Online Auction Fraud
Online
auctions are very popular. Most auction goers are happy with their experiences,
but four in ten buyers and half of sellers claim they have encountered problems
with Internet auctions.
Many buyers
pay by sending a cheque or postal order directly to the seller. That is fine if
everything goes well, however, if there is a problem, the money is already
gone.
The most
common problem for buyers is late delivery. Other problems include receiving
items that are different than those promised, items arriving in damaged
condition, and never receiving the items at all. Sellers report problems such as
late payment, non-payment, buyer's changing their minds, cheques bouncing and
buyers using stolen credit cards.
Prevention
Reduce the
risk of On-Line Auctions by using credit cards for payment. This way the sellers
get their money immediately, and buyers can dispute the charges if the
merchandise was misrepresented or not delivered.
Understand as
much as possible about how the auction works, what your obligations are as a
buyer, and what the sellers obligations are before you bid.
Find out what
actions the web site/company takes if a problem occurs and consider insuring the
transaction and shipment.
Learn as much
as possible about the seller, especially if the only information you have is an
email address - if it is only a "free" address, for example at hotmail.com or
other such address then beware.
Examine the
feedback of the seller - but do not just look at the summary, check out whether
they have good feedback as a seller or whether the feedback has come from other
sellers in small transactions.
If a problem
occurs with the auction transaction report the situation to the auction site as
soon as you can – there may be strict timescales if you are to obtain protection
against fraud.
If you have
used an online payment facility, for example Paypal, make sure you report the
transaction and take steps to recover your money. Do not accept excuses from the
seller, make sure you lodge any complaint within the time-scales of the payment
agency - better be safe than sorry!
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