Online Auction Fraud

eBay sales may have grown 51% last year overrecommendations from Paypal's Protection for
the previous year, but general online complaintsSellers section include:Ship only to the address
jumped by 66.6% over the previous year tolisted on the Transaction Details pageUse a
some 207,000+ complaints in 2004. The Internetshipping service with trackingCheck out the
Crime Complaint Center (IC3), a partnershipbuyer's reputationAccept payment from only one
between the FBI and the National White CollarPaypal account per buyerLimit credit card
Crime Center (NW3C), stated in its yearly reportpaymentsEnhancing Your Safe Seller ImageHere
that 71.2% of all complaints received pertained toare a few tips that will help improve your image
auctions.Online fraud is a growing problem on theas a safe seller for your bidders.Identify Yourself
internet and the auction segment is far from- Make use of the about me pages to let your
immune. The IC3 reports that most complaintscustomers know who you are, how long you've
consist of late or no shipment of products, itemsbeen in business and how much their business
that don't match advertised condition and bogusmeans to you. Be honest.Feedback Ratings -
payment or escrow services.If you decide toAuction buyers want to see 100% positive
offer "all items to be shipped within 24 hours",feedback.Methods of Payment - Make it easy for
make sure you keep your word, and go to greatyour customers to buy but consider convenience,
lengths to honestly represent and describe thecost and security in choosing any payment
item in your auctions. Your bidders will appreciatemethod you offer.Full Disclosure - Your auction
your honesty and it will eventually show up inlistings should clearly state the condition of the
your feedback.As consumer fears increase, thereitem you're auctioning, your shipping/insurance and
are a number of common sense ways to helpreturn policies.Bonding programs - A number of
protect you from fraud, as well as enhance yourbonding programs are available on the internet.
reputation as a trustworthy seller and set youOne of the more popular is BuySafe ( In a
apart from the crowd.Watch Out for Bad Checks,bonding program the seller agrees to certain
Money Orders and Cashiers Checksobligations such as shipping on time, representing
Years ago I had a buyer who complained ratherthe item correctly, and standing behind the
loudly when I didn't ship an item as soon as Itransaction. In return the seller can display a seal
received the check in the mail. In hind site it wason their auctions showing bidders they are honest
a good decision to hold the shipment since thesellers and providing transaction insurance in some
check ended up being fraudulent. Bad checks,cases up to $25,000.Other programs you should
money orders, and cashiers checks are rampantbe familiar with include:IDVerify
in ecommerce today. The simplest way to offsetSquareTrade
the danger of bad paper is not to ship the auctionTrust-eIf You Become a Victim of Online
item until the check, money order or cashierFraudYou need to know exactly what should be
check clears your bank fordone in the event you are victimized. Make your
payment.OverpaymentsNever accept anyplan now, before it happens. The most
overpayments for any item. One of the morerecommended steps to take if you are victimized
popular scams today is for a buyer to send aare listed below but please keep in mind these are
cashiers check for an amount that is higher thangeneral recommendations and you should have
the agreed upon final price. They then claim it wasyou own plan based on your needs.File a complaint
in error and ask the seller to kindly return thewith your auction site
overage when the item is shipped. Off goes theFile a complaint with the Federal Trade
item, the overage amount in good money, andCommission
the defrauded seller finds out too late the cashiersFile a complaint with the IC3
check was fake.Use an Escrow Service for HighFile a complaint with the National Fraud
Priced ItemsThe primary purpose of escrowInformation Center
services is to protect buyers and sellers fromContact your local and state law enforcement
fraud. Basically what they do is to accept theagencies
money from the buyer and hold it until the buyerContact the local and state law enforcement
receives and approves the merchandise. Pleaseagencies in the perpetrator's home area
note that fake escrow services are increasing onFile a complaint with the shipping company you
the internet. If a buyer contacts you after a saleused
and recommends an escrow service you are notIt the perpetrator is a business and a member
familiar with BEWARE. At present eBay onlyof the Better Business Bureau you should also file
recommends one escrow company: Fora complaint there.Further readingPaypal Seller
information go to Records, RecordsKeeps a copyProtection Policy (go to your Paypal account)FTC
of every transaction detail from the originalrecommendations read the entire 2004 IC3
auction listing to the last email. You will need thatInternet Fraud Report Important Fraud LinksFind
kind of proof to validate your claims if you shouldYour Local Police
find you need to file a complaint.Protect YourselfFBI Internet Fraud Unit
by Being EducatedAt the very least you need toFTC Internet Fraud Unit
be knowledgeable about your legal obligations as aUSPS Mail Fraud Copyright 2005 Steven
seller and familiar with the fraud protections andWoodward - All Rights ReservedSteven
policies for the auction sites and paymentWoodward is the owner, editor and publisher of
processing services you use. eBay and Paypalthe Auction Sellers Network (ASN); a web site for
have extensive sections on their websitesindividuals and companies who are serious about
dedicated to fraud policies and protections. Youutilizing the online auction marketplace for their
should take the time to read through these orbusiness. In addition to topical articles, ASN
similar information pages for the sites andprovides an extensive resource center, news
services you use on a regular basis and be veryfeeds, member forums and classified ads.
familiar with the material.A few of the key