Craigslist Scam: How Scammers Trick Buyers and Sellers

Craigslist is a popular website where people buy and sell things locally. It’s easy to use, free for most listings, and you don’t need an account to post or browse. But because it’s so simple, scammers often take advantage of it.

According to a study conducted by St. Cloud State University, more than 53% of Craigslist listings analyzed contained indicators of fraud, showing the platform’s vulnerability to scams.

Knowing how Craigslist scams operate is essential for securing your presence on the platform, whether you’re a buyer or a seller.

How Craigslist Works?

Craigslist connects buyers and sellers, each facing unique advantages and challenges.

Seller’s Perspective

Sellers on Craigslist can easily reach local buyers without spending much. To create a listing, they just need to describe their item, set a fair price, and upload clear pictures to attract buyers. The site is simple, letting sellers focus on showing off their items. 

But they still need to handle in-person meetings, negotiate prices, and make sure payment is secure. Being clear and honest in their listings helps build trust and leads to successful sales.

Buyer’s Perspective

Buyers are attracted to Craigslist’s wide selection of items, often at great prices. The site’s local focus makes it easy to find products nearby, cutting down on shipping costs. Direct communication with sellers lets buyers ask questions, negotiate prices, and set up convenient meeting times.

Common Craigslist Scams Targeting Buyers and Sellers

The following are some of the most common frauds on Craigslist that one should be aware of before buying, selling, or engaging in any transaction:

Overpayment Scams

In an overpayment scam, a buyer sends you a cheque or money order for more than the agreed price, claiming it’s for shipping or a mistake. After you receive the payment, they ask you to refund the extra amount, usually via wire transfer. 

You send the refund, but later, your bank tells you the check was fake and has bounced. By then, the scammer had taken the money you sent, leaving you without the item or the refund.

Real case: A man from Spokane was sentenced to prison for tricking potential renters out of around $15,000. He posted a property on Craigslist and collected deposits from at least seven people, but when they arrived to move in, they realized they had been scammed.

Fake Escrow Services

Scammers on Craigslist sometimes ask you to use a fake escrow service. They might send you to a shady website and ask for personal info. If you share it, they can steal your identity or money.

Real case: In 2014, a 77-year-old man from Fairfield lost $2,400 in a scam. He sent two checks for an apartment listed on Craigslist, but the keys never arrived, and he later discovered the condo belonged to someone else.

Non-Existent Purchase Protection

In some Craigslist scams, fraudsters claim there’s a purchase protection plan to build trust and encourage payment. After the buyer sends the money, the scammer vanishes, leaving the buyer without the item or any protection. 

Real case: Matthew Shinnick attempted to sell two mountain bikes on Craigslist and received a $2,000 cheque from a Canadian buyer. Despite verifying the account, the cheque was fraudulent, leading to his wrongful arrest and $14,000 in legal fees.

Rental Scams

In a Craigslist rental scam, fraudsters post appealing listings with tempting photos and descriptions, often at below-market prices, to attract renters. They may claim to be out of town or unavailable to show the property, asking for upfront payments before a viewing.

Once the money is sent, they disappear, leaving the renter without both the funds and a place to live.

Real case: A 51-year-old man was arrested after defrauding 31 victims of over $500,000. He advertised holiday rentals in popular areas and collected payments, but either provided false information or disappeared, leaving victims stranded.

Google Voice Verification Scam

In a Google Voice verification scam,  the scammer contacts a seller, showing interest in an item, and asks for a six-digit Google Voice verification code to “verify” the seller’s identity. Once the seller provides the code, the scammer uses it to create a Google Voice account linked to the seller’s phone number, which could be used for fraudulent activities.

A seller received a message from a potential buyer asking for a Google Voice verification code to proceed with the purchase. After providing the code, the seller began receiving unsolicited calls and messages, indicating misuse of their number.

Protective Measures Against Craigslist Scams

Staying informed about Craigslist scams and following these precautions can reduce the risk of fraud:

• Always wait for cheques or money orders to clear before shipping items or issuing refunds.
• Choose payment methods that offer fraud protection and are traceable.
• Avoid sharing sensitive personal information, like verification codes, with unverified buyers.
• If a deal seems too good to be true or a buyer acts suspicious, it’s best to be cautious or decline the transaction.

Make Secure Trades on Craigslist

If you’ve already fallen victim to a Craigslist scam or suspect someone’s trying to trick you, don’t panic, but don’t ignore it either. 

Scammers can be surprisingly convincing, and recovering your money or identity isn’t always easy on your own. That’s where Social Catfish comes in. Our team of search specialists specializes in tracing fake identities, verifying suspicious buyers or sellers, and helping people just like you get clarity and sometimes even justice. 

When trust feels shaky, let us help you confirm who you’re really dealing with.

Here’s what one of our users, Elliot Jolesch, had to say about our services:

“ERIN was my support person and was able to help me resolve my issue very quickly. She had several suggestions on things to try and also asked for detailed information about my setup to troubleshoot further.”