How to Avoid Getting Scammed When Buying or Selling Privately

Buying and selling privately can be a great way to save money or make extra cash. Whether it’s a second-hand car, electronics, or furniture, private transactions cut out the middleman.

However, private sales carry risks. According to UK Finance’s Fraud Facts 2024 report, fraud losses across payment types totalled £1.17 billion in 2023, with authorised push payment (APP) scams making up £459.7 million.

Scammers often exploit the lack of buyer or seller protection. Once money is gone, it’s usually very difficult to recover. This guide explains common scams, how to spot them, and practical steps to protect yourself.

Common Scams in Private Transactions

1. Fake Bank Transfers A scammer shows a “payment confirmation” email or screenshot that looks real. Once you hand over the goods, the payment never arrives.

2. Overpayment Scams The buyer sends too much money and asks for a refund of the difference. Later, the original payment bounces.

3. No-Show Buyers or Sellers You pay upfront and the seller disappears, or a buyer never turns up but pressures you to reserve an item with a deposit.

4. Counterfeit Goods High-value items like designer products or electronics can be fake or faulty.

5. Car Sales Fraud The DVLA warns sellers never to hand over a vehicle until funds have cleared.

   
   

Why Bank Transfers Can Be Risky

Bank transfers are popular, but they have risks:

• Irreversible: Once sent, it’s usually impossible to reclaim funds.

• Limited protection: Unless your bank follows the Contingent Reimbursement Model Code, refunds aren’t guaranteed.

• Fake proof: Screenshots of transfers can be easily forged.

  
  

How to Stay Safe When Buying or Selling

1. Meet in Safe, Public Places Police stations in the UK sometimes provide “safe zones” for private sales.

2. Verify Identity for High-Value Transactions Check ID for high-value items like cars or electronics.

3. Use a Secure Payment App Apps that hold funds, like Trust Toucan until both sides meet conditions protect buyers and sellers. Funds are only released when obligations are met.

4. Get Agreements in Writing Even a simple receipt or contract can help in disputes. For cars, complete a receipt of sale and transfer the V5C logbook.

5. Keep a Digital Paper Trail Screenshots of chats, receipts, and payment confirmations can protect you if disputes escalate to small claims court.

What to Do If You’ve Been Scammed

1. Contact your bank immediately. They may be able to stop or recall the payment.

2. Report the scam to Action Fraud: https://www.actionfraud.police.uk/

3. Inform the platform (Facebook Marketplace, Gumtree, eBay).

4. Consider small claims court if you know the person’s identity: https://www.gov.uk/make-court-claim-for-money

Private buying and selling can be safe if you take precautions. Scammers exploit rushed, careless deals.

By slowing down, verifying identities, and using a secure digital payment service, you can protect yourself.

Private sales should be simple, safe, and fair — and the right tools make them that way.

Trust Toucan provides this extra layer of security by managing payments, attributing purchase agreements and checking ID's via facial recognition.