Pokemon Card Scams: How to Protect Your Business from Fraud
After 10+ years running Break Check Barragan, I've seen every scam in the Pokemon card world. I've been burned, I've caught scammers red-handed, and I've built systems that protect my business from fraud. Today I'm sharing all of it so you don't have to learn the hard way.
The reality is harsh: fraud costs Pokemon card sellers thousands of dollars every year. One seller I mentor lost $1,200 in a single month before he tightened up his processes. Let me walk you through the seven most common scams and exactly how to defend against them.
The 7 Most Common Pokemon Card Scams
1. The Return Swap
This is the scam that got me early on. A buyer purchases a NM Charizard VMAX worth $85, then files a return claiming it arrived damaged. They send back a LP copy worth $40 and pocket your pristine card. I lost about $300 across three transactions before I caught on.
How it works: The scammer already owns a lower-condition copy of the same card. They buy your better copy, swap them, and return the worse one.
2. Counterfeit Card Sales
Fake Pokemon cards have gotten disturbingly good. I recently examined a counterfeit Moonbreon (Umbreon VMAX Alt Art) that would fool most casual buyers. The seller was asking $180 for a card worth $250+ when authentic. That slight discount is the red flag. If a deal seems too good, something is off.
How it works: Scammers sell high-quality counterfeits at 60-80% of market value. The price is low enough to be tempting but high enough to avoid suspicion.
3. Chargeback Fraud
A buyer purchases $500 worth of cards, receives them, then disputes the charge with their credit card company claiming they never got the package. Without tracking and signature confirmation, you lose the cards AND the money.
How it works: The scammer exploits buyer protection systems, knowing that credit card companies often side with buyers by default.
4. Collection Bait-and-Switch
Someone contacts you about selling their "amazing vintage collection" with photos showing Base Set holos, first editions, and Shadowless cards. You agree to a price of $2,000 based on those photos. When you meet up, the collection has been swapped for a pile of unlimited commons with a few holos mixed in. The actual value is maybe $200.
How it works: Scammers use photos from the internet or from a collection they temporarily borrowed to lure you into a deal.
5. Fake Grading Labels
This one is increasingly common. A PSA 10 Base Set Charizard is worth $5,000+. A raw NM copy is worth $400. Some scammers create fake PSA or BGS labels and slabs to inflate the perceived value by 10x or more. I inspected a "PSA 9" Lugia that turned out to be a $15 fake slab with a $60 card inside.
How it works: Scammers buy cheap custom cases, print fake labels, and sell raw cards as professionally graded. Check out our authentication guide for verification methods.
6. Shill Bidding
On auction platforms, a scammer uses multiple accounts to bid up their own items. That Pikachu Illustrator promo that "sold" for $8,000? Three of the bidders were the same person. The real buyer ends up paying $3,000 more than the card is worth.
How it works: Fake accounts create artificial demand, pushing real bidders to pay inflated prices.
7. Stolen Credit Card Purchases
Someone buys $2,000 worth of high-value singles from your store using a stolen credit card. You ship the cards. Two weeks later, the real cardholder disputes the charge, and you lose everything.
How it works: Scammers use stolen card numbers for large purchases, targeting high-value items they can quickly resell.
Prevention Strategies for Sellers
I use every single one of these in my daily operations. They've saved me thousands.
Video Record Everything
Cost: Free. Value: Priceless.
- Film yourself packing every order over $50
- Record the card front and back, the packaging process, and the sealed package with the shipping label visible
- Store videos for 90 days minimum
- This single habit has won me three chargeback disputes totaling $1,400
Photograph Card Condition
- Take timestamped photos of every card before shipping
- Include close-ups of corners, edges, surfaces, and centering
- Use consistent lighting so condition is clearly documented
- Save photos organized by order number
Require Signature on Delivery
- For orders over $100, always require signature confirmation
- It costs $3-5 extra but saves you from "never received" claims
- On eBay, orders over $750 require signature for seller protection anyway
- I require signatures on anything over $75
Know Your Platforms' Policies
Each platform has different seller protection rules. Understand them before you need them, not after. We cover platform-specific rules in detail in our platform compliance guide.
Prevention Strategies for Buyers
If you're buying inventory, you need protection too.
Check Seller Reputation
- Minimum 100 transactions and 98%+ positive feedback
- Read the negative reviews carefully for patterns
- New accounts selling high-value cards are a massive red flag
- If they're selling a PSA 10 Charizard with 3 feedback, walk away
Inspect Before You Pay
- For in-person collection purchases, examine every card before handing over money
- Bring a loupe, UV light, and a known authentic card for comparison
- Never let the seller rush you through inspection
- If they won't let you inspect, they're hiding something
Use Buyer Protection
- Always pay through platforms that offer buyer protection
- PayPal Goods and Services gives you 180 days to dispute
- Never pay via Venmo, Zelle, Cash App, or crypto for purchases from strangers
- The 3% PayPal fee is cheap insurance on a $500 purchase
What to Do When You've Been Scammed
Even with precautions, it can happen. Here's your action plan. For a deeper dive into managing business risks, read our guide on protecting your business from risks.
Step 1: Document Everything Immediately
- Screenshot all messages, listings, and transaction details
- Save tracking information and delivery confirmation
- Photograph the item you received (if applicable)
- Write a timeline of events while your memory is fresh
Step 2: File a Platform Dispute
- File within 24 hours if possible
- Provide all documentation in your initial claim
- Be factual, not emotional, in your description
- Reference the platform's specific seller/buyer protection policies
Step 3: File a Police Report
- For losses over $500, file a police report
- This creates an official record and is required for some insurance claims
- Provide all documentation to law enforcement
- Online fraud can be reported to the FBI's IC3 (Internet Crime Complaint Center)
Step 4: Initiate a Chargeback (If Applicable)
- Contact your credit card company if the platform dispute fails
- Provide all documentation including the police report
- Chargebacks typically take 30-90 days to resolve
- Your success rate increases dramatically with thorough documentation
Insurance and Legal Protections
Once your inventory exceeds $5,000, you need real protection. I learned this when a burst pipe damaged $3,000 worth of inventory that my renter's insurance didn't cover.
Business Insurance Options:
- Inland marine insurance: Covers inventory in transit and storage ($300-800/year)
- General liability: Protects against customer claims ($400-600/year)
- Professional liability: Covers errors in authentication or grading advice ($200-400/year)
Legal Protections:
- Form an LLC to separate personal and business liability ($50-500 depending on state)
- Use written purchase agreements for collection buys over $1,000
- Keep records for 7 years minimum for tax and legal purposes
For a complete breakdown of insurance options, check out our guide on insurance and business protection.
Building a Scam-Proof Business
The best defense is a system. Here's my daily checklist:
- Every shipment filmed and photographed - no exceptions
- Signature required on orders over $75 - non-negotiable
- New buyer over $200? Verify their account history first
- Collection purchase? Inspect in person, pay after verification
- Graded card purchase? Verify the cert number on PSA/BGS website before paying
These habits take maybe 10 extra minutes per day and have saved me an estimated $5,000+ over the past three years.
Scams are part of the trading card business, but they don't have to destroy it. Build your systems, stay vigilant, and protect your hard-earned inventory. Learn more about spotting counterfeit cards to strengthen your defenses even further.
Next Read: Check out our Authentication Guide for step-by-step methods to verify card authenticity before you buy.