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Internet Auction Fraud



The vast majority of internet auction transactions are completed smoothly without incident. However, as with any business, there are always those that will attempt to defraud buyers. The most prevalent complaints of auction fraud involve sellers who fail to deliver the product and refuse to be accountable for their actions, and sellers who grossly misrepresent their auctions by selling fake or counterfeit items. There is some recourse than can be taken by the buyer in most circumstances.

Your first step if you feel you've been a victim of fraud is to make every effort to contact the other party yourself and attempt to work out the problem. Email the seller and allow reasonable time for a response. You may also acquire the sellers personal info from the auction site and attempt phoning. Keep in mind that with many (not all) internet auction transactions you are dealing with an individual or small home based business. Things do happen - people become ill, personal disasters occur. Its best to at least initially give the benefit of doubt. And above all remain civil. When reasonable attempts fail, there are steps you can take. If you're trading on Ebay you can go Here to read about their fraud protection program. Another option available is Square Trade, an independent third party service that provides a forum to work out disputes. Other useful links:


Reporting Fraud

Internet Crime Complaint Center is a partnership between the FBI and the National White Collar Crime Center. Legitimate complaints maty be filed using their online form.

The FTC Guide to Internet Auctions for Buyers and Sellers..very practical advice and FTC contact info

Internet Scambusters

National Fraud Information Center

The US Postal Inspection Service...this is the branch of USPS that handles mail fraud.

The FBI's Internet Fraud Complaint Center

Department of Justice Internet Fraud Site

Better Business Bureau

Escrow Fraud Tips

Vrane...free tools to check an auction sellers feedback history




Ebay and Paypal Phishing Scams

5 Tips to Protect Yourself from Ebay Scammers


A few tips for buyers:


* Check the sellers feedback - try and get a feel for the person you are dealing with from their past history and comments from previous buyers.

* When possible use your credit card for payment. You may be later able to obtain some recourse through your credit card company. Another option is to use an escrow service (a third party service that "holds" funds until buyer expresses satisfaction with purchase - usually used with more expensive items)

* Read and understand the auction you are bidding on completely. Have a reasonable knowledge of the items value. Be sure you understand exactly what it is you're bidding on and the sellers payment and shipping policies, particularly regarding returns and refunds.

* When unsure of a sellers terms or have a question about the item, email the seller BEFORE placing your bid.

*Know the auction site - not all sites operate by the same rules

* if you feel you've been a victim of fraud its very important that you print and keep every communication between yourself and the seller as well as a copy of the auction in question.





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