The Federal Trade Commission and 29 state Attorneys General have launched a law enforcement crackdown targeting Internet auction scams that bilked thousands of consumers out of their money and merchandise. The crackdown, "Operation Bidder Beware," coordinated by the FTC in conjunction with the National Association of Attorneys General, resulted in 57 criminal and civil law enforcement actions and a related consumer education campaign.
Auction fraud is the single largest category of Internet related complaints in the FTC's Consumer Sentinel database, which logged more than 51,000 auction complaints in 2002. "The most effective way to fight Internet auction fraud involves a team approach among law enforcers," said Howard Beales, Director of the FTC's Bureau of Consumer Protection. "We're working with partners virtually coast to coast to stop scammers in the virtual world. These kinds of cooperative law enforcement actions will help ensure that online auction fraud is going, going, gone from the scene."
"The single most powerful tool to protect consumers is education," said Washington State Attorney General Christine Gregoire.
In addition to the law enforcement, the FTC, 29 Attorneys General and four local law enforcers are launching a consumer education campaign to alert consumers about Internet auction fraud, and provide tips on how to avoid falling prey to it. Consumer tips include:
Become familiar with the auction site. Find out what protections the auction site offers buyers. Don't assume one site's rules are the same as another's.
Before bidding, find out all you can about the seller. Avoid doing business with sellers you can't identify, especially those who try to lure you off the auction site with promises of a better deal.
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.
Protect your privacy. Never provide your Social Security number, driver's license number, 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.
Save all transaction information.
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 at www.ftc.gov or call toll-free 1-877-FTC-HELP (1-877-382-4357).
Check out the FTC's Internet Auctions: A Guide for Buyers and Sellers, available at the FTC's Online Shopping Web site at http://www.ftc.gov/onlineshopping for other tips on how to avoid Internet auction fraud.
eBay listed additional tips on its own announcement board Wednesday. In addition to the FTC’s safety tips, eBay advises the following to protect user accounts:
Protect your identity. eBay will never send you an email asking for you to enter personal information – credit card number, password, or other – in the email itself.
Be cautious when clicking on a link in an email. Please be aware that just because an email appears to be sent from an @ebay.com email address does not guarantee that it is genuine. If you have any doubt, simply open a new browser and type www.ebay.com, and use the Site Map to navigate the site.
If something goes wrong, take action. Report all suspicious emails to spoof@ebay.com. If you believe your identity has been stolen, contact your local law enforcement authorities.
