Things to note to prevent E-Auction fraud

Electronic Auction is a procurement tool which utilizes web-based technology to enable bidders to participate in dynamic and transparent pricing events. It has various forms such as English Auction, Reverse Auction, and Dutch Auction.


Although online auctions constitute one of the most successful Internet business models, auction fraud has become the largest component of all Internet fraud which are: 1) Failure to deliver, 2) Misrepresentation, 3) Shill bidding, 4) Selling black-market goods.


Here things to be take note to avoid online auction scams and related fraud:


1) Develop a familiarity with the product you want to buy. Search for the product online and verify that the specifications and seller photos are accurate, noting the photo caveats below. Compare the information to the original merchant site if possible.

2) Put the sellers' feedback in perspective and instead look at the big picture. How long has the party had an auction account? Are past purchases of similar value or is this a sudden high-ticket item? Is it a business and where is the seller located? These are some of the questions relevant to avoiding online auction scams and affects how readily you are protected.

3) Many sellers and auction enthusiasts will alert the public on how to avoid online auction scams for a particular product. To minimize the risk of landing a fake, look for an established dealer and/or a certificate of authenticity from a third-party.

4) Deal with sellers that are covered by a Buyer Protection plan such as Square Trade and PayPal, but note the monetary limits and the fine print. These are not failing proof coverages and recovering your money may take weeks to months. For lower cost items it is likely sufficient. For higher ticket items consider an escrow arrangement if you have any doubts.

5) Keep your transaction information. Keep your own record of the transaction when you're buying. You want a record of the seller's identification, the item description, emails sent and received, plus the time, date and price of your bid.

6) Passwords. Never have the same password on your eBay and PayPal accounts or indeed on any other financial or personal site. Change your passwords every 30-60 days on both eBay and PayPal.


To report Internet fraud, you can contact the Federal Trade Commission: (877) FTC-HELP (877-382-4357 or www.ftc.gov). You can also contact Internet Fraud Watch(www.fraud.org).