Check twice, pay once: starting new habits to avoid merchandise fraud

Marketplace Frauds

Fraudsters often exploit online marketplaces and classified ad sites to trick Canadians out of money or items. These frauds can take several forms:

• Overpayment Frauds: A fraudster poses as a buyer and sends a payment that exceeds the agreed price. They then ask the seller to refund the difference. Later, the original payment bounces or is reversed, leaving the seller without the product and the refunded money
• Fake Payment Confirmation: Criminals may send fake payment notifications via email or text message to convince sellers that funds were sent when no money was actually transferred
• Non-delivery frauds: Fraudsters pose as sellers, collect payment for an item, but never ship the product

Deceptive Marketing Practices

Fraudsters create fake websites and advertisements to market counterfeit goods, often using phrases like “Today Only” or “Limited Time Offer” to justify the drastic discounts. Traffic to these websites is generated through paid advertisements displayed on other sites, including social media platforms (e.g. Facebook, Instagram).

Beware: counterfeit products are typically poor in quality and can pose serious health and safety risks. To reduce the risk, the CAFC advises Canadians to destroy the product or return it to the seller.