Identity theft is rampant in online marketplaces and Facebook Marketplace is no exception. Scammers are taking over legitimate user accounts to add authenticity to their scams.
Paying with instant transaction services is the easiest payment method. There are many well-known peer-to-peer money transfer services, such as Venmo, that are used on Facebook Marketplace. But they carry some potential danger for their users.
In this article, we’ll talk about the most common Venmo scams and how to prevent them.
Is it safe to use Venmo on Facebook Marketplace?
The “buyer” on Facebook Marketplace requests to pay with Venmo. If the seller agrees, payment is made in several installments and costs less than $100. Naturally, the seller does not suspect the buyer once the money starts arriving.
But because these transactions are irreversible, they are ideal for a variety of scams. If you sell something on Facebook Marketplace, beware of potential scammers posing as interested buyers. To avoid becoming a victim of the same malicious practices, you should educate yourself about the tricks used on Venmo.
Sell something to a complete stranger
Always check who you are selling to on Venmo. Scammers may ask you to provide them with goods or services without making a legitimate payment. They may send you screenshots of fake emails or use stolen bank account or credit card information. They could also claim that they have sent you a payment that will not be transferred to your Venmo account until you ship the item and post shipping instructions.
Pay more for a product
A common scam on Facebook Marketplace involves the buyer sending the seller a fake check for an amount greater than the final transaction price. For example, they send you $250 even though the products you sell only cost $200. Scammers claim that this is a mistake or that the money is for shipping. They will then try to convince the seller to use Venmo to refund this overpayment. If the seller falls for it, he will send money to the scammers, only to have the first check bounce.
A trading account update
When purchasing something from you, a scammer may request payment through Venmo. After obtaining your email address, they will send you a fake response posing as the payment gateway.
The email informs the recipient that the buyer used a merchant account to send the payment. Therefore, the buyer will need to pay an additional fee to receive payment. They then ask you to upgrade your account and refund the supposed upgrade fee to the customer. Of course, you are motivated to complete this as soon as possible to receive the next payment.
Additionally, the scam email will put pressure on the seller to send the money immediately. Many people make the mistake of not verifying the authenticity of the email.
When the seller returns the excess funds, they realize that the scammer never sent any money. Unfortunately, the scammer had disappeared at that time.
How to avoid Venmo scams
There are several ways to avoid scams on Venmo:
- Never trust someone willing to overpay you. Buyers offering you more than the asking price should be a cause for concern, unless your item is rare and in demand. If someone sends you more money than you requested, take it as a warning sign.
- Double-check email addresses. Check the email address if you think you received a message from Venmo or another payment app. Scammers use fake email addresses that look like legitimate ones.
- Know the terms and conditions of paid apps before using them. If someone says that you need a merchant account to accept payments, you can confirm this by visiting the app’s official website or contacting customer support. To deceive their victims, scammers often create fake insurance policies.
- Report scams to Facebook Marketplace. Report a seller who is trying to commit fraud. Your report can serve as protection for other gullible sellers.
- Limit your transactions to people you know and trust. Always check a person’s profile or contact them to find out if a strange request you received from someone is legitimate.
- Don’t click on links in emails or text messages you receive out of the blue. These links are usually scams.
- Never enter your Venmo login details anywhere other than Venmo.com and the Venmo app. You could end up typing your login information into a third-party app that will steal your personal information.
- Do not share Venmo account information on social mediaexcept official Venmo accounts.
Additional FAQs
You’ve been scammed: now what?
• If you believe you are a victim of a Venmo scam, you should notify Venmo Security Support immediately. Stop communicating with the scammer.
• If you have experienced a financial loss, you must notify the Federal Trade Commission (FTC) and the Internet Crime Reporting Center (IC3).
• You need to change your Venmo account password.
• You should also take precautions to protect your other accounts. Choose a special password with 12 characters or more. Use a different password for each account. Save all your passwords in a password manager.
• Invest in a secure phone to avoid future security problems.
Can I get my money back?
If you are a victim of a scam, you will want to get your money back as soon as possible. Unfortunately, it is not possible to cancel a payment made to an existing Venmo account, whether it is part of a scam or not. The usual practice is to send a refund request to the account you sent the money to and then wait to be refunded. Venmo support can only undo a payment if the recipient agrees, if their account is in good standing, and if the money is still available. Venmo support cannot reverse payment at the sender’s request.
Stay safe and aware
Venmo allows friends and family to send money to each other. Their accounts are not intended to be an online payment solution for small businesses. But you can still have a good time shopping on Facebook Marketplace with the convenient payment service that Venmo offers. That, of course, is assuming you know the tricks scammers use to defraud you. Before making an irreversible decision to send money to a potential scammer, check with your bank or the Venmo app.
