Key Takeaways
- Social media scam losses reached $2.1 billion in 2025, an eightfold increase since 2020, according to FTC data.
- The overpayment scam is one of the most commonly reported Facebook Marketplace frauds.
- Another scam attempts to sell you a fake “business account upgrade” email that impersonates Zelle or Venmo to trick sellers into sending money.
- Facebook’s Purchase Protection only covers transactions made through its own checkout. Transactions made with cash, Venmo, and Zelle are not covered.
If you’ve bought or sold anything on Facebook Marketplace lately, you’ve probably also heard about the dangers. Scammers have built large operations around exploiting the platform’s users.
Are you buying or selling?
When Peer-to-Peer Payments Work in a Scammer’s Favor
The moment a transaction moves off Facebook’s own checkout and onto a payment app like Venmo, Zelle, or Cash App, you lose essentially all financial protections for that purchase. According to Facebook’s guidance, eligible purchases made through its official checkout are covered by Purchase Protection.
But items exchanged in person for cash, or paid for through a P2P app, aren’t covered at all. AARP reported on a Texas retiree who lost $4,200 buying furniture this way: she paid through an app the seller chose. The money left the victim’s account, but the furniture never arrived. The fact that the seller was insisting on a specific payment method is a huge red flag when the payment method strips all the buyer’s protections away.
If You’re Selling
The overpayment scam
A buyer sends what looks like payment for more than your asking price, then asks you to refund the difference. Here’s the problem: The original payment was not real. There are a couple of ways that scammers try this.
One method is to send funds that appear in your account before they clear. Victims see their balance rise as a result of the uncleared payment and can easily be tricked into thinking everything is aboveboard. If they send some money (which will never clear) back to the scammer, that real money is lost forever when the financial institution deducts the bad payment or check from your account.
Another way is to send victims a fake screenshot confirming the payment, or a fraudulent confirmation email to trick the recipient that money was actually sent. Then, when the victim sends back the “extra,” the scammer keeps the real money you sent to them.
The “business account upgrade” scam
A fraudulent buyer messages a seller, agrees to the full asking price without any negotiation, and offers to pay through Zelle or Venmo. Shortly after, the seller receives an email that looks like it’s from the payment app, saying your account isn’t set up to receive business payments. The supposed solution is for the buyer to send extra money, which you are requested to return. This is, of course, a scam. Neither the original payment nor the “upgrade” fee is real, but the money you send to the scammer is.
Bad cashier’s checks
For higher-value items, some buyers pay with a cashier’s check that boosts your balance initially, then bounces days later, after you’ve already handed over the item.
Pressure to leave Facebook
If a buyer pushes to continue the conversation over text, email, or another app, that’s a deliberate move to get outside of Facebook’s recordkeeping and reporting tools. Some sellers have also reported being contacted about a Facebook listing through an Instagram DM instead. If you are selling or buying on Facebook, try to keep all your messaging inside of Facebook.
If You’re Buying
Items that never arrive
A listing shows an attractive item and the fraudulent seller insists on payment before shipping or before you can view it in person. Roughly one in six UK Facebook Marketplace users reported being scammed this way, most often through fake or nonexistent profiles.
Stolen photos
Scammers frequently lift real product photos from other listings or retail sites. A reverse image search can sometimes reveal that a “unique” item photo has appeared identically elsewhere.
Pet and rental scams
There are two specific patterns that are especially worth watching for. One is listings for pets (that don’t exist) with a deposit required to hold the imaginary animals for you, and rental listings with suspiciously low rent from a fraudulent landlord who’s conveniently out of the country and can’t show the property in person. Treat any pet listings or especially low rental listings on Facebook as likely scams. They aren’t all scams, but it’s a much better strategy to start with a very high level of suspicion, or to do your pet and rental shopping elsewhere.
New or AI-generated profiles
We recommend checking how recently a profile was created and looking closely at the photo. AI-generated faces often look perfect or polished, and running a reverse image search can catch a stolen photo. Check to see if they have any history of buying or selling on Marketplace, as well. No history is a bad sign.
Payment Method Red Flags
- Any request to refund a supposed “overpayment.”The best rule is, simply don’t do it. If there truly was some mistake that you believe you should rectify, do NOT do so before you’ve confirmed the original payment actually landed in your account. Don’t accept a screenshot, an email, or any other message as proof! You are still very likely dealing with a scammer. If you received the payment to your checking account, make sure to call your credit union to confirm the payment has cleared before taking any action at all
- Requests to pay with gift cards, wire transfers, Zelle, Venmo, Cash App, or cryptocurrency. These are the payment methods scammers favor because they’re often impossible to reverse
- Emails claiming a payment app needs an “upgrade” or “verification fee” before releasing funds. Do not believe it
- A buyer offering full price or more without negotiating, asking no questions about the item, or responding within seconds of your post going live. Assume this is a scam as well
Red Flags Checklist
- Buyer or seller pushes to move the conversation off Facebook Messenger, especially to Instagram, text, or email
- You’re asked to refund money before confirming it actually arrived (or cleared) in your account
- Payment is offered via gift card, wire transfer, cryptocurrency, or a peer-to-peer (P2P) app like Zelle or Venmo
- The profile is new, has little activity, or its photos are stolen or AI-generated
- A cashier’s check is offered for a high-value item. Call Latitude 32 Credit Union to verify the check clears before passing off the merchandise to the “buyer”
- The buyer or seller is unusually eager, offers to overpay, or pressures you to act immediately
What To Do If You’ve Been Targeted
- Stop communicating with the buyer or seller immediately. Don’t send any more money or information.
- Verify directly in the app, never through an emailed link or screenshot, before you consider any payment legitimate.
- Contact Latitude 32 if a payment app tied to your account was involved, so we can help monitor for further activity — call us at (843) 556-4809.
- Report the account to Facebook, using the reporting tools on the listing or profile.
- File a report with the FTC at ReportFraud.ftc.gov.
Frequently Asked Questions
What is the Facebook Marketplace overpayment scam?
A buyer sends a fake (or reversible) payment for more than the asking price, then asks the seller to refund the difference. The original payment isn’t real, but the refund is, and it is deducted entirely out of the seller’s own pocket.
Is Venmo or Zelle safe to use with a stranger on Marketplace?
Both apps work like cash. That means once the money is sent, it’s very difficult or impossible to reverse or recover. They’re designed for people who already know each other, not for transactions with strangers.
Should I ever refund a buyer who says they overpaid?
Probably not. Instances like these are almost entirely scams. Real buyers are very careful not to overpay. Certainly, you should not do anything without independently confirming that the extra money is really sitting in your account. Screenshots and emails claiming proof of payment can be faked, and payments can appear to be in your account only to bounce days later when they fail to clear. Be very wary and call your credit union if anyone claims to have overpaid you.
Does Facebook Marketplace offer buyer or seller protection?
Only for transactions completed through Facebook’s own checkout system. Cash exchanges, in-person deals, and payments made through outside apps like Venmo or Zelle aren’t covered.
Why would a Marketplace buyer contact me on Instagram instead of Facebook Messenger?
Some scammers deliberately shift the conversation to Instagram because it still counts as moving off the Facebook platform, though it still feels safe to the potential victim.
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