Auction Fraud C2R Portal
Over a million auction transactions take place each day. A small percentage of bidders on these auctions become victims of fraud.
The FTC Identifies a typical Auction scam scenario like this:
The Bait: Shop in a "virtual marketplace" that offers a huge selection of products at great deals.
The Catch: After sending their money, consumers say they've received an item that is less valuable than promised, or, worse yet, nothing at all.
The Safety Net: When bidding through an Internet auction, particularly for a valuable item, check out the seller and insist on paying with a credit card or using an escrow service.
The Catch: After sending their money, consumers say they've received an item that is less valuable than promised, or, worse yet, nothing at all.
The Safety Net: When bidding through an Internet auction, particularly for a valuable item, check out the seller and insist on paying with a credit card or using an escrow service.
The FBI breaks Auction Fraud into three Categories:
Click on category to find out more
-Overpayment Fraud
-Wire transfer schemes
-Second-chance schemes
Things to watch out for!
-If it is too good to be true, it probably is not legitimate.
-The seller just happens to be out of the country for any reason after you win the auction.
-The seller asks money to be sent to "another" person after the sale.
-Funds are to be wired via Western Union or the like.
-Winner sends you a check for more than the auction sales price, and then asks you to send the winner the excess amount.
-Credit card billing address is different from shipping address. Not totally uncommon, but beware that this might be a false credit card.
-Seller wants you to use an unfamilar "escrow service".
-Seller has multiple poor ratings or no rating.
Prevention Strategy
-Check Seller or buyer ratings.
-Get a phone number or confirm other contact details like a physical address that can somehow be verified.
-Check the fine print of the auction (see Judge Judy video below for a curious allegory).
-Always be suspicious when funds must be sent via wire (Western Union, MoneyGram). The buyer has little recourse if money is transferred in this manner.
-Use reputable money exchange programs such as PayPal and the like.
-Never deposit a check that was sent for MORE than the final auction price.
-Look for "bonded" sellers who have their business backgrounds and credit histories investigated by a third party.