Marketplace & Social Scams: What to Watch for and How to Stay Safe

Buying and selling through platforms like Facebook Marketplace, Instagram, and neighborhood groups can be a convenient way to find great deals or clear out clutter, but unfortunately, scammers are waiting to take advantage of unsuspecting users.

At UT Federal Credit Union, we want to help you stay informed and confident while navigating online marketplaces. Below are some of the most common scams and red flags to watch out for, along with UTFCU-approved safety tips to protect yourself and your money.

Common Marketplace Scams

1. Paying or Communicating Outside the Platform

Scammers often try to move the conversation to text or email and push for payment through cash apps like Zelle, Venmo, or Cash App, methods that offer little to no buyer protection.

2. Advance Payment or Deposit Scams

You're asked to pay a deposit or "hold" fee before you've seen the item in person. Once the payment is sent, the seller disappears.

3. Overpayment and Refund Scams

A buyer overpays "by accident" using a fake check or stolen account and asks you to refund the difference. After you send the refund, their payment bounces, and you're left with the loss.

4. Counterfeit or Broken Products

Scammers post high-end items (like electronics or designer goods) at prices that seem too good to be true. The item turns out to be fake, broken, or never arrives.

5. Fake Profiles or Listings

Watch out for sellers or buyers with newly created accounts, no profile photos, or limited history. These are often signs of fraudulent activity.

6. Rental Property Scams

Scammers post listings for properties they don't actually own and pressure you to send a security deposit or application fee without ever seeing the space.

7. Insurance or Shipping Fee Scams

You're asked to pay an additional "insurance" or "shipping" fee after the initial purchase, and then the scammer disappears with your money.

8. Google Voice Verification Scams

Scammers ask you to share a code sent to your phone under the guise of verifying your identity. In reality, they're using it to hijack your phone number and commit fraud.

9. Gift Card or Crypto Payments

Any request for payment via gift cards or cryptocurrency is a major red flag. These forms of payment are untraceable and impossible to recover once sent.

How to Protect Yourself

Stick to the Platform

Use the platform's built-in messaging and payment tools. If the seller insists on moving the conversation or payment outside the app, walk away.

Meet in a Public Place

Always meet in a safe, well-lit public location—preferably during the day. Bring a friend if possible and let someone know where you're going.

Inspect Before You Pay

Never send money before seeing the item in person. Take time to inspect it carefully before exchanging funds.

Verify the Seller or Buyer

Check their profile—look for reviews, length of account activity, and mutual connections. Be cautious with newly created or suspicious-looking accounts.

Avoid Overpayments and Refund Requests

Never refund someone who has overpaid you. This is almost always a scam.

Don't Share Personal Info or Verification Codes

Keep your personal information, banking details, and any verification codes private—no matter how legitimate the request sounds.

How UTFCU Helps Keep You Safe

Automated Fraud Alerts

We monitor your accounts and will contact you automatically by phone, text, or email if we detect suspicious activity. 

Clear Communication Policies

UTFCU will never ask for your full Social Security number, account login info, debit card PIN, or verification codes via text, phone, or email.

Digital Banking Security

Our Digital Banking tools let you set up alerts for account activity, helping you catch any unauthorized transactions right away.

Friendly Local Support

If you ever feel unsure about a transaction or message you've received, you can visit any UTFCU branch or call us directly. We're here to help.

What to Do If You Suspect a Scam

• Stop all communication with the other party immediately.
• Do not send money or share any more information.
• Report the post or user on the platform.
• Contact UTFCU at (865) 971-1971 or (800) 264-1971 to report any suspicious activity on your account.
• File a report with the Federal Trade Commission at reportfraud.ftc.gov.

Staying alert and knowing what to watch for can make all the difference. UTFCU is committed to helping you protect your finances and enjoy a safer experience—both online and off.

Stay safe. Stay smart. Stay connected with UTFCU.