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Classified Ad Scams

Smart online shopping - Classified ads

Whether you are advertising an item for sale or trying to buy something, there’s a good chance you’ll encounter scammers when using newspaper and online classifieds.

Between January and October 2019, WA ScamNet recieved 197 reports with a total loss of over $208,694 from people caught in classified scams. Most cases involved the purchase of mobile phones, motor vehicles, rental properties and tickets to events.

There are risks associated with buying from private sellers who are not in WA and you don’t meet face to face. Sites like Gumtree are a great way to buy and sell second hand items on a view/pick-up and pay by cash basis. However transacting with strangers who say they are in the Eastern States or overseas means you are buying items sight unseen, so the goods may not exist and often the scammers have copied details from a legitimate advert.

If you wire transfer any form of payment e.g. by Western Union or use an electronic money system like Ukash, it is almost impossible to trace who received the money. Even if you do a bank transfer you may struggle to track the transaction with the banks or gain redress through law enforcement agencies. Only a secure payment system such as PayPal offers a refund opportunity when goods do not arrive.

Remember though, scammers also create copycat versions of secure payment websites like Google Checkout or PayPal and will entice you in by supplying a link. Do not click on links like this - type the known URL (web address) such as paypal.com.au directly into your browser.

If you are using eBay to shop online, only use the eBay message service. This helps avoid scams such as bogus second chance offers on email after you lose out to another bidder.

When using shopping websites which don’t belong to well-known retailers, make sure the business truly exists by verifying the street address and contact details. Do an online search to see if there are any reviews or blogs about it. Before entering personal or financial information, make sure the site is secure (check that the web address starts with https and look for the padlock symbol).

Apart from cars and boats, other fake items often advertised for sale are electronics (phones, cameras etc.), concert or event tickets and pets; mostly puppies. With puppy scams, buyers are drawn in emotionally because of photos and a ‘sob story’ supplied by text or email. There may also be a story about the animal being sick and requiring treatment before it can be shipped and there will generally be a fee for it to be transported to WA in a crate. To avoid these sorts of scams your best bet is to go to an animal rescue centre and adopt a pet or to buy locally from a reputable breeder.

Consumers should be wary if an online retailer offers goods well below market prices and doesn’t accept payment by credit card or Paypal. Be especially concerned if the site asks for payment by bank or wire transfer only.

Consumer Protection advises online shoppers to:

  • Only purchase from well-established reputable online retailers;
  • Be wary of online retailers who accept bank transfers as their only method of payment;
  • Use secure online payment systems. Look for a padlock and https:/ in the web address when entering financial information to make sure your details are secure;
  • Be wary of websites selling goods well below market prices;
  • Do an internet search of the website and business to get comments and reviews from other consumers who have used the same site.

It’s not just buyers who are losing money. Recently sellers who advertised campervans and cars on Gumtree lost thousands of dollars. Scammers pose as potential buyers. They might create a story which involves overpaying and asking the seller to on-pay the extra money to a bogus shipment company or courier. The whole original payment is then declined by your bank because a stolen credit card or dodgy cheque was used. Sometimes the scammers just convince the seller to pay transportation costs up front and then disappear with that money.

For more information about staying safe when using Gumtree see their Help Desk

Report a scam

Scam reporting is vital to catching scammers. The best way to tell us if you have encountered a scammer is to complete the Report a scam form or you can ask for further advice by contacting WA ScamNet on 1300 304 054