Why Facebook Marketplace Is Failing
According to Facebook Marketplace users, the formerly simple procedure of buying and selling has become extremely complicated.
People who have shopped online have reported experiencing scams including fake listings, fraudulent payments, or subpar goods. Scammers frequently pose as “buyers” to trick unsuspecting vendors into giving over payment information or bombarding them with inquiries like, “Is this still available?” Hundreds of complaints from Facebook Marketplace users who claim to have been victims of fraud on the network are available in the Scam Tracker database of the Better Business Bureau.
Launched in 2016, the Marketplace part of the Facebook app allowed users to trade goods with each other in their local area. Since then, it has expanded into an online marketplace where items can be purchased from almost anywhere. Users, banking organizations, and online shopping specialists all agree that the service has gotten worse, even though it’s still useful for people selling their stuff and you may get good discounts on a daily basis.
According to Meta Platforms, the parent company of Facebook, it invests in systems that can identify fraudulent behavior and offers users protection from such schemes. (Here are some pointers.)
For several years, Peter Panduro, a software engineer from Sweden who is 32 years old, utilized Marketplace to sell a car, clear out his home, and get ready to move. Things had changed by the time he listed some photography gear for sale there in December. Panduro claimed that he did not receive local queries but rather suspiciously ambiguous and similarly worded communications from accounts all around the globe.
“As soon as you post anything, a deluge of spam messages from bots will hit you,” Panduro warned. “They never really get near me, and what they say is consistent across the board.” He is now selling on Blocket, a Swedish marketplace that verifies buyers and sellers, because he feels overwhelmed.
Facebook Marketplace was the starting point for 60% of all purchase fraud reports from TSB members in 2023, according to a January report. TSB is a retail bank based in Scotland with over five million clients. This figure doubled in a year. It cautioned that almost a third of the listings on the platform seem to be scams and urged Meta to provide further safeguards for users.
“Innocent consumers are too easily scammed by fake profiles, adverts and listings and lack protection,” stated Matt Hepburn of TSB Bank, who specializes in prevention of fraud.
The hazards of Facebook Marketplace have also been voiced by small U.S. institutions. They consist of Merrimack County Savings Bank in Concord, New Hampshire; United Bank & Trust in Marshalltown, Iowa; and Empeople Credit Union in Moline, Illinois. In 2023, the FTC estimated that social media scams were responsible for $1.5 billion in losses.
A mother from Novato, California, named Carol Johnson, who is 58 years old, saw her son fall victim to a laptop fraud. Despite the bank’s refusal to step in, she didn’t hold it responsible. Facebook was her “biggest issue,” she claimed. “By fostering this setting, you’re facilitating the growth of fraud.”
Thousands of products in their community are connected to Marketplace, a free service,” stated Daniel Roberts, a spokesperson for Meta. “To identify fraudulent activity, we invest heavily in review teams and specialized detection tools,” he added. In addition to partnering with law enforcement and pursuing legal action as needed, Meta offers ideas and resources to help individuals avoid frauds.
Neither the number of users nor the total number of listings on Facebook Marketplace were disclosed by the firm.
When Facebook Marketplace first started off, most purchases were made in person and paid for with cash. The ability to view the profiles of both buyers and sellers on Facebook made it stand out from rivals like Craigslist, according to delighted users.
Marketplace enabled online payments through PayPal and Venmo and additional shipping choices as it grew. They introduced Facebook Pay, formerly known as Meta Pay, in 2019. Meta does not profit from Marketplace transactions per se, but rather from advertisements and sponsored listings.
“Facebook Marketplace has become the biggest swap meet in the world,” commented Kevin Lee of the fraud-management business Sift. “That is why fraudsters find Facebook to be an especially lucrative platform.”
According to Lee and other experts in fraud protection, the lack of geographical restrictions has led to more complex distant scams, as well as an upsurge in the use of bots and automated schemes.
Automobile components, event tickets, and electronics are allegedly the most commonly conned goods since they are difficult, if not impossible, to verify immediately. Due of their great demand and resale value, Apple items are also popular.
Everyone wants to close the deal when they see a flashy thing, according to Lee. “All too frequently, they’re prepared to ignore a few warning signs.”
Irish software manager Matthew Zaradich, 41, wanted the large AirPods Max headphones from Apple but was put off by the $549 price tag. For $300, he discovered a pair on Facebook Marketplace.
After inspecting the headphones, he met with a youthful vendor in the heart of the city and paid for them using a banking app. But he took them to an electronics store after a day of fiddling with software problems and an uncomfortable fit. Those headphones weren’t real.
“It was completely violated,” Zaradich stated. He managed to get in touch with the vendor again and convince him to give him his money back. Some purchasers do not fare as well.
Bruce Anthony went out in January to get his girlfriend a rare Siamese kitten. Given that such animals often price upwards of $1,000, the 77-year-old from Bremerton, Washington, felt pulled to a $400 listing. In return for a $100 Amazon gift card, the vendor agreed to hold the kitten for you.
After seeing the seller’s pickup location in a nearby town, Anthony felt reassured, even if he found it weird. His girlfriend and he got in his pickup, went to the address, and he messaged the seller to let them know they were outside after sending the payment.
Respondence from the vendor ceased. The victims of the scheme became aware of it.
The address must have been something he pulled from the phone book, Anthony remarked. He reported the fraud to Meta and Amazon, but neither company refunded him. To this day, he looks for felines on Facebook Marketplace. “Just that I’m much more cautious,” he remarked.
For vendors, it might be an equally difficult scenario. A 41-year-old entrepreneur from Austin, Texas named Hira Saeed sold a couple a bed and mattress. She went out of her way to assist them in loading it onto their vehicle when they returned to retrieve it. Presumably depicting a $200 Zelle payment, they presented Saeed with a screenshot.
It turned out to be a fraud. Unfortunately, Saeed never got the money, and the buyer even blacklisted her from Facebook.
She was allowed to use Saeed’s Facebook profile for sleuthing by her husband. An invitation for a baby shower had the couple’s address and phone information, which she used to track them down. She got in touch with them. They finally paid.
“They seemed like any ordinary couple from next door,” Saeed remarked, “but their behavior revealed they were experts in this con.”
There are a great many genuine Facebook users.
Facebook Marketplace’s massive size and range of products mean that consumers are still able to buy and sell successfully despite the growing number of obstacles.
A public health specialist named Morgan Johnson, 33 years old, successfully traversed its intricacies in the lead-up to her January relocation from Atlanta to Detroit.
Accounts created that month, profiles without photos, and purported purchasers requesting to switch to email communication plagued her as she tried to sell IKEA furniture and other things. In spite of all those “interested buyers” who were probably just trying to scam her, she sold most of her items in a week.
“Facebook has a lot of genuine individuals,” Johnson remarked. “A lot of things need to be ignored as you sort through.”
Methods to Stay Safe on Facebook Marketplace
According to experts in fraud prevention, following these steps will help reduce the likelihood of becoming a victim when shopping on the platform:
- Pay using safe methods. Opt for payment methods like credit cards, which offer security features and allow for traceable purchases. Stay away from gift cards.
- People’s profiles should be checked. Look for indicators of credibility in the seller’s or buyer’s profile, such as the amount of time it has been active and the number of reviews it has for transactions.
- Gather together in a public place. Be cautious to only trade money and products in secure areas while making an in-person handoff.
- Look over listings carefully. Watch out for warning signs, such as extremely cheap pricing, unclear descriptions, or high-pressure sales tactics, and be critical of the listings at all times.
- Keep deposits for expensive things out of the mail. Meet in person, check receipts, or use video chat to ensure high-priced things are legitimate before submitting payment.
- Check everything before you pay. Before you hand over the cash, make sure everything is in working order. Check all packaging for indications of fraud or manipulation.
