As Certified Fraud Examiners (CFEs), we’re trained to spot the red flags of fraud before losses occur. In the world of e-commerce, platforms like eBay offer lucrative opportunities—but also a breeding ground for deceptive behavior. While most transactions are legitimate, new sellers are especially vulnerable to scams that can chip away at profits and trust.
This article breaks down five common fraud schemes targeting new eBay resellers and offers preventative strategies rooted in fraud examination principles: verification, documentation, deterrence, and reporting.
1. The Fake Payment Scam
Scheme:
A buyer pressures a seller to ship an item before eBay confirms payment. The fraudster may even send a doctored image suggesting payment was sent.
CFE Perspective:
This is a classic false representation scheme. It plays on urgency and inexperience—two psychological triggers fraudsters exploit.
Prevention Strategy:
- Do not ship until eBay’s system explicitly confirms that payment has been received.
- Use only eBay’s Managed Payments system to process transactions.
- Document buyer communication and report any pressuring behavior to eBay’s fraud team.
2. The “Item Not Received” Scam
Scheme:
A buyer claims an item never arrived—even when tracking shows it was delivered.
CFE Perspective:
This aligns with a misrepresentation of fact fraud. Fraudsters hope you don’t have solid documentation or are too new to push back.
Prevention Strategy:
- Always ship via eBay’s system to ensure automatic tracking uploads.
- Never change a shipping address after a purchase—this can invalidate seller protections.
- If shipping outside eBay, manually upload tracking numbers to the transaction record.
3. Return Fraud / Partial Refund Pressure
Scheme:
The buyer falsely claims an item was “not as described” and demands a partial refund without returning the product.
CFE Perspective:
This is an intimidation tactic bordering on unauthorized benefit or unjust enrichment.
Prevention Strategy:
- Require the buyer to return the item before issuing a refund.
- State clearly that refunds will only be processed once the returned item is verified against original photos.
- Maintain a complete digital paper trail of all product listings, photos, and correspondence.
4. The “Switcheroo” Return Scam
Scheme:
A fraudulent buyer returns a different item than the one originally shipped (e.g., a damaged or counterfeit version).
CFE Perspective:
This is return merchandise fraud, often charged under federal mail fraud or even postal inspection laws if evidence is strong.
Prevention Strategy:
- Photograph serial numbers and unique identifiers prior to shipment.
- Consider video recording the packing process—especially for high-value items.
- If you suspect postal fraud, file a complaint with the U.S. Postal Inspection Service and notify eBay.
5. Feedback Extortion
Scheme:
A buyer threatens to leave negative feedback unless a discount or refund is issued.
CFE Perspective:
This is coercive fraud and a direct violation of eBay’s terms of service.
Prevention Strategy:
- Save any messages where the buyer links feedback to demands.
- Report immediately to eBay for “Feedback Extortion.”
- eBay typically removes such feedback and may suspend the offending account.
Final Thoughts: Fraud Prevention as a Business Strategy
Fraud may not dominate your eBay business, but how you prepare for it will determine your long-term success. As CFEs, we advocate for a culture of proactive control—and that applies to your online storefront too.
Key Takeaways:
- Trust the platform’s payment and tracking systems.
- Be firm but professional in communications.
- Protect yourself with records, photos, and consistent policies.
- Report fraud promptly to eBay and, where applicable, to federal authorities.
Fraud schemes evolve, but so can your defenses. Set your expectations high, your policies firm, and your records airtight.
Janicek Valuation & Forensic Services, PLLC 