How to shop safely on online marketplaces and avoid being scammed

Gone are the days of garage sales. These days, when we want to clear out our closets or find a bargain second hand, we turn to online marketplaces. And, while we're not inviting strangers into our front yards to rifle though our things, online buying and selling brings a different set of risks – ones that aren’t always easy to spot. 

In 2025 alone, more than 44,000 buying and selling scams were reported to Scamwatch, with Australians losing more than $25.5 million as a result.  

But why are they so prevalent and how do you stay safe? Let’s take a look. 

What is a marketplace scam? 

A marketplace (or shopping) scam is a type of buying and selling scam where a scammer pretends to be either a buyer or a seller to steal your money. On online marketplaces, this could involve either setting up a fake profile or making fake listings for products that either don’t exist or aren't what they appear to be.  

What does a marketplace shopping scam look like? 

In traditional shopping scams, scammers often pose as well‑known businesses, using fake websites that look legitimate at first glance. 

Online marketplaces (such as Facebook Marketplace, Gumtree, ebay, Depop, or Poshmark) can be trickier. You’re not buying from a retailer you know – you’re usually dealing directly with individuals you’ve never met. That makes it harder to tell who’s genuine.  

Some marketplaces, like eBay and Amazon, offer ‘buyer protection’. For others, like Facebook Marketplace, for example, that protection is limited to only certain types of transactions. 

What should I look out for?

It’s not always easy to tell whether a profile is legitimate.

However, certain warning signs can help you assess whether the person you’re dealing with is who they say they are.

A good rule of thumb for both buyers and sellers is, ‘If something seems too good to be true, it probably is’ -- particularly for high-demand items like concert tickets, expensive electronics or cars, and even pets.  

How can I protect myself from marketplace scams?

The best way to protect yourself is to slow down and keep an eye out for red flags and warning signs – especially if a transaction feels rushed or unusual.  

For large purchases, in particular, it’s always safer to see what you’re buying in person before you pay for it.  

However, with smaller purchases that are likely to be sent through the post, that’s not always possible. Sometimes you’ll need to pay before the seller can send it. In those instances, it's always worth checking their profiles to see if they've sold things in the past and to see if they have any reviews.  

Profiles on Facebook Marketplace are linked to personal accounts. You can always click through to their profile to get a better sense of whether a person seems legitimate.  

Use secure payment methods like Paypal, which offers buyer protection, whenever possible, and always keep communication within the platform. 

If paying with PayID or by bank transfer, make sure the name matches the person you think you’re paying. Banks will often confirm that the payee details match when doing a bank transfer.   

If you’re selling, make sure the payment has cleared in your account before you send the item.

What do I do if something feels off when I’m trying to buy something from an online marketplace? 

If you’re buying or selling something and you feel like something isn’t quite right, stop the transaction and, if necessary, report the scam to the platform you’re using and to Scamwatch.  

Scamwatch will then be able to investigate the potential scam and, hopefully, help others avoid the same or similar scams. 

What if I’ve already paid the seller or sent the product to the buyer? 

If you’ve already sent money to a seller you suspect is a scammer, or have already shipped the package, it’s important to act fast to stop any further losses. 

Get in touch with your bank or card provider immediately to report the scam. Then, ask them to stop any transactions that are still pending.  

While you should never give anyone your personal details, if you think there’s any chance they may have somehow gotten access to them, change your passwords immediately. This is particularly important for things like banking, your email, government websites, and anywhere you use your bank or credit card.  

If you need help with any identity protection, IDCARE, Australia and New Zealand’s national identity and cyber support service, offer a free service where they can help you make a plan to minimise any damage.  

Then, once you've done the above, report the scam to Scamwatch.  

Is it safer to avoid shopping through an online marketplace? 

Avoiding online marketplaces altogether isn’t necessary, as many people buy and sell safely every day. While there are risks involved, being aware of common scams, staying vigilant and trusting your instincts can help you shop with confidence. 

There are plenty of benefits to online marketplaces too.  

Shoppers can find unique and interesting things, which can often be cheaper than in more traditional shops, and sellers can clear out their closets and make some money while they're at it.   

Online marketplaces are also good for the environment as they encourage recycling and reuse and reduce how much ends up in landfill.  And, as an added bonus, when you sell through an online marketplace, you don’t need to invite strangers into your garage or front yard or put posters up on the neighbourhood trees.  

Where can I go to get scam help? 

If you suspect a scam or an online purchase goes wrong, don’t try to handle it alone. The Australian Cyber Security Centre and Scamwatch have dedicated resources on shopping scams. You can also call your bank and your business insurance provider if you’re worried about a breach. 

If you believe your AMP bank account or superannuation has been compromised, alert us immediately.  

AMP Bank customers can call 13 30 30.  

AMP Bank GO customers can message us 24/7 in the app.  

AMP Super members  can call 13 12 67