Avoiding Paypal and Classified Ad Fraud

Avoiding Paypal and Classified Ad Fraud

Classified ad fraud and scams continue to run rampant.
The most common sources of classified ad fraud are craigslist, and backpage. it is quite easy to identify fraud attempts by the similar grammar and responses to classified ads. Most commonly are the phrases "I will like to buy..." and " what is the actual price" despite the price being listed in the classified ad.

the fraudster does not typically read the entire ad and simply mass responds to several classified ads in hopes of frauding someone out of their item.

The method used is as follows:
1) You ad is placed and a response is given.
2) Often, the fraudster offers to pay additional fees for shipping. So if your item is listed at $150, the fraudster will offer $300. The extra is to cover shipping charges
3) if you agree to the sale, the scammer will offer a paypal payment, or a fraudulent a money order.

a) The paypal account is likely to have been compromised and is essentially a stolen account, or a stolen credit card funding the paypal purchase.

b) The money is typically a very good counterfeit western union money order which will appear to be valid in every sense. Until several week pass at which point your bank will find out that it is indeed a fake - and will come after you to replace the value of the money order.

4) You would have already shipped the item to the fraudster.
5) you are now without the item, and owe the bank the value of the money order. You have no recourse, only to report the fraud to the local police. They can do nothing, so you lose twice - the money and the item.

Avoiding fraud is simple. Just follow these simple rules;

1) if it sounds too good to be true - it is.
2) Sell to local buyers only.
3) Ask the buyer for references - if they have ever bought and sold before; maybe an ebay account so you may check their feedback
4) if selling on ebay, verify the buyer's ratings and feedback score.
5) if using paypal to accept payments, make the sure purchase is eligible for 'paypal seller protection', and make sure the buyer has 'paypal verified' status
6) Try to ship top the same paypal address as listed on the paypal buyer profile.
7) if payment is received quickly, allow several days to pass 9 advise the buyer) that you must await paypal clearing the payment prior to shipping.
8) Accept international money orders only. Ask the bank to make sure it is a legitimate money order, if you have to wait several weeks, then so be it. Tell the buyer this fact in advance.