TSB is urging consumers to be cautious when making online purchases on Facebook Marketplace, revealing that over a third (34%) of the ads reviewed on the platform were found to be scams.
Members of TSB’s fraud team examined 100 Facebook Marketplace posts, which included items like cars, watches, game consoles, air fryers, and handbags. They engaged with sellers to assess whether the items were legitimately for sale or fraudulent. The investigation revealed that 34% of the listings were indeed fraudulent, as sellers employed common tactics associated with purchase fraud, such as directing TSB fraud experts to fake websites, refusing in-person item viewings, and insisting on advance payments. Additionally, TSB found listings advertising items as ‘brand new’ for several hundred pounds less than their actual retail prices.
This alarming finding reflects the high fraud rate on Facebook Marketplace, which accounts for 73% of all purchase fraud cases at TSB and remains the leading source of fraud incidents by volume. TSB estimates that customers of all banks could have lost around £60 million through Facebook Marketplace in 2023, translating to approximately £160,000 in daily fraud.
Matt Hepburn, a fraud spokesperson for TSB, stated, “You wouldn’t shop at a supermarket if a third of the items were stale or counterfeit—so the same applies to Facebook Marketplace, where there’s a one in three chance of being scammed when making online payments.”
In November, eleven major tech companies and social media platforms committed to a UK Online Fraud Charter designed to address the increasing incidence of scams related to fake ads and romance fraud. They pledged to verify new advertisers and promptly remove any fraudulent content.
Hepburn emphasizes the need for social media companies to fulfill their commitments under the government’s Online Fraud Charter: “Acting quickly to eliminate scam ads would be a crucial first step.”