How to avoid online marketplace scams

As the popularity of online shopping has grown, so has the opportunity for marketplace fraud. Manulife Bank reveals the telltale signs of online scams and provides tips to help protect buyers and sellers.

Websites like Facebook Marketplace and Kijiji make it easy to connect with people looking to sell or buy anything from used baby items to waterfront real estate. It can be a great way to get good-quality merchandise for less than you’d pay in a store or find a new home for items you no longer need. However, not all advertisers are legitimate, and not all eCommerce sites are trustworthy.

In an online shopping scam, fraudsters trick online buyers or sellers into sending money or revealing sensitive personal and financial information.

Outside of social media sites like Facebook, also be on the lookout for fake eCommerce websites:

If you’re an online seller, watch out for marketplace e-Transfer scams, where a prospective buyer provides a fake link or QR code asking for personal information to facilitate payment. In reality, the scammer is attempting to steal sensitive information from you.

• Research the seller. Check the seller’s history, reviews and do a reverse image search to verify that the seller is trustworthy.

• Don't send money right away. Meet the seller in a safe public space and see the product in person before exchanging money.

• Avoid unfamiliar QR codes or URLs. These can be used to steal your personal information.

On eCommerce sites:

• Use only reputable eCommerce platforms. Established retailers have a proven track record, invest in data security and provide customer service support.

• Be skeptical of sites that appear unprofessional. Signs to watch for include poor design and excessive requests for personal information.

• Watch for unusual payment methods. Paying with cryptocurrency, wire transfers or prepaid gift cards may indicate a scam.

If you suspect an online scam, stop all communication with the scammer, report it to the police and relevant government agencies, and contact your financial institutions immediately to secure your accounts.

To help protect your personal and banking information, never share your PIN or online passwords, and monitor your banking and credit card accounts for any unusual activity. If you think you’ve been a victim of fraud, call the Manulife Bank Contact Center at 1-877-765-2265 for immediate action. To learn more about fraud and how Manulife Bank protects your privacy, visit our Fraud Prevention Centre.