How to spot and avoid Offerup scams

Ever found a “mint condition” iPhone 14 Pro listed for $300 on OfferUp? Before you rush to message that seller, let’s talk about why deals that seem too good to be true usually are.

According to the Federal Trade Commission’s 2023 Consumer Sentinel Network Report, marketplace scams cost Americans over $440 million in 2023, with mobile marketplace apps being prime targets for fraudsters.

Read on for tips and tricks to spot those scams and protect yourself.

Common scam patterns to watch for

According to OfferUp’s 2023 Trust & Safety Report, these are the most frequent scam patterns:

  1. The gift card hustle: This scam typically targets buyers. The scammer convinces the buyer to pay using gift cards, claiming it’s for “security purposes.” Once the buyer provides the gift card information, the scammer quickly uses the funds, leaving the buyer without the purchased item and no way to recover the money.
  1. The fake verification code: This scam involves requesting the victim to share account verification codes, often under the guise of confirming the victim’s identity. Once the scammer has these codes, they can gain access to the victim’s account, change passwords, and potentially access personal and financial information.
  2. The fake tracking number: In this scam, the scammer provides the buyer with a fake tracking number after receiving payment. The tracking number might link to a sophisticated fake tracking website that appears legitimate. The buyer believes the item is on its way, but it never arrives. The average loss of $575 per incident occurs because the buyer has already paid for the item, and the scammer disappears with the money. This scam exploits the buyer’s trust in the tracking process, making it difficult to realize the fraud until it’s too late.

Red flags that scream Scam!

The unbelievable price tag

When a seller lists a $1,200 phone for $300 or a $2,000 MacBook for $500, your scam radar should start beeping. According to OfferUp’s Trust & Safety Guidelines, dramatic price reductions are the most common indicator of fraudulent listings.

Warning signs:

  • Prices significantly below market value
  • High-end items priced suspiciously low
  • Sellers claiming they “need to sell fast”

The overpayment trick

Sellers watch out for this one because the Better Business Bureau’s 2023 Scam Tracker reports that overpayment scams remain one of the top three marketplace fraud tactics, with an average loss of $750 per victim.

How it works:

  • Buyer ‘accidentally’ pays more than the asking price
  • Sends a fake check or payment confirmation
  • Asks you to refund the “extra” amount
  • The original payment bounces, and you’re out the overpayment that you refunded, leaving you at a loss.

Note that buyers offering to pay more than the asking price is also a red flag. They are trying to tempt you with more money but will often send a fake payment to get the item for free.

The shipping shuffle

“I’m out of state, but I’ll pay for shipping!” This scam is a common tactic where the buyer claims they can’t meet in person and offers to cover shipping costs. While this might seem convenient, it’s often a red flag for fraudulent activity. The Internet Crime Complaint Center (IC3) reports that shipping-related marketplace scams increased by 72% in 2023 compared to the previous year.

Common tactics:

  • Insisting on using their own shipping service or shipping through a different platform than OfferUp
  • Saying they will pay for shipping but then sending a shipping invoice
  • Promising to pay after you’ve shipped the item

Latest scam trends

The BBB Scam Tracker has identified these emerging threats:

  1. AI-generated fake listings
  • Scammers using AI to create realistic fake product images
  • Multiple angles of non-existent items
  • Perfect-looking but counterfeit products
  1. QR code scams
  • Fraudulent QR codes for payment
  • Links to fake payment portals
  • Malware distribution
  1. Verification code interception
  • Sophisticated phone number spoofing
  • Two-factor authentication bypasses
  • Account takeover attempts

How to protect yourself

Before the meetup

  1. Check the profile thoroughly:

According to OfferUp’s internal data, accounts less than 30 days old are 5 times more likely to be associated with fraudulent activity.

  • Look for the “TruYou” verification badge
  • Review seller ratings and join date
  • Be wary of newly created accounts
  1. Stay in the app:

The FTC Consumer Protection Data Spotlight shows that 89% of marketplace scams begin with communication outside the platform.

  • Keep all communications within OfferUp
  • Treat all requests to move off the platform – for communication, shipping or payment – as a red flag
  • Never share your phone number or email
  • Avoid clicking on external links

During the transaction

  1. Meet safely:

The National Sheriffs’ Association Safe Trade Station Initiative reports that transactions conducted at designated safe zones have virtually zero reported incidents of robbery or fraud.

  • Choose official safe exchange zones
  • Bring a friend
  • Meet during daylight hours
  • Trust your instincts
  1. Verify before buying:

According to the FBI’s Digital Defense Report 2023, electronics are the most commonly counterfeited items on marketplace apps, accounting for 43% of reported scams.

  • Test electronics before paying
  • Check items thoroughly for damage
  • Compare serial numbers if applicable.

Payment safety

The Federal Reserve’s 2023 Payments Study shows that cash remains the safest payment method for in-person marketplace transactions, with virtually no risk of payment reversal scams.

Do:

  • Use cash for local transactions
  • Use OfferUp’s built-in payment system for shipping
  • Meet at a bank to verify large cash payments
  • Get a receipt for expensive items

Don’t:

  • Use wire transfers or gift cards
  • Accept checks or money orders
  • Pay before seeing the item
  • Send down payments or deposits to “hold” items

What to do if you’re scammed

The FTC’s Consumer Response Team reports that victims who take immediate action recover funds in up to 17% of cases.

  1. Report immediately
  • File a report with OfferUp
  • Contact your local police
  • Submit a complaint to the FTC
  • Document everything
  1. Protect your accounts

According to Identity Theft Resource Center, taking these steps within 24 hours increases recovery chances by 40%:

  • Change all passwords
  • Monitor bank statements
  • Alert credit card companies
  • Check credit reports

Prevention checklist

Based on OfferUp’s Security Best Practices:

  • Meet in safe locations (preferably official safe zones) 
  • Verify items before payment 
  • Use cash for local deals 
  • Trust your instincts 
  • Keep communications in-app 
  • Never wire money or use gift cards

Final thoughts

Remember: Every legitimate seller will understand and respect your safety concerns. According to the FTC’s Consumer Sentinel Network, taking an extra 10 minutes to verify a transaction can prevent 90% of marketplace scams.

Stay safe, stay smart, and remember: If a deal seems too good to be true, it probably is.

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