Scams
Here’s how to spot and dodge scams when searching for stuff on the classified ads website that offers almost everything under the sun
12 Aug 2024
•
,
5 min. read
People have been buying and selling items on Craigslist for nearly three decades. As a platform for digital classified ads, its utility is still second to none for many people. But its simplicity (and anonymity) can also create risks that are, in many respects, equal to, if not more acute than with, those on online marketplaces such as Facebook Marketplace.
Indeed, there’s little in the way of protection from scammers, who might sell you items that don’t exist or try to harvest your personal information for use in follow-on fraud. Alternatively, they may try to buy items you’re putting up for sale using fraudulent payment methods.
It pays to stay aware of both old and relatively new tricks they’re using to do so. Look out for the following warning signs.
Common Craigslist scams to avoid
1) Non-existent items
There’s a whole category of Craigslist scams that revolve around a fraudster claiming to sell something they don’t have in their possession. It could be a ticket to a show, a car, a pet, an apartment or holiday rental, or even a job listing. They’ll usually draw victims in by either creating a sense of urgency (i.e., a ‘last chance to buy’ a sold-out gig ticket) or by advertising an item for much lower than its face value.
They want either full payment, or a downpayment on an expensive item, via a payment method that is hard to trace, and even harder for you to get reimbursed (i.e., wire transfer, crypto, Zelle, Venmo, Cash App, etc). In the case of job listings, they may ask you to pay for training or equipment up front, and could also request you hand over sensitive personal/financial information. They may also use fake third-party sites to add legitimacy to a fake item scam.
Be alert to these warning signs, only pay for items via secure payment methods, and never pay for a high-value item before seeing it in person first (including property rentals).
2) Overpayment
A buyer sends you a check for an item, but it’s for more than the purchase amount. They urgently request you pay them the difference via wire transfer or a similar method. However, in the meantime, the check bounces, leaving you out of pocket.
Always wait for any check payment to clear before refunding any money, or sending your goods.
3) Google Voice scam
A buyer might claim to want to verify your identity before they purchase online – and send you a six-digit Google Voice verification code to do so. They will request the code when it is sent to you.
In reality, it’s not authenticating you, but instead allowing the scammer to set up and authenticate a Google Voice account associated with your phone number. They can then use your phone number to scam others.
Never send an unknown buyer a Google Voice verification code.
4) Phishing scams
Scammers have various tried-and-tested tactics designed to trick you into handing over personal and financial information (known as phishing). They may send an email purporting to come from Craigslist itself offering certification, purchase protection or some other type of ‘guarantee’. Clicking through will take you to a phishing site designed to harvest your information. They might also use fake ticketing or e-commerce sites as part of a non-existent item scam.
Never trust unsolicited emails and if a seller takes you to a third-party site, be wary of entering any personal or financial details. Check for spelling mistakes or strange URLs.
5) Bouncing checks
Some buyers want to pay by cashier’s check. But this should be a red flag as these non-digital payment methods are easier to fake than you might think.
Avoid anyone wanting to buy an item you’re selling on Craigslist via cashier’s checks. Or tell them you’ll only send the item once the check clears. And definitely never send an item before the check arrives.
6) Fake escrow
An escrow company is an independent third party that holds the funds when two entities transact. Unfortunately, scammers have worked out a way to game this system, by creating their own fake escrow sites.
Whether buying or selling, the scammer might claim they want to use a specific escrow site to insulate themselves from fraud. But all it will end up doing is stealing your money and/or harvesting your personal and financial information.
Always research the escrow site if suggested by a buyer/seller on Craigslist or suggest one of your own.
How to avoid Craigslist scams
Understanding what the most popular scams look like on Craigslist is a giant step towards staying safer on the site. Heed the above warning signs, such as outrageous bargains, sellers who try pressure tactics or who are evasive about the item for sale, buyers that want to pay via check or who overpay, and individuals sending Google Voice ‘verification’ numbers.
Also consider:
- Requesting to see a high-value item for sale in person (ensuring you are in a public space and are accompanied)
- Using secure payment methods like credit cards, even disposable ones, instead of paying via gift cards or cryptocurrency, two methods that are popular among fraudsters but difficult to trace and recover
- Being skeptical of third-party sites
- Refusing to share any personal or financial information in your communications with sellers and buyers
- Using disposable phone numbers and email addresses so that you further protect your main contact information. (Craigslist uses two-way email relay to hide your email address when communicating with buyers or sellers).
If you got scammed on Craigslist
In the event of a worst-case scenario, keep calm. Consider the following:
- Report the scam to the FTC (if you’re based in the US) and/or the FBI’s Internet Crime Complaint Center
- Keep a close eye on your bank and credit accounts and flag if there’s any suspicious activity
- Tell Craigslist that the listing was a scam, by clicking on the red flag icon and submitting a report
- File a report with the police
Craigslist can be a great resource. But the price we pay for convenience is having to navigate the darker side of the digital world. Stay safe.