| When your customer and/or merchant are nothing but | | | | 3. Check fraud represented 4.9% of complaints. |
| a handle on an Internet website, the likelihood of falling | | | | 4. About 70% of the fraud victims were scammed |
| victim to deceit greatly increases. In an age of credit | | | | through websites and 30% of the victims were |
| card fraud and telephone scams it is imperative that | | | | scammed by emails. |
| sellers and buyers protect themselves. | | | | 5. The average loss for all Internet frauds was $1,500. |
| Internet Fraud | | | | Auction Fraud |
| The top ten Internet scams as listed by the National | | | | A seen above, auctions are the number one source of |
| Consumers League’s (NCL) Fraud Center, in 2006 | | | | fraud on the Internet. A great deal of fraudulent sellers |
| included: | | | | and buyers manipulate eBay auctions. Among these |
| 1. Online Auctions - Misrepresented or undelivered | | | | frauds are the receiving of payment and failing to send |
| goods. | | | | merchandise, the selling of stolen or counterfeit items, |
| 2. General Merchandise - Misrepresented or | | | | and buyers forging emails to sellers claiming that a |
| undelivered goods not purchased through auctions. | | | | payment has been made. Some perpetrators go as |
| 3. Fake Check Scams - Consumers using fake | | | | far as to set up fake eBay websites that request log |
| checks to pay for sold items, and asked to have the | | | | in information; allowing them to hack into an |
| money wired back. | | | | account.eBay’s feedback system is one method of |
| 4. Nigerian Money Offers - Deceptive promises of | | | | defense. By leaving feedback on a buyer or seller, you |
| large sums of money, if consumers agreed to pay the | | | | alert others of the level of honesty in their business |
| transfer fee. | | | | practices. However, this feedback system does have |
| 5. Lotteries - Asking winners to pay before claiming | | | | its faults. For instance, giving a ‘neutral’ rating |
| their non-existent prize. | | | | might cause a seller to retaliate by leaving a |
| 6. Advance Fee Loans - Request a fee from | | | | ‘negative’ rating. Therefore, some feel it is in the |
| consumers in exchange of promised personal loans. | | | | eBay user’s best interest to give feedback only |
| 7. Phishing - Emails pretending to represent a credible | | | | after the buyer/seller has already done so. |
| source, ask consumers for their personal information | | | | Be sure to look at the feedback comments for an |
| (e.g. credit card number). | | | | eBay seller before bidding. If a seller has a 100% |
| 8. Prizes/Sweepstakes - Request a payment from | | | | positive feedback history and has only purchased |
| consumers in order for them to claim their non-existent | | | | items that cost one cent this should raise a red flag. |
| prize. | | | | In addition to eBays’s feedback system, it is |
| 9. Internet Access Services - Misrepresentation of the | | | | recommended that eBay buyers utilize third party |
| cost of Internet access and other services, which are | | | | websites that educate buyers about possible stolen |
| often not provided. | | | | goods being sold on eBay, inform buyers of |
| 10. Investments - False promises of gains on | | | | trustworthy eBay sellers, using software that alerts |
| investments. | | | | users of a fake eBay log in menu, and using PayPal in |
| The Internet Crime Complaint Center (IC3), a joint | | | | order to make certain that payments are sent and/or |
| venture of the FBI and the National White Collar Crime | | | | received. |
| Center, in 2007 found: | | | | Every precaution should be made to ensure a safe |
| 1. Online auction fraud was the most reported type of | | | | selling or buying experience on eBay. If you are unsure |
| fraud and accounted for 44.9% of consumers’ | | | | about a user’s credibility, check their feedback and |
| complaints. | | | | utilize as many resources as you can to confirm the |
| 2. Non-delivered merchandise and/or payment made | | | | trustworthiness of the seller. |
| up 19.0% of complaints. | | | | |