Craigslist Scams: Tips To Avoid Losing Money

Craigslist can be an exciting marketplace of steals and deals or a gateway to a sold out show. But the site is also ripe with scammers who are looking to profit off of your willingness to fork over cash to total strangers.

In July, Jamie O'Leary lost $1,500 when she fell for a fake Craigslist ad referencing a cheap rental home. After seeing the home, O'Leary wired cash to Nigeria, and was told she would subsequently receive keys and a rental contract. But the keys and the contract would never come. The home, O'Leary learned, was actually up for sale.

Last year, Romanian and U.S. authorities arrested more 100 people involved in eBay or Craigslist scams. Romanians pretending to be U.S. citizens had advertised the fake sale of expensive items on the online marketplaces and required wire transfers before delivery. The scams cost Americans more than $100 million.

The key to avoiding these cons is to be a defensive online shopper.

Here are some tips on how to use the site without being scammed:

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• Don't Believe Anything Craigslist-Cerified

  Craigslist does not certify or guarantee any kind of transaction made on the site. Anybody who makes that claim is deceiving you. <a href="http://seattletimes.nwsource.com/html/businesstechnology/2017978122_pfcraigslist22.html" target="_hplink">(h/t Seattle Times)</a>

• View High-Priced Items In Person

  Make sure you see expensive items with your own eyes before making any payments. <a href="http://seattletimes.nwsource.com/html/businesstechnology/2017978122_pfcraigslist22.html" target="_hplink">(h/t Seattle Times)</a>

• Protect Your Financial Information

  Safeguard all your financial information, such as bank account info, social security number and PayPal details. <a href="http://www.bbb.org/blog/2011/10/avoid-getting-scammed-on-craigslist/" target="_hplink">(h/t BBC)</a>

• Avoid Wire Transfers

  Do not use wire services for money transactions under any circumstances. <a href="http://www.bbb.org/blog/2011/10/avoid-getting-scammed-on-craigslist/" target="_hplink">(h/t BBC)</a>

• Meet The Other Party

  If the other party doesn't want to meet you in person, take that as a bad sign. <a href="http://www.bbb.org/blog/2011/10/avoid-getting-scammed-on-craigslist/" target="_hplink">(h/t BBC)</a>

• Make Sure Checks Are Authentic

  Be wary of counterfeit checks and money orders. A check written for an amount greater than the selling price is a red flag. (h/t Seattle Times)

• Safeguard Your Personal Email Address

  Your email account might get phished if you post your address for public viewing anywhere on the site. <a href="http://voices.yahoo.com/10-tips-avoid-scams-craigslist-1748729.html" target="_hplink">(h/t Yahoo Voices)</a>

• Ask Questions To Check Validity

  Avoid making transactions with anybody who is unwilling to disclose information about the product or position they are advertising. <a href="http://voices.yahoo.com/10-tips-avoid-scams-craigslist-1748729.html" target="_hplink">(h/t Yahoo Voices)</a>

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Comments

[kristinward]

10:48 AM on 08/01/2012

I had someone use one of the apartments in my complex as a part of their scam. It wasn't exactly the most comfortable position to be in. There are some obvious warning signs
1.bad or choppy english
2. owner out of country
3. no one able to let you check it out
4.no questions about your background
5. price sounds too good to be true
Let me say as a landlord I'm going to write any emails as professionally as possible, because it is a business transaction. You want to sound like your taking this seriously and know what your doing.
Owner out of country should be a big warning sign. Most landlords who are too far away to manage their property hire property managers for a reason. Generally for things like showing the apartment, taking care of issues and maintaining the property. Either way you should always be able to view the place before you rent it.

Another thing to look out for is lack of interest in things like criminal record, credit and other background information. Any decent landlord is going to be looking for this, shoot many applications now ask you to sign off to allow tenant screening. I've been using www.tenantverification.com for years to do mine. Only someone who doesn't care what happens to the property would bother to look into your background. Definitely should set off warning bells.

If it sounds too good to be true it probably is.

[gleeaikin]

07:12 PM on 07/27/2012

Recently when involved with some rental situations, I and people I spoke with had several scamming experiences. I decided to write a blog post about detecting and avoiding scams on my blog: gleeaikin.blogspot.com

[stinkybug]

11:31 AM on 06/29/2012

I disagree about getting phone number from potential buyers to short circuit scammers. I will not give out my phone number to a stranger...period.

I mean SELLERS can be scammers as well.
Best advice is: local. Cash. I do paypal but will only ship when I see the money added to my account. And why add: "no scammers!".. I mean were I a scammer that would just get my juices going.

[CowboyTech]

07:15 PM on 05/26/2012

I was selling an item on Craiglist and someone said they'd send me a check and send someone to pick up the item. I said I'd ship it if they send the check. Believe it or not, they actually sent me a legit looking bank draft, which I immediately gave to my bank, then I wrote to them and asked for a delivery address. When they sent me an address I sent them a fake UPS confirmation number and an expected delivery date, and notified the police in that area. I have no idea what happened after that, but I hope they got the person.

[juandiggla]

11:46 PM on 05/26/2012

ya man thats the oldest scam in the book.... myself and three or four people i know got hit with that as well..

[MIMom]

07:03 AM on 04/24/2012

Better tip -- TAKE CASH ONLY!

[straightuptalker]

06:41 AM on 04/24/2012

Craigslist is open to everybody, legit or not. It's impossible for them to police every ad, and they don't want to have to do that, leaving the risk up to the consumer or seller. Unfortunately, they do have a reputation for allowing prolific predators, scammers and criminals to join the ranks.

[Boobuzuela]

10:58 PM on 04/23/2012

If you ONLY deal in person, in cash, with a person, and the merchandise (including title of vehicles) IN hand, you'll short circuit 95% of the scams.

I have not bought or sold a SINGLE item on Craigslist without someone trying to run a scam on the transaction, one way or another.

A way to avoid a lot of the SPAMMERS harvesting email addresses from Craigslist is to request buyers send an email with a specific SUBJECT line, as in "I WANT DATSUN 510"

If they don't comply, don't respond to the email.

[livingdangerously]

11:02 AM on 04/26/2012

Better yet - get a dedicated phone number. Cuts out 99% of scammers and FLAKES. Don't deal with the e-mail at all.

[nick 5228]

06:41 PM on 04/23/2012

Anyone who gets scammed on Craigslist is a MORON. FIRST - the syntax of the reply or advertisment is a clear giveaway for a foreign scammer. SECOND - if you wire or send any money to anyone before securing the goods ESPECIALLY in NIGERIA you are a candidate for a full frontal lobotomy. THIRD - if you receive payment via check or money order that EXCEEDS your amount you should know its a fake or error. Most rush to the bank, cash the check/money order then remit the balance - see the first sentence. Cash only, pick up or in person at a designated area that is a secure location. PS - I am the son of a Nigerian national and my account of $24 million is being held up because of internal accounting problems . . . .

[jejozi]

05:59 PM on 04/23/2012

"Don't Believe Anything Craigslist-Cerified"? Oops.

[magnumbob1]

05:29 PM on 04/23/2012

I would agree with most of these with a few exceptions.
Deal in cash.
I will not accept any kind of check what so ever. ANY type of check (personal, money order, cashiers, bank, etc.) can be forged, and you may not find out until days later, long after your merchandise is gone.
While I would never even consider conducting any business involving a wire transfer company such as Western Union (almost always a scam), I will accept a bank wire transfer directly into my bank account when selling large items. Once the bank shows the funds are in your account, it's yours. Period.

[ligligl]

01:08 PM on 04/23/2012

Wiring cash to Nigeria? What was your first clue?