Buyers and Sellers Remain Vulnerable to Social Engineering and Payment Fraud During Online Marketplace Transactions
Last updated
Many online marketplace transactions still rely heavily on interpersonal trust. Fraudsters exploit this trust through deceptive payment instructions, impersonation, and social engineering, causing financial loss, emotional distress, and reduced confidence in digital commerce.
Situation
Online marketplaces have enabled individuals and small businesses to reach customers far beyond their local communities. However, direct communication between buyers and sellers has also created opportunities for sophisticated fraud.
Who is affected
Individual sellers, small businesses, first-time online sellers, buyers, digital payment users, marketplace operators, and financial institutions.
How often
Reported as a regular experience. This has not been measured.
Root cause
Fraudsters exploit human trust, unfamiliarity with payment workflows, and communication outside trusted marketplace environments. Verification, contextual warnings, and fraud detection do not always intervene before users authorise risky transactions.
Current workaround
Users rely on advance payments, manual verification, trusted buyers, platform messaging, and personal caution before completing transactions.
Opportunity for improvement
This friction presents opportunities for AI-powered fraud detection, contextual payment warnings, stronger buyer verification, secure in-platform communication, behavioural risk analysis, and transaction systems that clearly distinguish between sending money and receiving money before authorisation.
Friction Journal observation
Digital marketplaces should strengthen trust rather than requiring users to become security experts before every transaction. Protecting honest people from manipulation is as important as enabling commerce itself.
About this record
Status: Initial observation. Based on lived experience, not a verified study. This record may be updated as evidence is checked.
Impact: High. Serious harm or loss is likely, not just possible.
- Sources consulted
- Personal observation and everyday experience.
- Last updated
- Cite this record
- Friction Journal. “Buyers and Sellers Remain Vulnerable to Social Engineering and Payment Fraud During Online Marketplace Transactions.” FJ-000005. Last updated 22 October 2026. https://frictionjournal.com/frictions/fj-000005/