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Online Auction Fraud

eBay sales may have grown 51% last year overservice with trackingCheck out the buyer's
the previous year, but general onlinereputationAccept payment from only one Paypal
complaints jumped by 66.6% over the previousaccount per buyerLimit credit card
year to some 207,000+ complaints in 2004.paymentsEnhancing Your Safe Seller ImageHere
The Internet Crime Complaint Center (IC3), aare a few tips that will help improve your
partnership between the FBI and the Nationalimage as a safe seller for your
White Collar Crime Center (NW3C), stated inbidders.Identify Yourself - Make use of the
its yearly report that 71.2% of allabout me pages to let your customers know who
complaints received pertained toyou are, how long you've been in business and
auctions.Online fraud is a growing problem onhow much their business means to you. Be
the internet and the auction segment is farhonest.Feedback Ratings - Auction buyers want
from immune. The IC3 reports that mostto see 100% positive feedback.Methods of
complaints consist of late or no shipment ofPayment - Make it easy for your customers to
products, items that don't match advertisedbuy but consider convenience, cost and
condition and bogus payment or escrowsecurity in choosing any payment method you
services.If you decide to offer "all items tooffer.Full Disclosure - Your auction listings
be shipped within 24 hours", make sure youshould clearly state the condition of the
keep your word, and go to great lengths toitem you're auctioning, your shipping
honestly represent and describe the item ininsurance and return policies.Bonding
your auctions. Your bidders will appreciateprograms - A number of bonding programs are
your honesty and it will eventually show upavailable on the internet. One of the more
in your feedback.As consumer fears increase,popular is BuySafe ( In a bonding program
there are a number of common sense ways tothe seller agrees to certain obligations such
help protect you from fraud, as well asas shipping on time, representing the item
enhance your reputation as a trustworthycorrectly, and standing behind the
seller and set you apart from the crowd.Watchtransaction. In return the seller can
Out for Bad Checks, Money Orders and Cashiersdisplay a seal on their auctions showing
Checksbidders they are honest sellers and providing
transaction insurance in some cases up to
Years ago I had a buyer who complained$25,000.Other programs you should be familiar
rather loudly when I didn't ship an item aswith  include:IDVerify
soon as I received the check in the mail. In
hind site it was a good decision to hold theSquareTrade
shipment since the check ended up being
fraudulent. Bad checks, money orders, andTrust-eIf You Become a Victim of Online
cashiers checks are rampant in ecommerceFraudYou need to know exactly what should be
today. The simplest way to offset the dangerdone in the event you are victimized. Make
of bad paper is not to ship the auction itemyour plan now, before it happens. The most
until the check, money order or cashier checkrecommended steps to take if you are
clears your bank forvictimized are listed below but please keep
payment.OverpaymentsNever accept anyin mind these are general recommendations and
overpayments for any item. One of the moreyou should have you own plan based on your
popular scams today is for a buyer to send aneeds.File a complaint with your auction site
cashiers check for an amount that is higher
than the agreed upon final price. They thenFile a complaint with the Federal Trade
claim it was in error and ask the seller toCommission
kindly return the overage when the item is
shipped. Off goes the item, the overageFile  a  complaint  with  the  IC3
amount in good money, and the defrauded
seller finds out too late the cashiers checkFile a complaint with the National Fraud
was fake.Use an Escrow Service for HighInformation  Center
Priced ItemsThe primary purpose of escrow
services is to protect buyers and sellersContact your local and state law enforcement
from fraud. Basically what they do is toagencies
accept the money from the buyer and hold it
until the buyer receives and approves theContact the local and state law enforcement
merchandise. Please note that fake escrowagencies  in  the  perpetrator's  home  area
services are increasing on the internet. If
a buyer contacts you after a sale andFile a complaint with the shipping company
recommends an escrow service you are notyou  used
familiar with BEWARE. At present eBay only
recommends one escrow company: ForIt the perpetrator is a business and a
information go to Records, RecordsKeeps amember of the Better Business Bureau you
copy of every transaction detail from theshould also file a complaint there.Further
original auction listing to the last email.readingPaypal Seller Protection Policy (go to
You will need that kind of proof to validateyour Paypal account)FTC recommendations read
your claims if you should find you need tothe entire 2004 IC3 Internet Fraud Report
file a complaint.Protect Yourself by BeingImportant  Fraud LinksFind Your Local Police
EducatedAt the very least you need to be
knowledgeable about your legal obligations asFBI  Internet  Fraud  Unit
a seller and familiar with the fraud
protections and policies for the auctionFTC  Internet  Fraud  Unit
sites and payment processing services you
use. eBay and Paypal have extensive sectionsUSPS Mail Fraud Copyright 2005 Steven
on their websites dedicated to fraud policiesWoodward - All Rights ReservedSteven Woodward
and protections. You should take the time tois the owner, editor and publisher of the
read through these or similar informationAuction Sellers Network (ASN); a web site for
pages for the sites and services you use on aindividuals and companies who are serious
regular basis and be very familiar with theabout utilizing the online auction
material.A few of the key recommendationsmarketplace for their business. In addition
from Paypal's Protection for Sellers sectionto topical articles, ASN provides an
include:Ship only to the address listed onextensive resource center, news feeds, member
the Transaction Details pageUse a shippingforums and classified ads.



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