Scam alert prompts warning over ‘scumbags’

Trade Me is warning consumers about staying safe online following the emergence of scams on rival digital marketplaces. 

The alert comes after reports of a suspected scam involving a Facebook Marketplace user copying a Trade Me listing to list a stranger’s car for sale.

Logan Mudge, pictured, acting head of trust and safety at Trade Me, says with online scams becoming more sophisticated, buying and selling on regulated marketplaces is crucial.

“This kind of scam simply doesn’t fly on Trade Me, and to be frank, you'd be a mug to try anything dodgy on our site,” he explains. 

“We have sophisticated systems in place and you leave deep electronic footprints on our site which can be traced.”

Tony Bing, from Auckland, says he only discovered his 2008 BMW was being listed on Facebook by an imposter when a potential buyer got in touch to offer a much lower price than his Trade Me listing.

Bing’s listing was copied by someone claiming to be a car reseller, who had created a Facebook Marketplace account just a week earlier under the name Amrit Patel. They had advertised the BMW as their own for less than half the price Bing was asking for. 

“The buyer contacted me wanting to negotiate the price down to $6,000, which got me a bit confused because I had listed it on Trade Me for $15,000,” Bing told Stuff. “I eventually figured out the buyer was referring to a Facebook listing which I had no idea about.”

Bing says he contacted the police, Netsafe and Facebook because he was concerned about people falling prey to what appeared to be a scam.

Mudge notes that users on unregulated online marketplaces can create a fake account within seconds and list a high-valued item they don’t own for much less than it’s worth. 

He warns once scammers have a buyer and their money, they usually delete their account and leave consumers out of pocket. 

“We don’t want scumbags like this using our site,” he adds. “That’s why we have a dedicated trust and safety team of 30 people based in Wellington who monitor the site around the clock for any scams or untoward behaviour.

“While this latest example is a relatively straightforward scam, we are only going to see these swindlers become more cunning, mirroring techniques used overseas.” 

Trade Me’s top tips for buying online 

1. If the deal seems too good to be true, it probably is. 

2. It’s not a good sign when a seller tells you they need a deposit to import the product 

3. Don't provide your contact details until the auction or listing is finished 

4. Don't send money overseas. Trade Me members are required to have a New Zealand bank account 

5. When selling online, ensure payments have cleared in your bank account before releasing any goods