Member guide · Read a preview, full guide with Personal

Facebook Marketplace scams: fake payments, overpayments and “verification codes”

Selling or buying on Facebook Marketplace? How the fake payment, overpayment, verification code and PayID “upgrade” scams work, the warning signs, and what to do if you paid.

Online marketplaces are a great way to sell the old couch or pick up a cheap bike, which is why scammers love them too. Some pretend to be buyers to get your money or your item. Others post things that don’t exist and ask for a deposit. Here are the tricks to know, from the FTC, the CFPB and Australian consumer agencies.

Scams that target sellers

  • Fake payment notices. The “buyer” insists on paying through an app, then sends a fake payment notification and hopes you hand over the item before you check (FTC).
  • “I paid you twice.” They claim a payment went wrong and ask you to refund one of them (FTC).
  • Overpayment. They send a check or money order for more than your price and ask you to send back the difference. The CFPB calls this a common scam and says not to send any money to the buyer (CFPB, FTC).
  • Verification codes. They say they want to “make sure you’re real” and ask you to read back a code sent to your phone (FTC).
  • PayID “upgrade” emails (Australia). A fake email that looks like it’s from PayID says your account must be upgraded to a business account, and the buyer asks you to reimburse the fee (WA ScamNet).

Unlock the full guide with ImposterWatch Personal, US$9/mo

Members read every guide in full, plus get breach and dark web alerts for up to three email addresses, an AI-powered romance scam check every month, and account recovery help.

Start 7-day free trial, then US$9/month, cancel anytime Already a member? Log in

Not ready? Get free scam alerts

Signing up doesn’t unlock this guide. See our privacy policy.

Scams that target buyers

  • Items that don’t exist, often priced well below market, with a seller who wants a deposit before you can see them. Scamwatch says to always inspect a product before paying, especially big items like cars, boats or caravans (Scamwatch).
  • Requests to pay outside the marketplace, by bank transfer, gift cards, wire or crypto. The FTC says paying that way is like sending cash, and you lose any protection the site offers (FTC).
  • A payee name that doesn’t match the person you’re dealing with. Scamwatch says if it doesn’t match, don’t pay (Scamwatch).

Warning signs

  • They agree to your price without seeing the item, or can’t come in person and are sending a “courier”.
  • They want to move the chat to text, WhatsApp or email.
  • Anything involving a refund, overpayment, upgrade fee or code.
  • Pressure to decide or pay right now.

Safer ways to buy and sell

  1. Meet locally in a public place and, where you can, deal in cash or the platform’s own payment system (FTC).
  2. Confirm money has arrived by logging in to your bank or payment app yourself, not through a link they send.
  3. Never deposit a check for more than the selling price (FTC).
  4. Check the person’s phone number with the free phone scam check.

If you already paid or sent money

  1. Call your bank or card issuer on the number on your card and ask them to stop or recall the payment. If you paid by card, ask about a dispute (FTC).
  2. Report the profile and listing to Facebook.
  3. Expect “recovery” offers afterwards. Those are scams too.

Where to report

Questions

The buyer sent a payment email saying my account needs upgrading. Is that real?

No. Australia’s WA ScamNet describes this exact trick: a fake PayID email says your account must be “upgraded” and asks you to reimburse the buyer first. Genuine payment services don’t ask sellers to pay to receive money.

The check cleared at my bank. Isn’t it safe now?

Not necessarily. The FTC explains that banks must make deposited funds available quickly, but it can take weeks to find out a check was fake, and then the bank takes the money back from you.

A buyer wants to send me a code to prove I’m real. Should I read it back?

No. The FTC warns this is a Google Voice verification code scam: the code lets them set up a number linked to your phone and use it to cheat other people.

I already paid or sent money. What now?

Call your bank on the number on your card straight away, report the seller to Facebook, and report the scam to your national fraud agency (links below).

Get free scam tips

Short, practical tips on spotting scams, by email.

We don’t share your email. Privacy policy.

Buyer or seller seem off?

Check their phone number with the free phone scam check before you hand anything over. ImposterWatch Personal (US$9/month, cancel anytime) adds AI-powered checks, breach alerts for up to three email addresses and account recovery help.

Run the free phone checkStart 7-day free trial, then US$9/month, cancel anytime

More guides

General information only, not legal or financial advice. ImposterWatch is operated by Cloud Investments FZE (UAE) and is not a background check or private investigator service.