You found the perfect car on Facebook Marketplace or Craigslist — well below market value. The seller has a compelling story. They just need a deposit to hold it. Sound familiar? This is one of the most common — and costly — online marketplace scams.

How the Car Deposit Scam Works

  1. A listing appears with an attractive vehicle, often priced 20–40% below market.
  2. The seller claims they're overseas (military deployment, missionary work) or dealing with a family emergency that forces a quick sale.
  3. They insist on a deposit via Zelle, Venmo, wire transfer, or gift card to "hold" the car for you.
  4. Once the deposit is sent, they disappear. The car doesn't exist.

Red Flags to Spot This Scam

  • Price significantly below market value (check Kelley Blue Book).
  • Seller is overseas, deployed, or otherwise unable to meet in person.
  • Request for payment before you see the car in person.
  • Payment requested via Zelle, wire, gift card, or cryptocurrency.
  • Too many photos or oddly generic responses to specific questions.
  • New or nearly empty seller profile.

Safe Car Buying Rules

  1. Never pay anything before seeing the car in person and test driving it.
  2. Meet in a safe, public location — police station parking lots are ideal.
  3. Verify the VIN through Carfax or a mechanic before any payment.
  4. Pay by credit card or bank financing — never by wire, gift card, or Zelle to a stranger.
  5. A real seller will never ask for a deposit before you've seen the vehicle.

Sources: FTC; Better Business Bureau Scam Tracker; Consumer Reports.