What is a purchase scam?
A purchase scam is an advert or listing for a fake or non-existent item normally posted on social media or an online marketplace. Criminals often try to make the advert look genuine to entice buyers to their fraud. Victims may also unwittingly share fraudulent listings with friends and family.
How do purchase scams work?
Criminals advertise goods on social media and through listings on genuine selling sites. Once the victim clicks on the post or makes contact, the ‘seller’ will often make extra effort in communication to push the sale through.
It is common for the seller to provide reasons why you are unable to view the item in person. They may also create a sense of urgency, implying that the item is in high demand, to convince the person to buy quickly.
The seller will then ask you to use a payment method that does not offer protection. For example, ‘PayPal Friends & Family’ service, or to pay for goods by bank transfer. Once you’ve paid, the buyer will lose contact with the seller who may receive no goods or goods different from those advertised.
How much money is being lost to purchase scams?
Santander data reveals that 80% of purchase scams reported to them started on online selling platforms or marketplaces. In 2023, customers lost over £7.3 million to this fraud, a 32% increase from 2022. The average loss claimed by customers was £500.
“More than ever, scammers are homing in on our love of grabbing a bargain. Whether it’s that ‘impossible’ to come by collectible or a new phone’ comments Santander’s Head of Fraud Risk, Chris Ainsley.
“It’s great to see online marketplaces like Gumtree taking strides towards not only removing scam posts from their site. But also putting measure into place to stop them appearing in the first place. Customers should always be wary of an item for sale that seems too good to be true, but the more that can be done to stop criminals from creating these posts in the first place, the better.”
How to spot a purchase scam
Criminals can be very clever. However, knowing the red flags of a fraudulent advert can help you avoid falling victim to a scam.
- Too good to be true? An item priced under the recommended selling value should always be a red flag. But it doesn’t need to be a high-value purchase. Criminals will post everything in demand, from that impossible-to-find collectible figure to the latest sold-out kid’s toy.
- Shop local Most selling sites, like Gumtree, can be filtered depending on postcode and location. Shop local, and make sure you see and touch the item in person first. To help protect customers, Santander recently introduced a new fraud warning that won’t allow a customer to make a purchase from Facebook Marketplace. Unless they confirm they have seen it in person first.
- Stay secure Always use secure payment methods where you can. PayPal (buying goods), debit and credit cards can offer more protection than bank transfer. Any attempts to communicate outside of the site, of a push to pay buy another method should be treated with suspicion.
- Slow down Taking the time to look into how long the poster has been a member of the selling site, look at their profile, and read reviews from other buyers is a good way to check if someone is genuine. Taking time to complete some basic checks can reveal some simple giveaway signs, like criminals asking you to transfer money into an account in a different name than the original “for sale” listing.
Check out our Safety Hub for more advice on detecting fraud.
What does Gumtree do to protect users against purchase scams?
Gumtree has invested heavily in technology to prevent scam posts from making it onto the platform. Listings undergo extensive automated and human moderation, and users can report any advert that causes concern with one click.
“Extra resource is given to our smart phone, games console, digital camera, collectible and gadget categories as these are most targeted by criminals.” says Gumtree’s Head of Trust and Safety Joseph Rindsland. “We also stay a step ahead of seasonal scams, such as high-value outdoor items, including jacuzzis in hot weather and new vehicle registrations in March and September.”
To safeguard our users we use industry leading tools to make our platform inhospitable to bad actors. Additionally we open about how to stay safe online and work with external partners to ensure we are best in class. More details about our approach are available in our trust and safety report.
What should I do if I think I have been a victim of a purchase scam?
If you are suspicious of a listing on Gumtree, simply click the ‘Report’ button. Our Trust and Safety team will investigate and remove any advert that does not meet our strict standards. If you need further support, our Customer Support team is also available 24/7, 365 days a year.
All cases of fraud, such as purchase scams, should be reported to Action Fraud. Additionally, immediately contact your bank if you have shared financial details. More support on what do if you think you have been a victim of fraud can be found on our Help Desk.
