Marketplace payment scam
Fake buyer or seller using courier or overpayment tricks.
How it works
A 'buyer' insists on using a courier and sends a fake payment confirmation. Or a 'seller' takes your deposit for an item that doesn't exist.
Common scenarios to watch for
This scam shows up in several different shapes. Recognise the pattern, not just one message.
Fake PayID 'business upgrade'
A buyer says PayID told them your account needs to be 'upgraded to business' to receive the payment, and they need an extra $500 sent first to unlock it.
"Bank says your PayID is personal — I need you to send $500 to upgrade, then your full payment will release."
Red flags to spot
- Is a buyer claiming your PayID needs upgrading to receive payment?
- Are they asking you to send money first to 'unlock' their transfer?
- Did you receive a fake screenshot or email 'confirming' the upgrade requirement?
- Is the buyer rushing you before you can verify with your bank?
Courier overpayment refund
The 'buyer' overpays and sends a fake email receipt, then asks you to refund the difference to their courier. You send real money; their 'payment' never arrives.
"Oops my courier accepted $1,200 instead of $700 — please refund the $500 difference to this PayID so we can finalise pickup."
Red flags to spot
- Did the buyer 'accidentally' overpay and ask for a refund?
- Have you actually seen the money clear in your account?
- Are they asking you to refund through a different method (PayID, gift cards)?
- Is the 'receipt' or confirmation email from a lookalike address?
Fake seller deposit
A listing for a hard-to-find item asks for a deposit to 'hold' it. The seller blocks you the moment the deposit lands.
"Lots of interest in the PS5 — first to send $150 deposit secures it, balance on pickup tomorrow."
Red flags to spot
- Is the seller asking for a deposit before you've seen the item?
- Is the price well below market value for a hard-to-find item?
- Are they refusing to meet in a public place for inspection?
- Do they push for payment via methods that are hard to reverse (PayID, crypto)?
Red flags
- 🚩Buyer overpays and asks for a refund
- 🚩Seller refuses to meet in person for cash/inspection
- 🚩Payment 'pending' until you pay a release fee
What to do
- 1Only meet in person or use the platform's built-in payment.
- 2Never refund anything before money clears in your account.
- 3Report the listing to the marketplace.
Who's targeted
- Casual buyers and sellers on Facebook Marketplace, Gumtree and Carousell.
- First-time sellers unfamiliar with payment scams.
Why it works
- Fake payment screenshots and 'pending' emails look convincing on a small screen.
- Buyers want a quick sale and skip verification.
Common variations
Different shapes of the same scam — recognise the pattern.
- 1Courier overpayment — buyer 'accidentally' sends too much.
- 2PayID 'business upgrade fee' to receive payment.
- 3Buyer asks to text on WhatsApp to dodge the platform's protections.
If you've already been scammed
- 1Don't ship the item or refund anything until funds clear in your account.
- 2Report the user to the marketplace and block them.
- 3If you sent money, contact your bank's fraud team within hours.
Frequently asked
Is PayID safe?▾
PayID itself is fine, but scammers use fake 'PayID business upgrade' emails to trick sellers.
Should I use a courier?▾
Only one you arrange yourself — never the buyer's 'preferred' courier.
Can I get my money back from a fake seller?▾
Possibly via your card issuer's chargeback. Bank transfers are rarely recoverable.
Questions people ask about this scam
- How does the marketplace payment scam work?
- A 'buyer' insists on using a courier and sends a fake payment confirmation. Or a 'seller' takes your deposit for an item that doesn't exist.
- What are the warning signs of a marketplace payment scam?
- Watch for: Buyer overpays and asks for a refund; Seller refuses to meet in person for cash/inspection; Payment 'pending' until you pay a release fee.
- How can I tell if this is a scam?
- Stop and verify independently. Contact the organisation using details you look up yourself, never the ones in the message, and don't act on urgency. You can also paste the message into the ScamShield AI scam checker for a risk assessment — it gives guidance, not a guarantee.
- What should I do if I clicked the link or replied?
- Stop all contact, change the password on any account you logged into and turn on two-factor authentication, and watch your accounts for changes you didn't make. Only meet in person or use the platform's built-in payment. Never refund anything before money clears in your account. Report the listing to the marketplace.
- What should I do if I already sent money?
- Contact your bank immediately and ask about stopping or recalling the payment, keep all evidence, then report the scam. Be wary of anyone who later offers to recover your money for a fee.
- Where should Australians report this scam?
- Report scams to Scamwatch (National Anti-Scam Centre), report cybercrime to ReportCyber, forward scam texts to 7726, and contact IDCARE if identity details were exposed. Contact your bank first if money is involved.
General scam awareness information. ScamShield AI cannot guarantee that every scam will be detected or that a message is legitimate.