Raising the alarm: Report scams on Facebook
Last updated on September 5th, 2024
Although online marketplaces are increasingly aware of the risks of fraud and scams, the level of protection varies from platform to platform. But you should always report scams on Facebook or any other online marketplace.
The number of classified scams rose by 8.3 percent to 11,332 in 2023, according to Scamwatch, with Facebook Marketplace scams the most prevalent.
Facebook Marketplace, eBay and Gumtree have security measures such as data encryption and secure payment portals. They also often provide educational material and reminders about how to avoid scams, informing buyers and sellers of best practices and red flags. Here is a quick look at the three major online marketplaces in Australia:
Gumtree
Gumtree doesn't offer a verification process for its users, but it provides guidelines and reminders about conducting transactions safely. While this information can be helpful, the onus is on the user to follow best practices to avoid scams.
Facebook Marketplace
Much like Gumtree, Facebook Marketplace doesn't verify buyers and sellers. However, it gives reminders and tips on how to avoid scams. It's worth noting that Facebook has a review system that allows you to see comments and ratings for sellers, which can be a helpful tool for assessing credibility.
eBay
eBay goes further with its "Authenticity Guarantee" for specific categories such as collectibles, watches, and sneakers. This feature involves third-party experts verifying the item's authenticity, providing buyers with an extra layer of security. Moreover, eBay has a comprehensive system of buyer and seller feedback and a money-back guarantee for items different from what is described.
How to report a Facebook Marketplace scammer
Whether it's an unreliable buyer or an unscrupulous seller, it's essential to know your rights and the steps to address the issue. The process to report a Facebook Marketplace scammer or a scammer on any marketplace platform is quite simple, though the responses may vary considerably.
Reporting within the platform
Facebook Marketplace: You can directly report a scammer — be they are a buyer or seller - through the Facebook Marketplace interface. Navigate to the user's marketplace profile and select the "Report" option. This will set the review process in motion.
Gumtree: If you come across a problematic advertisement or user, you'll typically find the "Report Ad" or "Report user" option near the advertisement. Click to raise concerns.
eBay: Their system offers a more structured approach through its resolution centre. Here, you can file a complaint, and eBay can often play a mediating role to settle differences.
Seeking help from local authorities
If you suspect you've been the victim of a scam or fraudulent activity, report the issue to the Australian Competition and Consumer Commission (ACCC) through their Scamwatch service. Depending on the severity of the case, you may also want to file a report with the police. With an alarming number of violent robberies linked to meetings arranged via Facebook Marketplace, it’s important to make your safety a priority.
Approach fair trading authorities
You can complain to Fair Trading offices, also called Consumer Protection, in each State and Territory. They offer advice and services to help resolve disputes and can sometimes intervene in cases involving deceptive or unfair conduct.
Take legal action
For particularly contentious disputes, you might consider pursuing the scammer through the small claims tribunal or taking further legal action. However, this can be lengthy and costly, so it's generally considered a last resort.
Online marketplaces are an easy way to rid yourself of excess clutter or snap up a bargain, but you need to do your research to ensure you don’t end up with an empty bank account. If you’ve used the right payment processes but still have an issue, you are entitled to a refund. Lodge a complaint with us, and we’ll help you handle it.
