Is this a scam?

I would appreciate some help with this, which has happened to me in the last few days.  I listed an item on a site, not Audiogon but another one, and got an offer within a few days.  The offer was lower than asking price, but reasonable, so I accepted.  All of this happened with an exchange of emails.  The buyer wanted to send me a deposit which was about 1/4th of the total sales price, and that amounted to a few thousand dollars.  He said he would send the rest when the item was shipped.  I thought this was a little strange, but agreed to it -- today I received his deposit via Paypal Friends and Family.  Somehow I wish now that the money transfer hadn't happened.  But the good news is, I have not yet sent him the items.

The guy has very little purchase history on the site that was used to contact me.

He says he has a Freight Forwarder and and will have someone pick up the items.  All of this seems suspicious to me.  I fear that perhaps I have been paid with a stolen credit card number, for example.  Of maybe there is another angle here that I cannot perceive.  Has anyone else been through a process like this?  I think he is a scammer but don't know for sure.

Ag insider logo xs@2xscottwsmith

Call the bank that issued the card that you received the payment from and inquire if it is a stolen card. Try calling your bank to get the issuing bank's phone number, or ask them if they can advise you how to obtain the number. 

As note by dgluke, it is possible for funds to settle from a stolen card and be reversed at a later date. You want as much information as you can possibly get.

My policy is to never do a friends and family PayPal transaction with anyone I don’t personally know and when using PayPal will ship only to a PayPal verified address.

Best advise is do nothing. If a stolen card, the transaction will be reversed and the scammer, most likely, moved on. Then report suspected fraud to PayPal and USAM. If contacted by the supposed buyer, explain the payment was reversed (bank verified) and that you decided that you will only do a legitimate PayPal sale transaction, shipped to a PayPal verified address.