OfferUp scams: what to watch for & how to stay safe
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OfferUp is a massively popular customer-to-customer (C2C) online marketplace platform with over 50 million downloads on Google Play alone. With tens of millions of active monthly users, OfferUp scams are also widespread. According to the FTC, US consumers lost nearly $400 million to shopping scams in 2023.
Although OfferUp provides safety features, like account ratings and verification, scammers come up with new fraud methods. The C2C sales model is particularly risky, as scammers often get to interact with potential victims directly. Knowing their methods helps you identify and avoid OfferUp scams.
To help you stay safe, I researched the most popular OfferUp scams. In this article, I explain how they work, how to identify them, and provide online safety tips. If you're wondering what to do if you get scammed on OfferUp, you will find practical tips right before the conclusion.
What is OfferUp and how it works
OfferUp was launched in April 2011 as a mobile-focused competitor to Craigslist. The platform quickly grew in popularity, with Forbes naming it one of the fastest-growing startups in 2015. Right now, it is among the most popular C2C online marketplaces in the US, with sources citing over 56 million yearly users in 2024.
The logic is simple. Sellers place their offerings, including item photos, price, and description. The buyers establish contact using the built-in messaging system to negotiate and finalize the payment. What sets OfferUp apart from other online marketplaces is that it prioritizes live commodity exchange instead of nationwide shipping.
Live exchange aims to minimize OfferUp shipping scams. This way, consumers can inspect the product to verify its authenticity, and the sellers receive payment in cash, without risking online transfer fraud. OfferUp also allows rating users to inform the public of trustworthy or suspicious accounts.
Additionally, OfferUp uses TruYou verification. This program verifies users using their governmental IDs. Although TruYou is a good indication of an authentic account, sophisticated scammers can work around it, like tricking the victim into sharing their payment details outside of the platform.
So, is OfferUp legit and safe? Yes, the platform works well for most users. However, C2C, also called peer-to-peer marketplaces, are inherently risky. Because you can't really know for sure who the other party is, I recommend taking safety precautions. Although OfferUp offers buyer protection, scammers still find a way to bypass or exploit it using the methods I outline below.
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Why OfferUp can be a target for scams
Even with additional safety features, you can get scammed on OfferUp. In reality, scammers target all platforms that attract millions of users, especially when online shopping is involved. As discussed previously, the peer-to-peer OfferUp nature also poses serious security challenges.
Firstly, anyone can create accounts and product lists on OfferUp. I found several user reports on Reddit outlining suspicious sellers. Accounts less than a month old are more likely to be fake. On the other hand, an unverified account with a maximum of five-star ratings may also belong to a scammer.
The issue is that fraudsters can create fake OfferUp buyers to boost their other profiles' ratings. Then, they can trick the victim into going off the platform, like visiting a fake OfferUp mirror site, or making the payment using a third-party processor. Keep in mind that if you get scammed outside of OfferUp, its buyer protection does not apply, and that's what scammers are seeking.
That's why it is essential to keep track of contemporary OfferUp scams. On C2C marketplaces, fraudsters will likely try to trick you during the conversation. Here are the common scam types you should watch for on the OfferUp peer-to-peer marketplace.
Common OfferUp scam types & warning signs
In most cases, scammers will try to get you off the OfferUp platform or negotiate special payment rules. Recognizing fraud patterns is your first line of defense, so below I list eight popular OfferUp scam scenarios.
1. Fake verification code / phishing link scams
To complete the purchase, scammers may inform you that they need to send a verification code to your email or telephone number. In reality, they are attempting to bypass two-factor authentication. For example, they may be trying to log in to your bank account and seek to lure out its two-factor verification code.
Phishing link scams are also very popular. Fraudsters send a link redirecting you to a platform that looks nearly identical to the OfferUp marketplace. Then they steal whatever personal details you input there, including payment information.
In both cases, staying on the OfferUp platform is essential. Also, do not provide sellers with any verification codes, as OfferUp representatives would never ask for such details.
2. Overpayment and refund scams
In this case, you are dealing with OfferUp's fake buyers. Typically, they use a non-reversible third-party payment processor like Venmo. Scammers claim overpaying for the product and ask for a refund. In reality, they use a stolen payment account or send a bad check, so the money never reaches the victim.
To stay safe, avoid using any payment apps outside of OfferUp. Also, do not issue any refunds before you are completely sure that the money has been transferred to your account.
3. Fake shipping or escrow services
You are likely being scammed if you are coerced into using an alternative shipping courier. OfferUp uses the US Postal Service (USPS) and provides you with a prepaid USPS label, which you can track on its platform. But scammers can ask to ship via UPS or DHL, bypassing OfferUp safety policies.
My advice is short and straightforward. Do not ever use an alternative shipping service, as you lose OfferUp protection and guarantees.
4. Empty-box / non-delivery scams
This scam exploits human error. Fraudsters can include suspicious keywords in long and confusing product descriptions, such as "only packaging" or "images of the product." Victims who hastily shuffle through the description miss the red flags and receive empty boxes or useless pictures of their desired purchase.
The lesson here is to inspect the advertisement for any signs of inaccuracies carefully. Ask for real product photos (instead of stock photos) and a live meetup to receive your purchase.
5. Counterfeit or stolen goods
If something is too affordable to be true, it might be counterfeit or stolen goods. You may sometimes notice fashionable designer bags or sneakers, smartphones, and gaming consoles priced below the market average. Look for signs like blurry or stock photos, third-party shipping services, and payment processors.
Before buying an otherwise expensive product, look for TruYou account verification and legitimate user reviews. A live meetup delivery also lets you inspect the purchase before handing over cash.
6. Gift card or alternative payment scams
You may also meet buyers eager to pay more for your goods, which they claim desperately need. If they are keen on using an alternative payment method or a gift card for it, it is likely a scam.
Keep in mind that the scammers will try to trick you by offering more money than you ask for. If you agree, they will provide fraudulent payment details, expecting that you will ship the order without verifying.
OfferUp uses the secure payment processor Stripe. If you accept payment through any other means, you will have to contact a third-party payment processor for potential fraud resolution.
7. Impersonation of OfferUp support
Customer support impersonation is a widely popular and effective identity theft scam. You may receive an sms or email from someone claiming to be an OfferUp customer support representative. They may ask to share your account details, change the password, or verify payment details.
Keep in mind that OfferUp representatives will never ask you to share details, like your account password. Also, they typically contact clients via the official app, instead of sending text messages or emails to personal addresses.
8. “Out-of-town” or “urgent sale” scams
In this case, sellers place "too good to be true" offerings, but with a twist. They claim to be out of the country, for example, on military deployment. They promise a hasty delivery via a relative, but ask for a down payment, faking some kind of necessity.
It's best to cautiously verify that all payment and delivery details happen over the OfferUp platform. Also, do not ever pay upfront until you can verify a legitimate shipment of your goods.
How to stay safe on OfferUp
Now that we've got what happens if you get scammed on OfferUp figured out, let's see general OfferUp safety tips. Let's start with advice for OfferUp buyers.
For buyers
- Meet in public places. You never know who can turn up at your delivery address. Avoid home deliveries to keep your address safe from scammers. Also, meet in public crowded places at daytime to avoid being burglarized.
- Use Stripe payments. Do not accept payment via third-party processors like Venmo or PayPal, or gift cards. Keep in mind that OfferUp does not accept these methods or cryptocurrency, so stick with its native Stripe.
- Stay on OfferUp. Many scammers will try to get you off the platform, for example, by using an alternative shipping courier. Always use only the tools OfferUp provides to exchange goods.
For sellers
- Verify the buyer's profile. If you notice anything suspicious, verify the buyer's profile. Look for the TruYou verification badge, previous activities history, and profile ratings for more information.
- Don't ship early. Only release the goods after the payment has been verified. OfferUp will notify you in-app once the payment reaches Stripe and it is safe to send out commodities.
- Protect your privacy. Limit personal details to the bare minimum required to finalize the exchange. Keep in mind that scammers can use the obtained personal data to scam you on other platforms.
Lastly, prioritize local in-person transactions. OfferUp also recommends opting for cash exchange, as it neutralizes several online scam methods discussed in this article.
What to do if you’ve been scammed
Even the best online scam protection cannot ensure 100% safety. Here's what you can do if you've been scammed on OfferUp.
- Report via OfferUp. This platform has a dedicated system to report fraud you can reach via this link. Firstly, review their guidelines on when to report an OfferUp user for scamming. You can also report them from their profile page, chat messages, or report entire product listings as fraud.
- Contact the payment processor. If you've transferred the money using a third-party processor or via bank transfer, you must contact them immediately. In this case, OfferUp is unlikely to interfere, as you are using an app outside of their legal bounds with the Stripe payment processor.
- Collect evidence. This is a crucial step, as any involved party (from law enforcement to OfferUp customer support) needs as many details as possible. Screenshot scammers' profile, copy chat logs, save payment receipts, and all other information you consider valuable to investigate the issue.
- File for investigation. If OfferUp is not legally obliged to handle your case (for example, if you used an alternate shipping provider), it's best to contact the FTC or the local authorities. Unfortunately, the police often only investigate issues with severe financial damage, leaving smaller ones untouched.
- Secure account credentials. If you suspect that hackers have successfully breached your OfferUp account, change your password. Also, turn on two-factor authentication, which protects your account even if criminals manage to steal your login details.
Conclusion
After all these scam examples, you may be wondering if OfferUp shipping is safe. The popular C2C marketplace is secure, but experienced scammers continuously come up with new fraud methods. But that doesn't mean you must avoid such platforms.
Because fraudsters look for the easiest targets, you will be much safer after familiarizing yourself with their tricks. Also, you can use additional cybersecurity tools that will ward off most attackers.
To stay safe, I recommend services like Aura to monitor your credit and spot scams the moment they go for your money. Also, identity theft protection service Coveron monitors the dark web for personal data leaks that fuel information to OfferUp scams. The only drawback is that if you're located in New York, you won't be able to use its cyber and identity protection perks.
Other identity protection guides from Cybernews:
Telegram scams: how they work, what to watch for & how to protect yourself
Scam call numbers: what they are, how to spot them & what to do
How to deal with an Apple Pay scam: red flags and real defenses
Address fraud: what it is, warning signs, and how to protect your home address
FAQ
Is OfferUp safe to use?
Yes, OfferUp is safe to use if you are aware of OfferUp scams. Although most OfferUp fraudsters try to trick their victims during a live chat, I also recommend services like Coveron or Aura that add additional identity theft protection benefits.
Will OfferUp refund me if I get scammed?
OfferUp will only refund you scammed money if your case qualifies under its protection policy. Essentially, the goods must be purchased through the OfferUp platform using its chosen shipping provider. Using an alternative payment processor or courier annuls your refund rights.
How can I spot fake listings?
You should be mindful if the product costs much less than the market average. Stock photos, confusing product descriptions, and multiple similar listings across different OfferUp sellers indicate a scam.
Can I trust users without ratings?
That depends. Some OfferUp users without ratings are legitimate new accounts selling their goods. However, scammers often use "burner" accounts that are fresh and do not have any history or ratings. Carefully inspect the advertisement or contact OfferUp support for assistance before purchasing.
