Nowadays, buyers and sellers alike benefit from the great opportunities that online auctions provide. However, the rapid growth of online commerce presents new opportunities and new challenges for both traditional retailers. According to the National Consumers League’s Internet Fraud Watch, auction fraud is the most common sort of online fraud.
Auction fraud occurs when an item won in an online auction never arrives or has been significantly misrepresented. Because of the liability policies for card-not-present transactions and because buyers cannot see the item, they may get a defective product, thus, the fraud rate in e-auctions is very high.
Here have some tips to take not to prevent e-auction fraud when a consumer participating in e –auction:
Auction fraud occurs when an item won in an online auction never arrives or has been significantly misrepresented. Because of the liability policies for card-not-present transactions and because buyers cannot see the item, they may get a defective product, thus, the fraud rate in e-auctions is very high.
Here have some tips to take not to prevent e-auction fraud when a consumer participating in e –auction:
1. You should understand how an online auction works before you bid on merchandise and should understand obligations as a buyer or seller.
2. Ensure you understand refund, return, and warranty policies, such as: does the auction site provide insurance that covers buyers up to a certain amount? How would the auction site handle a dispute between buyer and seller?
3. Review the seller's feedback if available on the auction site which provides users with the ability to comment on their experiences with other individuals.
4. Investigate the seller as much as possible. You should be cautious of sellers who provide only an email or post office box address. It is better that you call the seller to see whether the phone number is working, or send an email to see if the email address is active.
5.Before you bid, contact the seller with any questions you have, such as: find out what type of payment is required, when you can expect delivery, and if shipping and delivery are included in the price.
6. Protect yourself from identity theft by not giving out such personal information as your social security number, driver's license number, credit card numbers or bank account numbers, as sellers do not need this information.
Although e- auction provide many convenience to us however we should alert anytime when use the e-auction service to prevent we suffer the financial loss due to e-auction fraud.
Reference:
1. More on Electronic Auctions
1 comments:
Well done.. i have learn the methods to prevent e-auction fraud.. is very useful for people who participate in an e-auction.
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