E-commerce Weblog

Things to take note to prevent e-auction fraud when a consumer participating in an e-auction.

Auction refers to market mechanism by which buyers make bids and sellers place offers. Competitive and dynamic nature determines the final price. Auctions can rapidly disposal of items and offer trading opportunities for both buyers and seller. The most popular type of auctions is an electronic auction (e-auctions) which means auctions conducted online.
I would like to share a list of tips you can use to prevent e-auction fraud when participating in an e-auction.

First, learn how the auction runs. Find what obligations you have as a buyer, and what obligations the seller has before you make a bid. Seller will not liable to help you if you do not follow proper prevention measures.
1. Observe how the auction functions.
Search the buyer and seller obligations before bidding. If there are no proper prevention measures, seller is not liable to help the buyer

2. Do not disclose personal data simply
Disclosing personal data easily such as credit card number, account number, or password cause many problems.

3. Feedback forum
It allows the buyer and seller to build up online trading reputations. For an example, eBay uses this method to reduce fraud. The users have the right to comment their experience with others. Also, the information and history can be acquired through the feedback forum.

4. Be aware of “Advanced-fee demand”
Before receiving goods or services, the buyer should be alert with the seller who requires the buyer to send checks or money orders immediately to a post office.

5. Escrow Service
It is an independent third party. It verifies the payment of the buyer and alerts the seller when everything checks out.
6. Grading service
It is used to determine the physical condition of an item. For an instance, trading cards are graded from A1 to F1.

7. Read the comment left by previous buyers
A reputable seller can be determined. Also, the seller identification can be verified.

8. Inspect the item
Make sure the delivered item is physically in good condition. Third parties will evaluate and identify an item through a variety of means such as "DNA tagged"

References:

1.http://www.crimcheck.com/background-check-news/whats-internet-auction-fraud-and-how-do-i-prevent-it

2.http://www.usatoday.com/tech/columnist/2002/05/07/yaukey.htm

3.http://www.idea.gov.uk/idk/core/page.do?pageId=939784