If the price seems dramatically lower than retail, there's a good chance the item isn't authentic.
Taking a few extra precautions can significantly reduce your risk.
Before completing a transaction:
Whenever possible:
If meeting in person:
Some police services offer designated safe exchange zones for online marketplace transactions.
Be cautious of:
Never share:
If you believe you've been the victim of a marketplace scam:
If you've shared banking information or sent a payment, contact your financial institution as soon as possible. Acting quickly may help limit financial losses.
Report the incident to:
Reporting scams helps protect others and allows authorities to track emerging fraud trends.
If you clicked a suspicious link or shared login credentials:
Follow these best practices every time you use an online marketplace:
Online marketplaces are a convenient way to buy and sell, but scammers are constantly developing new ways to deceive buyers and sellers. Staying informed, verifying payments, protecting your personal information, and using secure payment methods can significantly reduce your risk of fraud.
At YNCU, helping our members recognize and prevent fraud is part of our commitment to your financial well-being. If you believe you've been the victim of a marketplace scam or your banking information has been compromised, contact our Service Excellence Centre immediately at 1-800-413-YNCU (9628). You can also report fraud to the Canadian Anti-Fraud Centre.