We demonstrate the possibility of using a radio-frequency transverse susceptibility (TS) technique based on a sensitive self-resonant tunnel-diode oscillator as a biosensor for detection of cancer cells that have taken up magnetic nanoparticles. This technique can detect changes in frequency on the order of 10 Hz in 10 MHz. Therefore, a small sample of cells that have taken up nanoparticles when placed inside the sample space of the TS probe can yield a signal characteristic of the magnetic nanoparticles. As a proof of the concept, Fe3O4 nanoparticles coated with Au (mean size ~60 nm) were synthesized using a micellar method and these nanoparticles were introduced to the medium at different concentrations of 0.05, 0.1, 0.5, and 1 mg/mL buffer, where they were taken up by human embryonic kidney (HEK) cells via phagocytosis. While the highest concentration of Au-Fe3O4 nanoparticles (1 mg/mL) was found to give the strongest TS signal, it is notable that the TS signal of the nanoparticles could still be detected at concentrations as low as 0.1 mg/mL.