Saturday, July 5, 2008

TaKE nOTE!! e-aucTion FRAUD!!!

Online auction sites are amongst the top destinations for e-business and e-commerce trading. There are more than 250 online auctions so far. The most well-established being: eBay, Yahoo, and Amazon auctions.

With respect to forms of online auction fraud, there are several activities which constitute fraudulent behaviour including:

  • Non-delivery
  • Misrepresentation
  • Non-payment
  • Triangulation
  • Black-market goods
  • Multiple bidding
  • Shill bidding
  • Shield bidding

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

  • Be aware of phishings. Verify that you are receiving emails from the correct source and that you are logging in at the correct website.
  • When making payment, prefer using your credit card over online transfer.
    • DO NOT entertain emails received from outside of the auction website mentioning that the highest bidder has withdrawn and you are now entitled for a product.

    • NEVER make a deal with a seller outside the auction. Although they sound lucrative, you are at a very high risk of being cheated.

    • READ the auction website’s terms and conditions, buyer protection policy, refund policy before making a transaction.

    • Use appropriate warranty and documentation with it. If not, make sure that you intend to purchase it without that protection.

    • BE WARY of products that offer revolutionary results. In most cases, they are fraudulent claims.

    • DO NOT respond to emails that ask for your personal information, such as your log in details or credit card details.

    • READ the online auction website for feedback on the seller and a rating that they give to sellers and buyers. Most online auctions rate the sellers and buyers based on their transactions’ feedback.

    • READ the product features and the model number that you intend to purchase. Verify these with what is being advertised by the seller.

    • Avoid making a transaction if anything in the auction seems suspicious to you.