It is possible to take part in online auctions safely. Read the following carefully to understand how.
1. Understand how the Internet auction works.
Many frauds use their victim’s ignorance to their advantage. Therefore, you should understand how the Internet auction actually works so that you know your obligations as a buyer and the seller’s obligations so that you are unlikely to be ripped off. Some of the things you should do are elaborated below.
2. Consider utilizing an escrow.
Escrow services act as a trusted third-party during the transaction. They manage the payment process from start to finish, therefore protecting both buyer and seller. Hence, you can be safe from frauds.
3. Do your homework.
Before you take part in an online auction, do the following:
- Make sure you are purchasing merchandise from a reputable source. Look up on the auction company or website to ensure that they are legitimate and reliable.
- Research on what procedures the auction website or company undertakes so that if problems occur you will know how much compensation you will get.
4. Confirm the seller's identity.
Fraudulent sellers often give out fake contact information, and conveniently 'disappear' after cheating their victims. Therefore:
- Try to obtain the physical address of the seller, rather than merely a post office box or a phone number.
- Call the seller to see if the number is correct and working. Similarly, send email to the seller to ensure that the given email is active.
- Consider not purchasing from sellers who will not provide you with proper contact information.
- If possible, review the seller's past auctions to learn whether he/she is reliable.
5. Be aware of fee stacking.
Fee stacking happens when a seller keeps adding hidden charges to the item he or she had sold to the buyer. Therefore, find out if shipping and delivery are included in the auction price or are additional costs so there are no unexpected costs.
6. When in doubt, always contact the authorities for help.
If you suspect that the seller is doing something wrong, do not hesitate to contact the auction site or your local authorities for clarification. It is better to be safe than sorry.
Similarly, if you suspect that the item you are buying from the seller was obtained by illegal means, report this to the concerned authorities immediately.
Reference
How to avoid online auction fraud?
http://www.usatoday.com/tech/columnist/2002/05/07/yaukey.htm
5 ways to avoid auction rip-offs
http://moneycentral.msn.com/content/Savinganddebt/Finddealsonline/P36485.asp
Avoid Internet Fraud, by Ina Steiner
http://www.auctionbytes.com/cab/abn/y01/m11/i08/s03
Tips for avoiding internet fraud from Deloitte & Touche
http://www.whitecollarcrime.co.za/warning/internet.htm