Internet auction sites, such as eBay, can be great tools for finding cheap, unique products. But the advantages don’t come without drawbacks, not the least of which is the potential for fraud. In fact, online auction sites are the main source of complaints about online fraud. So, if you plan to bid on that must-have item, keep the following tips in mind:
Tip #1: Don’t Wire Money
The method of payment relates to your potential exposure to fraud. Paying by using a wire-transfer service or sending cash through the mail is strongly discouraged. It is impossible to get the money that you have wired, or sent, back. Stick with credit cards or PayPal if possible: the money is easier to track and many credit cards offer fraud protection.
Tip #2: Check Buyer Reviews
Many online auction sites allow you to see the reviews that other buyers have given a particular seller. Look for positive reviews and large sample size. A seller who has only one review may have just used a friend or a fake account to provide that review.
Tip #3: Signature Upon Arrival
Another tactic a lot of fraudsters like to use is to take your money and never send the item you paid for. If you complain, the fraudster can claim that he or she sent the item but that it got lost in the mail. You can protect yourself is by demanding shipping that requires your signature when the item is delivered. Also, ask your seller if they would be willing to ensure the item before transferring any funds.
Tip #4: It May Be Too Good to be True
If a deal sounds too good to be true, then chances are it is. Look at the prices of comparable products. If the price difference seems especially large then you may want to be careful, especially if you don’t have assurances that the seller is to be trusted.
Tip #5: Keep Record of Your Payments
Any documentation you receive at the time of the purchase and after – like email confirmations, receipts, tracking information, and packing slips – should be saved in case you run into issues when you receive the product.
To be extra careful, take photos of the items at the time of receipt and post a review on the online auction site. This is your way of helping other buyers determine if the seller is being transparent with them when they go to buy from the same person.
Tip #6: Speak Out If You Experience Fraud
If you never received an item, or the item was considerably different from what was advertised, report online auction fraud. It’s common for buyers to feel embarrassed or ashamed after experiencing fraud – to think you “should have known better.” But this thinking does nothing to protect future buyers or hold the fraudulent seller accountable.
Report online auction fraud at the Federal Trade Commissions website or the National Fraud Information Center. And if you used a platform like eBay, you can report fraud through their website.