Online Payment Scams: A Guide for Sellers on eBay, Facebook Marketplace, and Nextdoor

Spot the Scam: Don’t Fall for Fake Venmo and PayPal Emails When Selling Online

When it comes to selling online through platforms like eBay, Facebook Marketplace, or even Nextdoor, staying safe from scams is something to be on the lookout for. One prevalent tactic involves fraudsters impersonating trusted payment services like Venmo and PayPal.

The scam involves sending sellers fake Venmo or PayPal emails, claiming that funds are on hold or pending, and advising sellers to check their spam folders—a cunning move, as these emails are indeed spam and not from official sources.

The Fake Venmo and PayPal Email Scam: How It Works

1. Initial Contact: The scam begins innocently enough. You’re selling an item on Facebook Marketplace, and a potential buyer expresses interest. They strike up a conversation, asking about the item’s condition and location. Everything seems normal so far.
2. Too Good to Be True: Here come the red flags. The buyer offers to pay more than your asking price—often a sign that something is amiss. They may claim urgency, asking you to hold the item for them.
3. Payment Request: The scammer then asks if you accept Venmo or Zelle for payment. You provide your Venmo username, expecting a smooth transaction.
4. Fake Payment Email: Shortly after, you receive an email that appears to be from Venmo or PayPal. It states that the funds are either on hold or pending due to security reasons. The email instructs you to check your spam folder for further instructions.
5. Phishing Attempt: If you follow the instructions and click any links in the email, you’re led to a fake website that mimics Venmo or PayPal. Here, the scammer tries to steal your login credentials. They may even ask for additional personal information, claiming it’s necessary to release the funds.
6. No Real Transaction: In reality, no money was ever transferred. The scammer’s goal is to gain access to your Venmo account or PayPal login details.

How to Spot This Scam:

1. Check the Buyer’s Profile: Investigate the buyer’s Facebook profile. If it’s sparse or suspicious, exercise caution.
2. Unusual Overpayment: Be wary of buyers offering significantly more than your asking price.
3. Prepayment Before Viewing: Legitimate buyers usually want to inspect the item in person before paying. If someone insists on prepayment, be cautious.
4. Email Red Flags: Scrutinize any emails claiming to be from Venmo or PayPal. Look for poor image quality, grammatical errors, and unusual requests. Also check the reply-to email which typically doesn’t have venmo or paypal in the email address or it’s masked like [email protected] where venmo is disguised as a subdomain to a spammer domain. Look at the email headers also which will show more detailed info regarding the sender. Legitimate emails from Venmo or PayPal will originate from their official domains(e.g., @venmo.com or @paypal.com)
5. Verify Transactions: Always confirm payments directly within your Venmo or PayPal account before shipping any items.

Safeguarding Yourself

Protecting yourself from these scams requires an eye for details. When your red flag meter or alarm bells go off in your head, don’t ignore them. Here are key strategies to safeguard yourself and maintain pro-activity towards not getting scammed:

• Verify Through Official Channels: Always log in to your PayPal or Venmo account directly through the official app or website to verify payment receipts. Do not rely on email confirmations. (Do not click on the links from the spammed email) or if you do ensure a few things.
  • Make sure there’s an https: at the beginning of the url, this ensures it’s secured and encrypted. (This alone doesn’t guarantee it’s the legit site)
  • Ensure the domain ENDS in the domain it says it is. If it’s venmo it will end in venmo.com never venmo.somedomain.com or www.venmo14.com
• Use Platform Protection Services: When possible, use the marketplace’s own payment and shipping services, which often provide protection to buyers and sellers.
• Never Share Personal Information: Never share your login credentials, social security number, or bank account details through email or with anyone you don’t trust explicitly.
• Educate Yourself on Common Scams: Familiarize yourself with the tactics used by scammers and stay updated on new scams through official Venmo, PayPal, and marketplace community forums or help centers.
• Report Suspicious Activity: If you receive a suspicious email, report it to the official PayPal or Venmo support teams and the marketplace’s customer service. Reporting helps these platforms improve their security measures and warn other users.

Here are a couple reddit subreddits you can check out to learn more about the scams and how they operate.

• Venmo /r/venmo Current Venmo/Facebook Scam, Please be Aware
• Scams /r/scams Is this a Facebook Marketplace Scam? first time using facebook marketplace
• FacebookMarketplace /r/FacebookMarketplace

Remember:

• If something feels off about a potential buyer or the transaction process, trust your gut and err on the side of caution.
• Report any suspicious activity to the selling platform and consider filing a spam report for the fake email.

By following these tips, you can protect yourself from falling victim to these scams and ensure a safe and secure online selling experience.