How to protect yourself from fraud buyers
Feb 18, 2025
Protecting your reselling business from fraudulent buyers doesn't have to be complicated.
Recognizing Fraud Buyer Red Flags
Fraud buyers can cost you money, time, and even damage your reputation on selling platforms. Being able to spot suspicious behavior early is crucial. Here are common red flags to watch for:
Unusually large or urgent orders from new buyers.
Requests to communicate or pay outside official platforms (like eBay, Etsy, or Facebook Marketplace).
Shipping address mismatches (billing and shipping don’t match, or shipping to high-risk countries).
Buyers pressuring for quick shipping or offering overpayment.
Accounts with limited or no feedback history.
If you notice any of these, proceed cautiously and consider additional verification steps before shipping.
Step 1: Centralize Your Inventory and Listings
One of the easiest ways to avoid fraud is by maintaining accurate, up-to-date records for your inventory and listings. This helps prevent accidental double-selling and makes it easier to spot suspicious activity. Use a central system like Gavelbase or other inventory management tools to:
Sync product listings across multiple platforms (e.g., eBay, Poshmark, Mercari).
Track current stock levels to avoid selling items you don’t have.
Automatically update inventory when an item sells anywhere.
Keeping everything in one place not only saves time, but also helps you quickly spot if someone is attempting to buy more units than you have available—a common fraud tactic.
Step 2: Assign Basic Team Roles
If you work with others, clear roles help prevent costly mistakes and ensure accountability. Even a small team should:
Assign who handles listing, communication, shipping, and payments.
Set permissions in your central system so only trusted individuals can change inventory or process orders.
Review suspicious orders together before shipping.
This division of duties makes it harder for a single point of failure to lead to fraud slipping through.
Step 3: Track Sales and Fees Carefully
Monitoring your sales and associated fees across platforms helps you quickly identify anomalies that could signal fraud. Key practices include:
Use your inventory tool or a spreadsheet to log every sale, including buyer info and transaction number.
Check for duplicate addresses or names among recent buyers.
Keep tabs on unusually high selling fees or chargebacks, which often accompany fraudulent transactions.
Set up alerts in your selling platforms for suspicious activity, if available.
When you track everything in one place, it’s easier to spot inconsistencies and take action quickly.
Step 4: Handle Shipping and Pickup Cleanly
Many fraud attempts hinge on manipulating the shipping or pickup process. Protect yourself with these habits:
Always ship to the address provided by the selling platform (never a changed or private address).
Use tracked and insured shipping for valuable items, and keep receipts.
Require signature confirmation for high-value orders.
For local pickup, arrange to meet at a police station or public safe-trade location.
Take a photo of the buyer (with their consent) or their vehicle license plate when handing over items in person.
Proper documentation and following platform policies gives you the best chance at winning any dispute.
Step 5: Use Platform Protections
Every selling platform has its own set of protections for sellers and buyers. To benefit from these:
Never accept payment outside the platform (e.g., Venmo, wire transfer, cash apps).
Follow the platform’s process for confirming and shipping orders.
Document all communication through the platform’s messaging system.
If you ever need to file a claim, having everything done by the book gives you a much stronger case.
Step 6: Stay Informed
Fraud tactics evolve constantly. Make it a habit to:
Read seller forums for the latest scam alerts (eBay Community, Reddit r/Ebay).
Review recent updates to platform policies.
Train your team to recognize the latest tricks.
Knowledge is a strong defense!
Conclusion
Protecting yourself from fraud buyers doesn’t require expensive tools or complex systems. By staying vigilant, using a central inventory tool, assigning clear roles, tracking every transaction, handling shipping by the book, and relying on platform protections, you greatly reduce your risk. These are actionable steps any reseller can start today—no tech expertise needed.