While most buyers and sellers on internet auction sites are honest, there is always the threat of underlying fraud.

Auction sites have had instances of sellers affixing pictures of items for sale, only to incorporate in extremely small print that buyers are only bidding for the photo rather than the item itself. When the photo arrives in the post and not the merchandise , buyers are obviously outraged.

Steps to avoid online auction fraud

1)Check sellers feedback

One of the best ways to judge a sellers honesty is to check his or her feedback. Most buyers will give feedback on a sale, rating the seller in the sellers Feedback Profile. If the feedback is negative, it will be very difficult for that seller to buy or sell anything on that auction page in future. Check the sellers feedback and if it is not overwhelmingly positive, do not buy.

2)Find out sellers contact details

Before you enter into a deal, try to establish contact with the seller. On eBay you can search acquired skill on a member by visiting the Find Members page. If you might get a phone number or an electronic mail address, you have a better chance of solving any future problems. You could establish contact with the buyer by requesting further experience about the nature of the product in which you are interested.

3)Payment Methods

Credit cards are the safest way to buy anything online for the simple reason that, in the case of fraud, most credit card businesses will cover the cost. Online payment services such as PayPal and FastPay are also popular with auction site users because of their safety. These are account-based systems that send funds via credit card or bank account.

4) Use an Escrow Service

For higher priced items you should consider an escrow service. An escrow accomadation acts as a middleman between the buyer and the seller to ensure a fair transaction.

The escrow service holds the item and the funds until the buyer has inspected and approved the goods. Only then does it release the money to the seller.

The only downside is that it will cost the buyer excess to use this accomadation . However, it is something to bear in mind when buying more expensive items.

5) Complaints/ Fraud Protection

Most online auction sites have a complaints procedure. For example,if youre unhappy with the goods or you have not received them, Ebay operates a fraud protection script. For more information go to :
http://pages.ebay.com/help/community/fpp-guide.html

FlipShark has a useful site on internet auction scams. www.flipshark.com/scams/ebayindex.html

The US Federal Trade Commission has a useful guide for buyers and sellers on internet auctions which has relevance to other countries.
www.ftc.gov/bcp/conline/pubs/online/auctions.htm

To sum up, most buyers and sellers on internet auction sites are honest. However, if you utilize the above tips, you should not fall victim to auction fraud.

2003 John Lynch

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