Yes, that is exactly what I saw too. I searched craigslist for iPhone 3g and I saw one listing that says 'iPhone 3G 16GB Officially Unlocked' and the price was $475 but here's the catch, the person that was advertising that iphone wants to get paid by Green Dot MoneyPak card which supposedly can be purchased from Wall Greens. I looked on eBay and for that same exact phone, it will cost around $800 so I right away flagged the AD. Like everyone is saying, if it's too good to be true, then it is probably is! So don't fall for this kind of scheme. Always do your research before jumping into something.
Yes no way anyone can even wholesale these phones! Just because someone says they have the item you should never shop with a vendor who does not take credit cards or paypal which pretty much protect you against bogus business deals!