Online Auction Fraud - Top Warning Signs

[Ina]

I'm interested in writing more articles about how people can AVOID online auction fraud. It would help me to know how bidders evaluate auction descriptions.

Perhaps I can put a top 10 list together of warning signs, including misleading phrases, how people shade things to make them seem better than they are, how to evaluate feedback (what should you be looking for). And a list of don'ts.

This would really help me! And hopefully help others avoid learning these lessons the hard way. Please post your suggestions here. Thanks in advance. -Ina

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Ina Steiner, AuctionBytes.com

[litlux]

While there is no foolproof way to avoid auction fraud, these are the things I look at in deciding whether to bid or not.

1. Feedback, including the percentage of negs, the tone of replies to negs, plus I try to read between the lines of positives. A lot of buyers are reluctant to post outright negatives, but will "damn with faint praise" the problematic sellers. A good example is someone who posts a positive that says "Fast delivery though the stated $3.50 shipping was NOT priority."

A buyer or seller who then replies harshly to a neg, instead of factually, is a caution light to me.

2. Anyone who asks for payment by cash.

3. Anyone whose only method of payment is "cashiers check or money order".

4. I buy a lot of cds, dvds and vhs videos. I avoid all auctions that say the original box is missing or not included since it most likely means an illegal dubbed copy is being sold. I also avoid auctions for videos in which I feel there is a careful evasion of whether the video on sale is genuine. Some sellers can be very clever about this.

Here, too feedback can be helpful. I have seen positive comments like "As described though video quality was poor, possible copy."

5. Not providing essential information. The phrases that raise red flags are the seller washing their hands of any responsibility for an item's condition once it is sold. Things like "I don't know much about this item, so I am selling it as is" and "I haven't checked it out so I don't know if it works" and "Some stains which I will leave a more knowledgeable buyer to treat" are evasions to me and I hit the back button. Caveat emptor.

6. No answer to email query. If there is something missing like the size, or dimensions or composition of materials, I will email for a clarification before setting a bid price. The answer is very important. I am constantly amazed at the hostile tone of some answers. And, of course, no answer is a no-go.

7. Shipping, ah, controversial shipping. I want to know what the shipping method and costs will be. Sure I have bid on a few (very few!) auctions where the shipping was exceedingly high, and took it into account when placing a bid for something I had to have.

But most items are not unique, so I generally will move on when faced with excessive shipping charges. The reason is the feeling it gives me about the seller's view of the buyer (me) as being a patsy for such game playing. Certainly some allowance has to be made for packing and handling, but $10 to mail one video is ridiculous.

Of course, many of these jokers begin their aucitons for a dollar and use the shipping device as a way to gain an advantage over sellers who are less unscrupulous.

And, whether right or wrong, this tactic makes me wonder if the video itself is for real, or just a copy. Or a former rental copy which is not revealed.

High shipping makes me mistrustful of the seller's honesty and the number of questions it raises isn't worth the trouble to ask the seller.

8. I use a credit card for buying wherever possible as a final backup. I am happy to say that by following all the thoughts listed here, I have never had to initiate a chargeback to an ebay seller.

[ This Message was edited by: litlux on 2002-04-07 11:00 ]

[mbright1]

Mentioning damage and then not showing a picture of the damaged area.

Items being sold untested.

Electrical items with the cord cutoff. or "afraid to plug it in".

Flaws evident in the pics but not mentioned in the description.

No pictures, or using pics from the manufacturer's website.

Item is in storage response to questions.

Unable to give model or serial number.

[marfink]

[Yisgood]

What shocks me is that despite the numerous fraud stories, people are still bidding on auctions for high ticket items by newbie sellers with no feedback and hotmail or yahoo IDs. I once browsed the ebay digital camera auctions and found a seller like this selling just about every brand of expensive camera out at prices over $100 less than the lowest retail price. He only accepted money orders or paypal. I checked his paypal account by sending a payment and then cancelling before it was sent. He had a brand new, unverified, personal account. This meant he could only accept non credit card payments. I emailed Damon with the suggestion that they look into this and the next day he was NARUd. I emailed his bidders to tell them to exercise caution. A few thanked me. One replied rudely. Later he emailed to tell me that he had sent this seller a money order and never received his merchandise. The seller was in either Romania or Indonesia, I forget which. Good thing he didn't use Paypal or he would be blaming them. Some people have to be protected from themselves.

An old proverb that bears repeating: If it sounds too good to be true, it probably is.

By the way, while using your credit card may protect you against getting cheated on this particular transaction, you are still giving your CC info to a scammer. What he can do with it is far worse than the actual price of the item. Identity theft can cost you thousands of dollars. Though you may not have to pay the credit card, you can still lose the mortgage or the job you applied for. I don't understand folks who buy a $20 item and say, "I dont trust the seller for $20, but I will trust him with my credit card (and reputation)."



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http://www.ccs-digital.com
Digital cameras and accessories
auctionbytes73@ygoodman.com

[Ina]

Article in today's Wall Street Journal:
"PayPal's Woes Lead to Calls for More Industry Regulation," by Stacy Forster

Apparently, the FTC is still taking a hands off approach. They don't want to "hinder the growth of the sector"!

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Ina Steiner, AuctionBytes.com

[canvid13]

You can do all the things right and still be a victim.

I am one of the victims from alleged fraudist Barry Rieger (AKA Thebarry) on Ebay.

This seller had over 20,000 feedbacks and a strong record. He started an alleged Estate sale and has allegedly defrauded myself and over 200 others worldwide of over $300,000.00 during a one week period.

Ebay and Paypal have done ZERO to help in this case. The police and the FBI are involved. His lawyer has kept him out of jail to date.

It looks like we are all going to be out of our funds. After years we may get some sort of compensation if we sue.

In todays marketplace you have Zero protection for items under $25.00, especially if you pay via Paypal. If you initiate a credit card chargeback Paypal will charge you again or close your account.

The only rule is Buyer beware and an occasion you will be fooled.

It's unfortunately part of the business.

I speak as a bidder of hundreds of auctions and a seller of thousands.

The only thing you can do is specify that you want Delivery Confirmation and/or Insurance. If you have any doubts email the seller BEFORE the auction ends.

Their answer will give you a big clue.

Also, you have to give the seller a chance to resolve your case. Most times a package goes missing it has nothing to do with a seller. Yet bidders always jump to the conclusion that the seller has ripped them off.

I have a shelf full of packages returned because bidders have moved, not accepted, not found, wrong addressed, and many more other strangely handled situations.

I also have envelopes from bidders who send payment without a return address or what they had bought.

So beware, take it slow and if it's too good to be true it probably is! Don't be afraid to ask questions. You may not get the answer you want but it's safer!

jamie@auctionpie.com