Half of online classifieds are scams

More than 50% of ads on online classifieds sites are scams, according to newly-launched Kalahari Ads.

“The proliferation of classified advertising sections in newspapers and Web sites have revolutionised the buying and selling process of everything from used laptops to properties. However, sometimes these sellers have nothing to sell, but scams and fraud,” says Kalahari Ads.

According to the service, more than 50% of ads placed in high-risk categories, such as electronics, pets and cellphones, on un-moderated online classifieds sites, are scams.

Bronwyn Johnson, head of marketing for Kalahari Ads, says: “We have a large number of online classifieds companies within our group, including Sjerlok and OLX. We've noticed a global trend of scams occurring in classifieds.

“The 50% figure is from our own experience through moderation of ads. Fortunately for visitors to our site, these are blocked before they even get to see it.”

Johnson explains that Kalahari Ads has stopped cash-strapped mothers from putting their babies up for rent to street beggars in the hopes that they would garner more sympathy from potential donors.

“We've prevented dealers from trying to sell highly illicit narcotics online, and have stopped numerous punters illegally trading in exotic animals such as parrots and pythons."

Kalahari Ads has also begun blocking countries, which it deems to be the worst culprits, from posting on the site. These countries include Cameroon, India, Nigeria, Ghana, Pakistan, Guinea, Bangladesh and Kuwait.

“We have recently added China to the list as they continue to sell second-rate products," adds Johnson.

"We also have an automated taboo list that identifies typical high-risk words and prevents them from posting that copy immediately. This is updated continuously. Furthermore, we have a team that moderates each advert submitted and assesses them on a case-by-case basis."

Johnson urges all online classifieds service providers to take a zero-tolerance approach to online scams and fraud.

"We have committed to publicly naming and shaming convicted fraudsters on a Wall of Shame to further assist our customers from falling prey to these con-artists. It is easier for us being South African-owned and managed, but international sites with a local presence also have a duty to actively prevent fraud and scam where possible."

Beyond money-making schemes, online classifieds have also begun earning a reputation for being used by criminals to identify victims for abuse, robbery and even murder.

A 12-week study of more than 6 500 Craigslist personal ads found that 84% were fakes. In another study, the AIM Group recently researched crime connected with Craigslist during the past year and earlier. According to their research, 20 murders (12 of them within the last year) have been linked to Craigslist since it began in 1995.

According to the report, a further 74 robberies, 31 assaults and a total of 330 crimes in the US have been linked by law enforcement to the use of Craigslist from February 2010 to February 2011.

“To be absolutely fair, Craigslist as an entity can't be blamed for the things that happen among its users,” notes founder of AIM Group Peter Zollman. “It's merely a facilitator of commerce, after all. And we understand, thousands or even tens of thousands of transactions happen safely between Craigslist aficionados.

“Long before Craigslist even, robberies were linked to newspaper classifieds from time to time.”

Gumtree has also recently made headlines for the wrong reasons. Last year, a man almost died in the UK after being lured to buy a car listed in a phony advertisement on the Web site. His attackers stole the cash he was carrying to purchase the non-existent car.

Speaking of what users can do to protect themselves, Zollman says that first and foremost, one should follow the old rules.

“Better still, know who you're dealing with. Buy and sell locally, with people you know. Rely on nearby markets, and media that verify who's placing the ads. Connect with people you trust through Facebook Marketplace or similar social network classifieds.”

Sharon Knowles, operational head of Kalahari Ads, oversees the moderation process and advises that there are telltale signs that make scams easily identifiable.

“Syntax, grammar and spelling are a good place to start. While language use will not be wrong per se, it will often just be odd and use strange phraseology,” says Knowles.

“Double check that the photograph and the copy in the ad are aligned. If the seller is advertising a Macaw Parrot, but the accompanying photograph is a Budgerigar then you know something is awry.”

Scammers are also rarely available to meet in person. “They might be away on business, called away for a family crisis such as funeral abroad, or are out of town.”

“We often find scammers offering to pay more than the advertised amount via cheque. This makes no sense. Why do they not have a bank account and why can they not get a money order?” asks Knowles.

“They then ask for the excess to be sent back to them via a moneygram service such as Western Union. Once the money is transferred, it can be collected from any Western Union office around the world. The transaction is untraceable. The cheque, although it reflects in your account, has not been cleared, bounces 10 days later and you sit out of pocket.”

Knowles adds that one should be wary of the extra fees such as postage fees or vet bills. “Some scammers are so eager to find their puppy a loving home that they are willing to give them away, but will ask for financial help with a vet bill or transport costs.”

“Our golden rule of thumb: if it sounds too good to be true, it generally is,” says Knowles.