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ONLINE BUSINESS HELP

Tips to Avoid Online Auction Fraud
By: Developer Shed
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    2003-11-05

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    Tips to Avoid Online Auction Fraud
    by John Lynch

    This article may be reproduced in any ezine or website provided
    the resource box at the end is included.


    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 posting pictures of items
    for sale, only to include 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 product, buyers are obviously
    outraged.


    Steps to avoid online auction fraud


    1) Check seller's feedback

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


    2) Find out seller's contact details

    Before you enter into a deal, try to establish contact with the seller.
    On eBay you can search information on a member by visiting the
    Find Members page. If you can get a phone number or an email
    address, you have a better chance of solving any future problems.
    You could establish contact with the buyer by requesting further
    information 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 companies 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 money via credit card or
    bank account.


    4) Use an Escrow Service

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

    The escrow service holds the item and the money 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 extra to use this service.
    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 you're unhappy with the goods or you have not received them,
    Ebay operates a fraud protection program. 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 use the above tips, you should not fall victim to
    auction fraud.


    © 2003 John Lynch



    Visit http://www.merchant-account-service.com/ebay.html for a FREE extensive auctions course on how to start a successful online auctions business.
    DISCLAIMER: The content provided in this article is not warranted or guaranteed by Developer Shed, Inc. The content provided is intended for entertainment and/or educational purposes in order to introduce to the reader key ideas, concepts, and/or product reviews. As such it is incumbent upon the reader to employ real-world tactics for security and implementation of best practices. We are not liable for any negative consequences that may result from implementing any information covered in our articles or tutorials. If this is a hardware review, it is not recommended to open and/or modify your hardware.

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