(click to link to the webpage)There are several types of e-auction fraud identified. Among them are:-
Bid shielding i.e. having phantom bidders bid at a very high price at the start of an auction and pull out at the last minute causing a bidder of a much lower price to win.
Shilling is by placing fake bids on auction items. The purpose here is to artificially jack up the bidding price.
Mighty Bids
(this website is currently unavailable)
Besides, e-auction fraud can also appear in a way whereby fake photos are taken and misleading descriptions given, improper grading techniques, selling reproductions as originals, failure to pay the auction house, high shipping costs and handling fees, failure to ship merchandise, loss and damage claims and others.
As such, it is important for users to know how to protect themselves from these frauds.The followings are several steps in protecting yourself against e-auction fraud:-
- User identity verification – a voluntary program that encourages users to supply eBay with information for online verification.
- Authentication service – a service to determine whether an item is genuine and described appropriately.
- Grading services – a service that determines the physical condition of an item.
- Feedback forum – a forum that provides users with the ability to comment on their auction experiences with other individuals.
- Insurance policy – investing in insurance policy that offers by the auction websites. For example, eBay offers insurance underwritten by Lloyd’s of London at no cost to eBay users.
eBay
(click to link to eBay auction)Meanwhile, here are a few things buyers should take note of when participating in an e-auction.
Besides, buyers are adviced to check the seller’s reputation before purchase. Many auction sites have a section where every seller’s feedback score is displayed. Some sites even have a community-ranking system designed to every user’s profile so that buyers can always voice out their comments or feedbacks.
In addition to that, many sites provide buyer protection, for example courier delivery. Therefore, in cases where you don’t get what you pay for, you can always get a refund from the website.
On the other hand, buyers must also play their part in taking extra precautions and be smart in their purchase. For example, buyers must constantly bear in mind never to wire money to anyone’s account under any circumstances while paying. Instead, they should use one of the methods authorized by the website, such as paisa pay. Buyers must also read the rules of insurance before fishing out their credits. Most importantly, buyers must never give out their credit card numbers or any personal bank details via email.
Buyers also have to be careful as sometimes some sellers attempt to drive up the price of their own auctions by having several fake accounts. They can have multiple eBay identities that are all controlled by them, bidding on the same auction items you want neck to neck and it works especially when you start to get very involved with the auctions. Thus, buyer gets ego in the process of getting the product and foolhardily fell for the trick, causing him/herself to pay extra. In order to prevent this, buyer can check the seller’s auctions that have already closed and see if the same usernames are continually bidding (but never winning) in this auction.
On the other hand, if a buyer receive an email from a seller shortly after an auction closes stating that the winning bidder has defaulted and he or she is now the winner, chances are the seller is trying to scam not only one but many buyers. This is because; it takes several days for a bid to be defaulted. So if a buyer receives such emails within 3 days since the auction ended, beware!
Here is a link to some best auction websites
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