Too Good to Be True: How Fraudsters Use OLX and Online Marketplaces to Cheat Buyers and Sellers

A scooter at half the market price. A fridge that looks nearly new for a few thousand rupees. A seller who says he is posted in the armed forces and is being transferred next week. Scroll through any online classifieds site, and you will meet offers like these every day. Some are real. A growing number are bait.

Fraud on platforms like OLX, Quikr and Facebook marketplace is a clear example of social engineering fraud. The criminal does not break into your phone or your bank. They build a believable story, earn a little trust, and let you make the mistake yourself.

Two sides of the same trick

This fraud runs in two directions. Buyers get cheated, and so do sellers.

1. The fake seller

The fraudster posts an advertisement for a vehicle, mobile phone, appliance or furniture at a price that is just low enough to feel like luck. When a buyer shows interest, the seller asks for money in advance. It is called a registration fee, packaging charge, transportation cost or GST, and the amount sounds small compared with the saving.

The buyer pays, expecting delivery. Then comes another charge, then another. Each time there is a new reason, and each time the promise of the item feels a little closer. Eventually the seller disappears, or the buyer realises that no item was ever coming.

2. The fake buyer

The criminal can also play the opposite role. They contact someone who is genuinely selling something and show enthusiasm: "I will take it, I'll pay right now." Then they send a link or a QR code and say it is to send the payment.

In reality it is a request for money. The seller, thinking they are about to receive payment, scans the code and enters their PIN. Instead of money coming in, the money goes out of their account.

The part that makes it worse: borrowed identities

The infographic describes a particularly cruel variant. Members of the armed or paramilitary forces often sell household goods and vehicles when they are posted elsewhere, and the public tends to trust them. Fraudsters exploit that trust.

It works in three steps. First, the criminal contacts a genuine serving person who has listed an item, pretending to be an interested buyer. To seem serious, they ask for identification, such as an ID card, canteen smart card or other documents, supposedly to verify the person.

Second, the fraudster uses those documents to create fake advertisements of their own, using the real person's identity as proof of credibility.

Third, a buyer sees an attractive price from a seller who appears to be a soldier, with an ID to "prove" it. The buyer relaxes, pays the advance charges, and is cheated.

There are therefore two victims: the buyer who loses money, and the person whose identity was borrowed without knowing.

Why it works

• Price bait. A bargain makes people act fast and ask fewer questions.

• Borrowed credibility. Uniforms and official-looking documents create automatic trust.

• Small amounts. An advance of a few hundred or thousand rupees feels risky only if you stop to think, and once you have paid the first one, stopping feels like admitting a mistake.

• Distance. Many of these "sellers" claim to be posted far away, which conveniently explains why you cannot see the item.

• Familiar tools. Sending a QR code or a payment link feels like normal digital business.

Practical rules that protect you

The advice from the infographic is simple and it works:

1. Never pay in advance without seeing the item and meeting the seller. If the goods cannot be inspected, do not pay.

2. Receiving money never needs your PIN. For any payment received through a link or QR code, you should not enter an MPIN or UPI PIN.

3. Remember the golden rule: entering your MPIN or UPI PIN is required only when you are paying out.

A few more habits help:

• Treat unusually low prices with suspicion, especially on vehicles and electronics.

• Be cautious about any request for "registration", "transportation", "packaging" or "GST" money before delivery.

• A photo of an ID card or uniform is not proof. Documents can be stolen or copied.

• If you are a seller, think twice before sending your identity documents to a stranger, even to a "serious buyer".

• If you are a seller, collect payment by giving your own QR code or account details, instead of scanning or clicking something the buyer sends.

• Meet in a public place and complete the exchange in person wherever possible.

The legal angle

Offences of this kind are generally dealt with under the Information Technology Act, 2000, including Section 66C (dishonest use of someone's identifying information) and Section 66D (cheating by personation using a computer resource), together with the cheating provisions of the Bharatiya Nyaya Sanhita. The exact sections depend on the facts recorded in the FIR and the view of the investigating agency.

If you have already paid

1. Stop all further payments, whatever new reason is given.

2. Call your bank immediately and ask for the transactions to be flagged and UPI blocked if needed.

3. Call the National Cyber Crime Helpline, 1930, as soon as possible.

4. File a complaint at cybercrime.gov.in.

5. Save the advertisement, chat messages, phone numbers, QR codes and transaction details. Take screenshots before the listing disappears.

6. Report the listing on the platform itself.

7. Report quickly. Under RBI's framework for unauthorised electronic transactions, reporting within three working days generally strengthens the customer's position where the fault does not lie with them. In scams where you authorise the payment yourself, banks may question that, so keep every record.

If your own documents were used by a fraudster, inform your unit or relevant authority and file a complaint about the misuse as well.

A closing thought

Online marketplaces are useful, and most people using them are honest. The trick is to remember that a deal that feels too good to be true usually is, and that a payment you are supposed to receive never needs your PIN. Slow down, see the item, meet the person, and walk away from anything that asks for money first.