Things to take note to prevent e-auction fraud when a consumer participating in an e-auction

E-auction is an auction conducted online. Nowadays, buying new or used products through online auction is become so popular. However, e-auction fraud also has grown quickly due to the fast cash and hard to trace aspects of online transactions. Examples of fraud are set up fake accounts, order goods never delivered, or even buyers sending fake checks, etc. Therefore, consumers need to be careful when deal with online auction.

Here are some things to take note that might useful to the consumers:

• Learn how the e-auction runs. Before you make a bid, find out what obligations you have as a buyer and seller. And also verify that does the auction site provide insurance that covers buyers up to a certain amount.

• Don’t judge the product by initial appearances. It can be hard to validate a seller’s claims about the value of an item, and descriptions or photographs on websites can be misleading. Know as much as you can about the item you wish to purchase.

• Check the seller’s feedback rating if available on the auction site. Read any comments left by previous buyers to find out seller’s trustworthy and honest. Call the seller to see if the phone number is working, or send an email to see if the email address is active.

• Contact the seller before bidding. Find out what type of payment is required, when you can expect delivery, what the return policy is, if the merchandise is covered by warranty, and if shipping and delivery are included in the price.

• Refuse to give out your bank account number or identity card number to the seller. Protect your personal information to reduce the risk of from falling victim to identity theft fraud.

• For higher priced items you should consider an escrow service. An escrow service acts as a middleman between buyer and 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 it releases the money to the seller.

For further information, please refer:
Tips for auction buyers
Internet auctions-A guide for buyers and sellers