e-Com

E-auction is one in which participants bid for products and services over the Internet. The functionality of buying and selling in an auction format is made possible through auction software which regulates the various processes involved. Internet auction fraud is a growing epidemic worldwide, as online shopping has grown significantly every year that online shopping has been available. Most internet auction fraud cases involve straightforward scams where consumers allegedly win merchandise by being the highest bidder. All sounds good until they send the payment and never receive the merchandise.

Here are some tips provided to prevent e-auction fraud:

UNDERSTAND HOW THE AUCTION WORKS

Many online auctions simply list items that people want to sell. They don’t verify that the merchandise actually exists or that it is described accurately, and they can’t guaranty that the sellers will keep their promises.

CHECK OUT THE SELLER BEFORE YOU BID

Some auction sites have feedback forums with comments about the sellers based on other people’s experiences. Be aware that positive reports may have been “planted” by the seller and negative comments could be from a competitor. Other sources of information are state or local consumer protection agencies and the Better Business Bureau. Negative information is a good warning sign, but a clean complaint record doesn’t guarantee that your transaction will go smoothly.

BE CAREFUL IF THE SELLER IS A PRIVATE INDIVIDUAL

Many consumer protection laws don’t apply to private sales, though government agencies may take action if there are many complaints the same individual or criminal fraud is involved.

GET THE NAME AND CONTACT INFORMATION OF THE SELLER

The name, physical street address, email address, and phone number are helpful to have for checking the seller out and following up later if there is a problem. Don’t do business with anyone who refuses to provide that information.

ASK ABOUT DELIVERY, RETURNS, WARRANTIES AND SERVICE BEFORE YOU PAY

Get a definite delivery time and insist that the shipment is insured. Ask about the return policy. If you’re buying electronic goods or appliances, find out if there is a warranty and how to get service.

PAY BY CREDIT CARD

Under federal law, you can dispute the charges if you paid the seller with a credit card and the goods were never delivered or if they were misrepresented. If you are paying through an intermediary service, ask what happens in the case of disputes.

INFORM AUCTION SITES ABOUT SUSPECTED FRAUD

They may have policies to remove sellers from their sites if they use “shills” or don’t live up to their obligations.

Refer to: http://www.fraud.org/tips/internet/onlineauctions.htm