Nowadays, using internet to do the online banking, shopping or any other bid activities has become more convenience for people. Therefore, E-auction has become popular through online where not face-to-face auction. Furthermore, the incident of E-auction fraud may arise. When comes to e-auction transactions, who can you trust? Since you do not know the people or products you're dealing with, conducting e-auction transactions over the Internet is risky.
An auction is a market mechanism by which buyers make bids and sellers place offers. Electronic auctions (e-auctions), auctions conducted online.
E-auction fraud may include:
E-auction fraud may include:
~ bid shielding: The practice of placing a low bid in an auction online and having a second person enter a bid that is high enough to get other bidders to drop out or not even bid. Then at the last second, the high bid is retracted and the low bid wins.
~ shilling: placing fake bids on auction items to artificially jack up the bidding price
~ shilling: placing fake bids on auction items to artificially jack up the bidding price
~ fake photos and misleading descriptions
~ failure to ship merchandise and make payments
~ loss and damage claims~ switch and return
~ high shipping costs and handling fees
In order for consumers in preventing E-auction fraud, there are few things that may want to take note on (these note provided is base on the effort done by eBay in order to reduce fraud) such as;
· User identity verification is a voluntary program encourages users to supply eBay with information for online verification to qualifies them for highest level of verification.
· Authentication service is to determine whether an item is genuine and described appropriately.
· Grading services is to determine physical condition of an item or the goods.· Feedback forum is provides for the users with ability to comment on their experiences with other individuals.
· Insurance policy is offers by eBay underwritten by Lloyd’s of London at no cost to eBay users.
· Escrow services are if items valued at more than $200, eBay recommends escrow services for free. It is a licensed and regulated company that collects, holds, and sends a buyer's money to a seller according to instructions agreed on by both the buyer and seller. Typically, once the buyer receives and approves the item from the seller within an agreed time frame, the escrow service then sends the payment to the seller.
· Appraisal services is use a variety of methods to appraise items.
~Assessment of authenticity and condition,
~Review of what comparable items have sold for in recent months.
· Verifications are a way of confirming the identity and evaluating the condition of an item.
From more information on step or ways in preventing E-auction fraud you can visit,
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