What is 'middleman scam'? PNP-ACG explains and warns netizens

The Anti-Cybercrime Group of the Philippine National Police (PNP-ACG) warned customers of online selling against another modus of scammers that take advantage of offers at the Facebook Marketplace.

PNP-ACG director Sidney Hernia said the modus, which he dubbed as “Middleman Scam”, involves bogus sellers who post items at Facebook Marketplace and use the transaction receipt of buyers in dealing with the real sellers.

This was disclosed in the operation of the ACG operatives last week which resulted in the arrest of a certain Juan who posed as a legitimate seller of modems.

Based on the investigation that stemmed from the complaint of the victim, the suspect posted that he is selling brand new modems. When the victim availed 10 units, the suspect asked for the payment and transaction receipt.

“The transaction receipt that the victim sent was used by the suspect to avail 10 units of modem to the real seller,” said Hernia.

“The delivery was processed but was later cancelled when the real seller didn't receive the payment. With the motorcycle rider's assistance, they discovered that they were caught in a middleman scam,” he added.

The suspect was arrested in Sampaloc, Manila and is now facing a case of violation of Article 315 (Estafa/Swindling) of the Revised Penal Code in relation to Section 6 of RA 10175 (Cybercrime Prevention Act of 2012).

Hernia explained that the ‘middleman scam is a type of scam where an individual or group positions themselves as an intermediary between two parties in a transaction, but instead exploits the trust of both parties to defraud them and disappears after receiving the payment or the items.

He then reminded netizens to always verify the seller or buyer by checking their profile, reviews, and ratings on the platform, if available. 

“It is also important to use secure payment methods that offer buyer or seller protection. Communicate directly through the official contact information and avoid dealing with intermediaries or third parties who claim to facilitate the transaction,” said Hernia.