Internet Auction Fraud

Internet auction fraud represents 64% of all reported internet fraud according to the Internet Fraud Complaint Center. If you are considering using internet auctions sites for some of your holiday shopping this year, you'll find this advice helpful.

Is Your Purchase Protected?
It is your responsibility to understand how the auction works and what your obligations are as the buyer. Here is some protection information from two of the most popular internet auctions sites:

• eBay offers fraud coverage up to $200 for undelivered or misrepresented items for a $25 fee.
• Amazon.com offers fraud coverage up to $2,500 for undelivered or misrepresented items when you use "Amazon Payments".

Practice Precaution
Ask a lot of questions about the product, regardless of the item's description or photos. If you win the bid, print out the photos, descriptions, and e-mails exchanged with the seller. Be wary of:

• Items sold "as is"
• High shipping charges
• Significantly delayed shipping dates

Research the Seller
Most sites provide a seller's rating and feedback history for individual sales transactions. You'll want to:

• Seek out sellers with high ratings and positive feedback.
• Avoid sellers with multiple, negative feedback listings and those with no feedback at all.
• Get the seller's phone number and physical address. Verify the numbers by making a quick phone call.

Payment Options
Credit cards: Using a credit card online is usually a smart move, but when you use an online payment service like eBay's PayPal, you waive all of your chargeback rights because you are no longer dealing directly with the merchant. If the seller fails to send the merchandise, or if the seller is a liar, cheat, or thief; you are out of luck.
Escrow services: Using a reputable escrow service could prevent you from getting taken when bidding online. Escrow services hold your money (for a fee) and when you receive the merchandise, they release the money to the seller. Escrow services are advisable when you're buying something that costs more than what the website's fraud protection covers.

Play It Safe

• Do not deal with sellers who demand cash or third-party wire transfers. These are not traceable types of payments and offer no protection.
• Be weary of sellers living outside of the United States. Dispute resolution laws will vary by country.
• Insure the item and pay promptly. Keep all records until the item is received and verified.

This information was rewritten and summarized from its original source: Internet Fraud Complaint Center