Internet Auction Fraud

Auction fraud is one of the fastest-growing crimes on the Internet. Although it can take many forms, the most common type of auction fraud involves a seller failing to send an item, or sending an item that is significantly different from what was promised in the auction listing.

Auction fraud occurs on eBay, Yahoo Auctions, and all other auction sites. You can find information on the latest forms of auction fraud at FlipShark.com.

The best protection you have against Internet auction fraud is your own common sense.

The following guidelines can help you to avoid auction fraud:

• Transfer money through an online escrow service (such as PayPal). Most auction sites maintain lists of these services.
• Check the seller's feedback at the auction site. Since feedback generally takes a few days, be wary of feedback dated immediately following a sale — it may be fake.
• Be careful of sellers outside the United States, because they are not bound by U.S. laws. If there is a problem with quality or delivery, you may have no one to complain to.
• Use a credit card. Credit card payment protects the buyer, because you can dispute the charges if the goods are misrepresented or never delivered. Cancel the card immediately if you suspect fraud.
• Never buy anything from a seller who asks for payment to be mailed to a P.O. box.

For more information, read the Federal Trade Commission's Internet Auction Guide.