Top 5 Online Marketplace Scams and How to Protect Yourself from Them

The buying and selling culture in many digitally developed countries, including Canada, has evolved significantly since 2003. The internet has opened unprecedented access and a vast reach for consumers. Social media platforms like Instagram and TikTok have also played a crucial role in shaping consumer preferences and driving purchasing behavior.

Following the COVID-19 outbreak, Canadian consumers experienced a substantial shift, with 50% of online shoppers in 2022 buying more items online than they did in 2020. This trend continued into 2024, with over 30 million Canadians shopping online—approximately 73% of the population. This shift underscores a growing trend towards online shopping in Canada, reflecting the increasing convenience and accessibility of this purchasing method.

The most popular online category for Canadians is computers and electronics, accounting for 42% of purchases.

In addition to platforms like eBay and Amazon, personalized and niche sites such as Facebook Marketplace have become popular, connecting local buyers and sellers and often enabling more convenient, cost-effective transactions than traditional retail shopping. However, this increase in popularity has also attracted scammers who exploit the platform’s relative anonymity. In recent months, many Canadians have reported increasingly sophisticated scams aimed at tricking people into sending money or sharing personal information. These schemes often appear convincing and target both buyers and sellers.

Here are five common marketplace scams Canadians are encountering in 2026:

1. The “Deposit to Hold the Item” Scam: This is one of the most prevalent scams in Canada. It involves sellers asking for a small deposit to hold an item. The listing usually features popular products, such as furniture, electronics, or bicycles, priced attractively to generate quick interest. After a buyer expresses interest, the seller claims multiple people are interested and requests a deposit via e-transfer to reserve it. Once the buyer sends the money, the scammer disappears or blocks them.

Safety recommendation: Refuse to send deposits and insist on inspecting items in person before making any payment.

2. Fake E-Transfer Confirmation Messages: In this scam, a fraudster pretends to buy an item and agrees to pay via e-transfer. Shortly thereafter, the seller receives an email that appears to be an official bank payment notification, stating that the transfer is pending and will be completed only after the seller provides shipping confirmation or pays a small fee. In reality, the email is counterfeit, and the transfer was never initiated. Some sellers ship the item without verifying payment in their bank account, resulting in both the product and the money being lost.

Safety recommendation: Confirm funds directly in your banking app before completing a sale. Legitimate e-transfers appear instantly in the recipient’s account with no additional fees.

3. Overpayment With Refund Request: This scam targets sellers by pretending to make a payment larger than the listed price. The scammer claims they accidentally sent extra money and politely asks the seller to return the difference via another transfer. In reality, the original payment was either fake, reversed later, or made using a stolen account. Once the seller sends the refund, the scammer disappears, leaving the seller with a financial loss.

Safety recommendation: Never issue refunds until you confirm that the original payment has cleared your account. Scammers often rely on politeness and urgency to pressure individuals into acting quickly without verifying the transaction.

4. Fake Shipping Companies: Some scammers pretend to arrange a courier pickup for large items, such as furniture or appliances. They claim they will send a shipping company to collect the products because they live far away. Shortly after, the seller receives an email that appears to be from a courier service requesting payment for shipping insurance or scheduling fees. The message indicates that the buyer has already paid for the item, but the seller must cover the shipping arrangements. After the seller sends the money, the courier never shows up, and the buyer disappears. Legitimate shipping companies never require sellers to pay unexpected fees through unofficial payment links.

Safety recommendation: Always arrange shipping yourself or meet buyers locally to avoid falling victim to this type of scam.

5. The “Gift Card Payment” Request: This scheme involves scammers requesting payment via gift cards. Scammers claim that using gift cards is the easiest way to complete a transaction. They may ask buyers to purchase prepaid cards from popular retailers and send photos of the codes. Once the codes are shared, the scammers redeem them and disappear with the funds.

Safety recommendation: Treat any request for gift card payment as a major warning sign. Legitimate buyers and sellers typically use secure payment methods such as cash or verified electronic transfers.

Final word: By staying informed and recognizing these scams, you can protect yourself as you navigate online marketplaces. Always prioritize safety and verification in your transactions.

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