Learn 9 Best Possible Ways to Prevent Internet Auction Fraud
Learn 9 Best Possible Ways to Prevent Internet Auction Fraud
Thousands of consumers have been fleeced by Internet auction fraud and lost all of their money… And even their merchandise too. Auction fraud was the single largest category of Internet related complaints in 2002, more than 51,000 consumer complaints were filed and since then the numbers has triple that in 2009. Law enforcement agencies are doing what they can to stop these crooks in their tracks, and responsible auction sites are trying to police their own market for added security measures… But, it’s not all so easy at times!
“The single most powerful tool to protect consumers is education”
As of 2009 majority of these so-called legitimate sites, are out right frauds. You know who they are, we can’t say these companies names because of legal ramifications. What we’ve uncovered was the consumers allegedly “won” the bid for merchandise through an Internet auction Web site, sent in their money, but never received the merchandise. In some cases the thieves combine serial identity theft to conceal their identities and divert the blame to the identity theft victim. There was one case on file in (Chicago) where one operator constantly changed his Internet auction account name to conceal the fact that although he accepted payment, he did not deliver the promised merchandise. He set up bank accounts and post office boxes in other people’s names, and directed that payment be sent to them. His identity theft victims were people with whom he had quarreled with that day, people whose identity information he and an accomplice had taken from the records of a suburban Chicago hotel, and even a dead man. There are many more cases like this arising every day about Internet auction fraud all across the United States and other foreign countries too.
Below are few tips to follow to avoid being taken by these thieves:
1. Understand as much as possible about how the auction works, what your obligations are as a buyer, and what the seller’s obligations are before you bid.
2. Find out what actions the web site/company takes if a problem occurs and consider insuring the transaction and shipment.
3. Learn as much as possible about the seller, especially if the only information you have is an e-mail address. If it is a business, check the Better Business Bureau where the seller/business is located.
4. Examine the feedback on the seller.
5. Determine what method of payment the seller is asking from the buyer and where he/she is asking to send payment.
6. If a problem occurs with the auction transaction, it could be much more difficult if the seller is located outside the US because of the difference in laws.
7. Ask the seller about when delivery can be expected and if there is a problem with the merchandise is it covered by a warranty or can you exchange it.
8. Find out if shipping and delivery are included in the auction price or are additional costs so there are no unexpected costs.
9. There should be no reason to give out your social security number or drivers license number to the seller.
Note: If the seller insists on using a particular escrow or online payment service you’ve never heard of, check it out. Visit its Web site and call its customer service line. If there isn’t one, or you call and can’t reach someone, don’s use that service.
A. Protect your privacy. Never provide credit card number, or bank account information until you have checked out the seller and the online payment or escrow service, if you’re using one, to ensure legitimacy.
B. Save all transaction information.
C. If you have problems during a transaction, try to work them out with the seller, buyer or site operator. If that doesn’t work, file a complaint with your state attorney general’s office and the FTC.