Consumers beware! Over a third of adverts on Facebook Marketplace could be scams, TSB claims
TSB is warning consumers to avoid making online purchases on Facebook Marketplace – as its fraud specialists assess 34% of the adverts tested on the platform to be scam posts.
Members of the FI’s fraud team sampled 100 Facebook Marketplace posts on their feed – including cars, watches, games consoles, air fryers and handbags – and engaged with the seller to determine whether the items were genuinely for sale, or scams.
They concluded that 34% of the listings were fraudulent once the seller used tactics known to be commonly used by purchase fraud criminals.
For instance, sellers deemed to be scammers directed TSB fraud guys to fake websites; refused to allow viewing of an item in person and demanded advanced fees. TSB also discovered items advertised as ‘brand new’, for hundreds of pounds less than their real retail price.
The findings chime with the excessive fraud rate from Facebook Marketplace, which currently accounts for 73 % of all purchase fraud cases at TSB – and remains the biggest driver of fraud by volume.
TSB’s calculations show that £60 million could have been lost by customers of all banks via Facebook Marketplace in 2023 – which is £160,000 being lost every day on the platform.
Matt Hepburn, Fraud Spokesperson, TSB, says: "You wouldn’t shop at a supermarket if a third of the items were stale or counterfeit – so the same should apply to Facebook Marketplace, where you have a one in three chance of being scammed when paying online.”
“Social media companies really must act on their commitments under the government’s Online Fraud Charter by urgently clearing up their platforms – removing scam adverts is a good first test.”
A spokesperson for Meta, owner of Facebook Marketplace , told RTIH: “With tens of millions of people using our apps daily in the UK, we recognise our important role in tackling the industry wide issue of online purchase scams and have systems in place to block scams.”
“Facebook Marketplace is a local meet up and collection service so we don't facilitate payments or shipping, but scammers exploit this by taking conversations off our platforms where we can't enforce.”
“We encourage our community to report scams immediately so we can take action and we'll continue equipping customers with knowledge to transact securely and avoid fraud on Marketplace.”
Meta added that it continues to work closely with Stop Scams UK, a cross industry group across banking, telco and tech companies to help identify scams at the source.
The company also provides advice on how to protect yourself and your purchases whilst shopping on Facebook Marketplace.
It stressed that Marketplace is a local meet up and collection service with the majority of payments done when goods are exchanged. Meta therefore encourages users to follow these steps when buying goods:
Check if the Facebook profile appears new or incomplete, as this could be a sign that the account has been set up for scamming.
Check reviews of online sellers to see what previous customers have said.
Insist on meeting in a public space to view the product before completing any transaction.
Don’t hand over money until you see the item for sale, and use payment options that include strong protections, like PayPal. Avoid using PayPal’s ‘Friends and Family’ payment option.
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