The IFSO Scheme investigated a recent case involving “Ajay” – a pseudonym used to protect the person’s privacy – who was selling car parts on behalf of his company, including a gear box, motor, clutch, and an aluminum radiator. These items were listed on Facebook Marketplace, and a buyer agreed to purchase them for $10,000.
A few days later, the buyer claimed to have made the payment and provided a copy of a New Zealand driver’s license, purportedly belonging to their partner. A woman who identified herself as the buyer’s sister collected the items from the company’s premises. However, it was later discovered that no payment had been made. Ajay filed a police report and submitted an insurance claim on behalf of his company.
The insurer rejected Ajay’s claim, citing the fraud exclusion clause, which stated that “loss caused by… any… false pretense practiced on you” was not covered.
Ajay subsequently lodged a complaint with the IFSO Scheme. After reviewing the police report, which categorised the incident as “obtaining by deception (more than $1,000)” and labeled it “FB MP [Facebook Marketplace] Fraud $10,000,” the IFSO Scheme determined that there was sufficient evidence to support the claim that the items were obtained under false pretenses by the buyer and that the insurer was within its rights to deny the claim.
