| It seems that auction fraud is the new black in the land | | | | - Do not give your social security number or drivers |
| of cyber crime. According to its website, the Internet | | | | license number to the seller. No reputable auction |
| Crime Complaint Center (IC3) has recently received a | | | | house has any use for them. |
| large number of calls reporting fraud involving | | | | One issue that makes an online auction a prime spot |
| international automobile auctions online. This particular | | | | for fraudulent exchange is that users can easily be |
| fraud involves an online auction in which the "winner" | | | | mislead or become confused about the responsibility |
| pays via wired money for a vehicle that will | | | | of the site in question. Some people don't realize that a |
| supposedly be shipped from Europe. The money is | | | | site such as eBay does not sell the items up for |
| wired, and the buyer waits in vain for a vehicle, which, | | | | auction; what eBay does is provide a forum for sellers |
| predictably, never shows. Unfortunately, once the | | | | to hock their own goods. Most online auction sites will |
| money is gone, there is little that can be done in the | | | | not reimburse a buyer's losses, and emphasize the |
| way of recovering it. | | | | importance of using caution when engaging in online |
| The IC3, a partnership of the FBI and the National | | | | commerce.eBay's Trust and Safety policy states that |
| White Collar Crime Center, this year released its yearly | | | | the site has put in place a safety team dedicated to |
| complaints report, which stated that reports of internet | | | | keeping their "marketplace a safe, well-lit place for |
| fraud made up 62 percent of crime complaints | | | | people around the world to trade with one other." The |
| received, crowning it with the dubious title of most | | | | site features a number of protection methods in place |
| commonly reported cyber crime. Other top complaints | | | | to benefit users: |
| include undelivered merchandise or payment, credit and | | | | - Feedback - Users can rate each other, establishing |
| debit fraud, and check, investment, computer, and | | | | marketplace reputations and acting as watchdogs for |
| confidence fraud. | | | | dishonest or unfair auction practices (defective |
| According to IC3, buyers in the United States planning | | | | merchandise, late payment, inordinately long shipping |
| to purchase online a vehicle that is located outside of | | | | time, etc.) |
| the United States should exercise caution and | | | | - Buyer Protection - eBay is set up so that users can |
| thoroughly research any potential sellers or auction | | | | pay for their merchandise in a fashion that offers |
| houses for legitimacy. Buyers should be aware of the | | | | more security than wired cash. |
| risk of what are known as "second chance auctions," | | | | - Fraudulent Web Site Protection - eBay offers users |
| wherein a buyer who lost an "auction" is contacted | | | | a toolbar that alerts users in the event they stumble |
| and told that they may buy the item they bid on at a | | | | upon a fraudulent site. |
| discount rate, due to the original auction winner | | | | - Security Center Features - eBay offers tips on |
| defaulting on payment. Buyers should also beware of | | | | practicing good marketplace habits, as well as |
| any monetary transfers requested that don't involve | | | | information on reporting fraud or other online criminal |
| an established and trustworthy method, such as an | | | | activity. |
| escrow service. | | | | Other ways to protect oneself in the world of online |
| The IC3 recommends observing the guidelines below | | | | auctions include avoiding both buyers and sellers who |
| to avoid being duped into an online fraud scam: | | | | seem suspicious: |
| - Educate yourself. Research how the auction works, | | | | - If the seller claims to be located in the United States |
| what your obligations are as a buyer, and what the | | | | but wants the payment sent overseas or to someone |
| seller's obligations are before you bid. | | | | else, beware. Also, if the seller claims he suddenly had |
| - Research the seller, especially if the only information | | | | to leave the country for whatever reason, don't |
| you have is an e-mail address. If it is a business, check | | | | conduct business until he is back in the country. |
| the Better Business Bureau where the seller/business | | | | - If the seller requests cash payment or wire transfer, |
| is located. If you can't find any information, do not place | | | | do not send it. Using these services leaves virtually no |
| a bid. | | | | paper trail and no way to recover the money in the |
| - Research any feedback from past customers. | | | | event of fraud. |
| - Determine the method of payment and where the | | | | - Avoid dealing with sellers who claim to be authorized |
| seller is requesting it be sent. | | | | dealers or factory representatives in countries where |
| - Be aware that a problem with an international auction | | | | you know such positions don't exist. |
| transaction may be much more difficult to resolve | | | | - Do not trust buyers request the merchandise be |
| because of the difference in laws. | | | | shipped using methods that avoid customs or taxes. |
| - Find out the seller's policies on problems, warranties, | | | | - Sellers should be suspicious of any credit card |
| delivery times, exchanges, and defective merchandise. | | | | purchases if the address of the cardholder does not |
| - Avoid surprise charges by finding out if shipping and | | | | match the shipping address, and be sure to receive the |
| delivery are included in the auction price or are | | | | cardholder's authorization before shipping any products. |
| charged as separate costs. | | | | |