How to Avoid Scams When Buying and Selling Online in 2025

Online marketplaces have revolutionized how we buy and sell items, but they've also opened doors for scammers. In 2024, Australians lost over $568 million to online scams according to the ACCC. Here's how to protect yourself.

---

The Most Common Online Marketplace Scams

Understanding the tactics scammers use is your first line of defense. Here are the three most prevalent scams targeting buyers and sellers:

1. The Overpayment Scam

Scammers send you a fake payment confirmation for more than the asking price, then request you return the "extra" amount. By the time you discover the original payment was fake, you've already sent real money to the scammer.

🚨 Red Flag: Anyone asking you to refund an overpayment before the funds clear.

2. Fake Payment Confirmations

Scammers send official-looking screenshots or emails claiming they've paid, pressuring you to ship items before payment actually arrives.

🚨 Red Flag: Payment confirmations sent via email or screenshot instead of showing up in your actual account.

3. The Shipping Address Scam

After you ship an item, the scammer claims it never arrived and requests a refund, even though they received it at an alternate address they provided.

🚨 Red Flag: Buyers insisting on shipping to an address different from their verified account address.

---

10 Ways to Protect Yourself

1. Always Verify Identity

The most effective protection is knowing who you're dealing with. Platforms with ID verification requirements dramatically reduce scam rates.

On Floatin, every user undergoes identity verification before they can buy or sell.

2. Use Secure Payment Methods

Never use wire transfers, cryptocurrency, or gift cards for marketplace transactions. These payment methods offer zero buyer protection.

✅ Recommended Payment Methods

❌ Avoid These Payment Methods

3. Meet in Public Places

For local transactions, always meet in well-lit public areas with security cameras.

Safe Meeting Locations:

• •🚔 Police station parking lots
• •🏬 Shopping center entrances
• •🏦 Bank lobbies during business hours
• •☕ Busy coffee shops

4. Trust Your Instincts

If something feels off, it probably is.

Common Warning Signs

5. Check Seller/Buyer History

Review ratings, feedback, and account age before transacting.

Red Flags in User Profiles

• •🆕 Brand new accounts (created within last week)
• •👤 Accounts with no reviews or transaction history
• •🖼️ Generic profile pictures or stock photos
• •❓ Incomplete profiles with minimal information

6. Get Everything in Writing

Keep all communication within the platform's messaging system. This creates a paper trail if disputes arise and allows the platform to assist if needed.

💡 Pro Tip: Screenshot all conversations and agreements, especially for high-value items.

7. Inspect Items Before Paying

For in-person transactions, never hand over money without thorough inspection.

Inspection Checklist

For Electronics:

• •✓ Power on and test all functions
• •✓ Check for physical damage
• •✓ Verify serial numbers match listing
• •✓ Test connectivity (WiFi, Bluetooth, etc.)

For All Items:

• •✓ Compare to listing photos
• •✓ Check for wear, damage, or defects
• •✓ Verify authenticity (for branded items)
• •✓ Bring a friend for expensive purchases

8. Use Platform Protections

Quality marketplaces offer buyer and seller protections. Don't circumvent these systems.

Never Do This:

9. Report Suspicious Activity

If you encounter a scammer, report them immediately. This helps protect other users and builds safer communities.

Where to Report:

1. •The marketplace platform
2. •ScamWatch (scamwatch.gov.au)
3. •Your local police (for significant amounts)
4. •Your bank or payment provider

10. Verify Through Multiple Channels

For high-value items, take extra precautions.

Additional Verification Steps

---

The Floatin Difference

At Floatin, we've built safety into every aspect of our platform to create Australia's most trusted peer-to-peer marketplace.

Our Safety Features

Why Verification Matters: Platforms with mandatory ID verification see up to 90% fewer scam attempts compared to unverified marketplaces.

---

What to Do If You've Been Scammed

If you believe you've been scammed, act quickly. Time is critical for recovering funds and preventing further damage.

Immediate Action Steps

1. •

   🛑 Stop all communication with the scammer

   • •Don't respond to messages or calls
   • •Block their contact information
2. •

   📞 Contact your bank or payment provider immediately

   • •Report fraudulent transactions
   • •Request a chargeback if applicable
   • •Freeze affected accounts if needed
3. •

   📝 Report to the platform where the transaction occurred

   • •Provide all evidence and screenshots
   • •Follow their dispute resolution process
4. •

   🏛️ File a report with ScamWatch

   • •Visit: scamwatch.gov.au
   • •Include all transaction details
5. •

   👮 Report to local police if the amount is significant

   • •Bring all documentation
   • •Get a police report number
6. •

   🗣️ Share your experience to help others avoid similar scams

   • •Post on community forums (without revealing personal info)
   • •Leave platform reviews if appropriate

Evidence to Gather

• •💬 All messages and communications
• •💰 Payment confirmations and receipts
• •📸 Screenshots of listings
• •📧 Email confirmations
• •📱 Phone numbers or contact details used
• •📦 Shipping tracking information (if applicable)

---

Quick Reference: Scam Prevention Checklist

Before any transaction, run through this checklist:

For Buyers

• • Verified seller's identity and account history
• • Checked reviews and ratings
• • Confirmed payment method is secure
• • Kept all communication on-platform
• • Arranged safe meeting location (if local)
• • Prepared inspection checklist
• • Trusted your instincts about the deal

For Sellers

• • Verified buyer's identity and account history
• • Confirmed payment before shipping/handing over item
• • Used tracked shipping with signature confirmation
• • Documented item condition with photos
• • Kept all receipts and proof of postage
• • Avoided sharing personal banking details
• • Met in safe public location (if local)

---

The Bottom Line

While scammers will always exist, you can dramatically reduce your risk by:

✓ Using platforms with verified users – Know who you're dealing with ✓ Following secure payment practices – Protect your money ✓ Trusting your instincts – If it feels wrong, walk away ✓ Taking your time with decisions – Scammers rely on urgency

Remember: The safest marketplace is one where everyone is verified and accountable. That's why we built Floatin.

---

Ready to Buy and Sell with Confidence?

Join the Floatin waitlist and be among the first to experience a truly verified marketplace where safety isn't an afterthought—it's the foundation.

🚀 Join the Waitlist →

---

Last updated: November 15, 2025 | Reading time: 8 minutes