Tips to help you steer clear of fraudsters on online classified websites

Sellers must be well-versed with features of payments app. Buyers should avoid advance payments

Bengaluru-based Yoga instructor Maaya Singh (name changed on request) was shifting houses. She had put an ad on OLX to sell her furniture. An interested buyer called and asked if he could transfer half the money to her account right away, to which she agreed.

Instead of sending her money, the buyer sent a request to collect Rs 10,000 from her. He immediately called and asked her to approve it. “Thankfully, I was alert and realised the trick. He was trying to defraud me by making me transfer Rs 10,000 to him,” says Singh. When Singh shared her experience on social media, many individuals told her that have already lost money to such a fraud.

This is just one of the tricks that fraudsters have been using to dupe people visiting online classified websites where numerous individuals buy and sell goods to get the best price. 

Carefully crafted words: When tricksters approach gullible individuals, their approach is well crafted. As buyers, they usually take the details of items and then bargain for a better price to appear genuine.

When they send a collection request, the message that appears on the app is written in such a way that the seller can get easily confused. One of the messages says: “Click here to transfer money into your bank account successfully.” Another reads: “Money received to your account successfully. Click here to complete the transaction.” Those who fell prey to the scam say the messages that the fraudsters send appear as if they are automated system messages sent by the app.

After sending the message, the scammers usually call the seller immediately and engage them in a conversation. Even while talking, they carefully choose their words to mislead their victims. In Singh's case, for example, she was told to complete the transaction “to pay to her account” and “transfer funds to her bank”.

Beware of scammers posing as defence personnel: Another popular scam on online classified websites targets buyers. The seller poses as a Central Industrial Security Force (CISF) personnel or working in the army. Typically, they list the item at a throwaway price to lure buyers. When a person approaches them, they ask for his proof of identity. .

In most of these cases, the perpetratotrs pretend to work inside an area where entry is restricted, such as an airport. The buyer is asked to reach the airport, and then to transfer half the money. They say that a colleague will come out and deliver the goods as they are on duty. Once the money is transferred, they stop picking up the phone.

According to reports, when police investigated the scam, they realised that the fraudsters had been using leaked soft copies of Aadhaar and ID cards of CISF and army personnel. CISF and army headquarters have received several calls and complaint emails, questioning the integrity of the men in uniform, accusing their staff of duping customers on classified websites.

Be well-versed with payment app features: One of the ways to avoid the scam is to use limited apps for payments and be well-versed with their features. You should be able to distinguish when a person is sending the request to collect money. When receiving money, no app asks for a one-time password (OTP). It just comes straight to your bank account.

The payment apps also continually keep working on security. “We have been developing highly advanced algorithms and systems that warn users whenever a suspicious activity is detected. For instance, users see a pop-up when any unknown person requests them for money and can block that person if he is not a trusted contact,” says Anuj Bhansali, head of fraud and risk at PhonePe.

He says that the company also blocks any suspicious collect requests detected using their models. Phonepe also has cool-down periods for people who abuse the collect request feature, banning them from raising any new ones.

Don’t pay any advance: No matter how lucrative the deal sounds, avoid paying an advance or token. As a buyer, check goods carefully before making the payment and as a seller, ensure that all the currency notes are genuine if the deal is in cash.

Many classified websites are aware of the frauds taking place on their platforms. On OLX, for example, about 25 per cent of the listings each day are rejected since they fall under the restricted categories or have attributes with a high fraud propensity. Lavanya Chandan, general counsel at OLX India, explains: “In our app, we offer pop-up safety and security tips. There are options to report a user who has questionable content or behaviour within the app. Users can also have a conversation with the in-built voice chat without having to share personal phone numbers.”

Quikr has introduced an escrow account to ensure transactions are safe. Users also have the option to hide their email addresses and phone numbers. The online classified platform also offers doorstep pick-up and delivery for convenience and security.