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Online Auction Fraud


eBay sales may have grown 51% last year over the previous year, but general online complaints jumped by 66.6% over the previous year to some 207,000+ complaints in 2004. The Internet Crime Complaint Center (IC3), a partnership between the FBI and the National White Collar Crime Center (NW3C), stated in its yearly report that 71.2% of all complaints received pertained to auctions.

Online fraud is a growing problem on the internet and the auction segment is far from immune. The IC3 reports that most complaints consist of late or no shipment of products, items that don't match advertised condition and bogus payment or escrow services.

If you decide to offer "all items to be shipped within 24 hours", make sure you keep your word, and go to great lengths to honestly represent and describe the item in your auctions. Your bidders will appreciate your honesty and it will eventually show up in your feedback.

As consumer fears increase, there are a number of common sense ways to help protect you from fraud, as well as enhance your reputation as a trustworthy seller and set you apart from the crowd.

Watch Out for Bad Checks, Money Orders and Cashiers Checks Years ago I had a buyer who complained rather loudly when I didn't ship an item as soon as I received the check in the mail. In hind site it was a good decision to hold the shipment since the check ended up being fraudulent. Bad checks, money orders, and cashiers checks are rampant in ecommerce today. The simplest way to offset the danger of bad paper is not to ship the auction item until the check, money order or cashier check clears your bank for payment.

Overpayments

Never accept any overpayments for any item. One of the more popular scams today is for a buyer to send a cashiers check for an amount that is higher than the agreed upon final price. They then claim it was in error and ask the seller to kindly return the overage when the item is shipped. Off goes the item, the overage amount in good money, and the defrauded seller finds out too late the cashiers check was fake.

Use an Escrow Service for High Priced Items

The primary purpose of escrow services is to protect buyers and sellers from fraud. Basically what they do is to accept the money from the buyer and hold it until the buyer receives and approves the merchandise. Please note that fake escrow services are increasing on the internet. If a buyer contacts you after a sale and recommends an escrow service you are not familiar with BEWARE. At present eBay only recommends one escrow company: www.escrow.com. For information go to http://pages.eBay/help/confidence/payment-escrow.html

Records, Records, Records

Keeps a copy of every transaction detail from the original auction listing to the last email. You will need that kind of proof to validate your claims if you should find you need to file a complaint.

Protect Yourself by Being Educated

At the very least you need to be knowledgeable about your legal obligations as a seller and familiar with the fraud protections and policies for the auction sites and payment processing services you use. eBay and Paypal have extensive sections on their websites dedicated to fraud policies and protections. You should take the time to read through these or similar information pages for the sites and services you use on a regular basis and be very familiar with the material.

A few of the key recommendations from Paypal's Protection for Sellers section include:

Ship only to the address listed on the Transaction Details page

Use a shipping service with tracking

Check out the buyer's reputation

Accept payment from only one Paypal account per buyer

Limit credit card payments

Enhancing Your Safe Seller Image

Here are a few tips that will help improve your image as a safe seller for your bidders.

Identify Yourself - Make use of the about me pages to let your customers know who you are, how long you've been in business and how much their business means to you. Be honest.

Feedback Ratings - Auction buyers want to see 100% positive feedback.

Methods of Payment - Make it easy for your customers to buy but consider convenience, cost and security in choosing any payment method you offer.

Full Disclosure - Your auction listings should clearly state the condition of the item you're auctioning, your shipping/insurance and return policies.

Bonding programs - A number of bonding programs are available on the internet. One of the more popular is BuySafe (www.buysafe.com). In a bonding program the seller agrees to certain obligations such as shipping on time, representing the item correctly, and standing behind the transaction. In return the seller can display a seal on their auctions showing bidders they are honest sellers and providing transaction insurance in some cases up to $25,000.

Other programs you should be familiar with include:

IDVerify
SquareTrade
Trust-e

If You Become a Victim of Online Fraud

You need to know exactly what should be done in the event you are victimized. Make your plan now, before it happens. The most recommended steps to take if you are victimized are listed below but please keep in mind these are general recommendations and you should have you own plan based on your needs.

File a complaint with your auction site
File a complaint with the Federal Trade Commission
File a complaint with the IC3
File a complaint with the National Fraud Information Center
Contact your local and state law enforcement agencies
Contact the local and state law enforcement agencies in the perpetrator's home area
File a complaint with the shipping company you used
It the perpetrator is a business and a member of the Better Business Bureau you should also file a complaint there.

Further reading

Paypal Seller Protection Policy (go to your Paypal account)

FTC recommendations http://www.ftc.gov/bcp/conline/pubs/online/auctions.htm

To read the entire 2004 IC3 Internet Fraud Report http://www1.ifccfbi.gov/strategy/2004_IC3Report.pdf

More Important Fraud Links

Find Your Local Police http://www.usacops.com
FBI Internet Fraud Unit http://www1.ifccfbi.gov/index.com
FTC Internet Fraud Unit https://m.ftc.gov
USPS Mail Fraud http://www.usps.com/postalinstpectors/fraud/

© Copyright 2005 Steven Woodward - All Rights Reserved

Steven Woodward is the owner, editor and publisher of the Auction Sellers Network (ASN); a web site for individuals and companies who are serious about utilizing the online auction marketplace for their business. In addition to topical articles, ASN provides an extensive resource center, news feeds, member forums and classified ads. For more information or to become a member please visit http://www.AuctionSellersNetwork.com

No permission is needed to reproduce an unedited copy of this article as long the About the Author tag is left intact and included. We do request that we be informed where it is posted and reciprocal links will be considered.


TODAYS NEWS BY OFFICEJAX FREE ADVERTISING AND AD EXCHANGE SOLUTIONSMORE RESOURCES updated Tue. March / 19 / 2024

How Julien’s Auctions Leads the Booming Market in Celebrity Memorabilia - The New Yorker
How Julien’s Auctions Leads the Booming Market in Celebrity Memorabilia  The New Yorker

‘Sword of Truth’ Author Terry Goodkind’s Secluded Nevada Home and Writing Studio Head to Auction - Mansion Global
‘Sword of Truth’ Author Terry Goodkind’s Secluded Nevada Home and Writing Studio Head to Auction  Mansion Global

Kobe Bryant's 2000 NBA championship ring, originally gifted to his father, is for sale at auction - CBS Sports
Kobe Bryant's 2000 NBA championship ring, originally gifted to his father, is for sale at auction  CBS Sports

LA Lakers 2000 NBA championship ring Kobe Bryant gifted to his dad up for sale at 'Elite Sports Auction' - KABC-TV
LA Lakers 2000 NBA championship ring Kobe Bryant gifted to his dad up for sale at 'Elite Sports Auction'  KABC-TV

Kobe Bryant's Parents Face Backlash After Putting Championship Ring On The Auction Block - Yahoo Entertainment
Kobe Bryant's Parents Face Backlash After Putting Championship Ring On The Auction Block  Yahoo Entertainment

Delaware surplus auctions in March include boats, vehicles and tools - The News Journal
Delaware surplus auctions in March include boats, vehicles and tools  The News Journal

'Wizard of Oz' ruby slippers stolen by retired mobster to hit auction after recovery - Fox Business
'Wizard of Oz' ruby slippers stolen by retired mobster to hit auction after recovery  Fox Business

Monaco Car Auctions returns with L'Astarossa - the ultimate stable of prancing horses - Classic Driver
Monaco Car Auctions returns with L'Astarossa - the ultimate stable of prancing horses  Classic Driver

Apartment complex goes on auction block in Kinloch, Missouri - KSDK.com
Apartment complex goes on auction block in Kinloch, Missouri  KSDK.com

Jobs and Musk smash auction records ... and the auction isn't finished yet - New Atlas
Jobs and Musk smash auction records ... and the auction isn't finished yet  New Atlas

A Pinarello Dogma gifted to the pope by Egan Bernal is up for auction - Cyclingnews
A Pinarello Dogma gifted to the pope by Egan Bernal is up for auction  Cyclingnews

Another Cybertruck is at auction, bids past $150K with four days to go - Autoblog
Another Cybertruck is at auction, bids past $150K with four days to go  Autoblog

Kobe Bryant's LA Lakers NBA championship ring is up for auction - NBC Southern California
Kobe Bryant's LA Lakers NBA championship ring is up for auction  NBC Southern California

Weekly online auctions where you can buy and sell - ABC4.com
Weekly online auctions where you can buy and sell  ABC4.com

Tired of brackets? How to play NCAA Tournament survivor, Calcutta auctions and upset drafts - The Athletic
Tired of brackets? How to play NCAA Tournament survivor, Calcutta auctions and upset drafts  The Athletic

Norway's inaugural offshore wind auction continues Tuesday - Reuters
Norway's inaugural offshore wind auction continues Tuesday  Reuters

ACV auctions director Eileen Kamerick sells over $216k in company stock By Investing.com - Investing.com
ACV auctions director Eileen Kamerick sells over $216k in company stock By Investing.com  Investing.com

Arizona Game and Fish Votes to Ban Big Game Auction Tags - GearJunkie
Arizona Game and Fish Votes to Ban Big Game Auction Tags  GearJunkie

Planet Hollywood auction in Dallas to sell wood panel from "Titanic" - The Dallas Morning News
Planet Hollywood auction in Dallas to sell wood panel from "Titanic"  The Dallas Morning News

Judy Garland’s Recovered Ruby Slippers From ‘Wizard of Oz’ Going Up for Auction - Hollywood Reporter
Judy Garland’s Recovered Ruby Slippers From ‘Wizard of Oz’ Going Up for Auction  Hollywood Reporter

Mecum Auction sales top $54 million mark in Glendale | Glendale Independent - Daily Independent
Mecum Auction sales top $54 million mark in Glendale | Glendale Independent  Daily Independent

Owners of Shiba Inu Behind Dogwifhat Meme Auctions NFT on Ethereum - Yahoo Finance
Owners of Shiba Inu Behind Dogwifhat Meme Auctions NFT on Ethereum  Yahoo Finance

Ancient Coins Featured in Robinson Auction - Numismatic News
Ancient Coins Featured in Robinson Auction  Numismatic News

2024 Houston Rodeo sets new records for attendance, auction sales | khou.com - KHOU.com
2024 Houston Rodeo sets new records for attendance, auction sales | khou.com  KHOU.com

Return of "The Russell" highlighted by $2.25 million sale - Great Falls Tribune
Return of "The Russell" highlighted by $2.25 million sale  Great Falls Tribune

Downtown Hot Springs buildings head for auction block - talkbusiness.net
Downtown Hot Springs buildings head for auction block  talkbusiness.net

2024 fantasy baseball draft sheet: Downloadable auction values and stats for 650 players - The Athletic
2024 fantasy baseball draft sheet: Downloadable auction values and stats for 650 players  The Athletic

Antiques Roadshow alum Reyne Hirsch buys Dallas Auction Gallery - The Dallas Morning News
Antiques Roadshow alum Reyne Hirsch buys Dallas Auction Gallery  The Dallas Morning News

The Extensive Collection: Andrew Jones Auctions honors Fritz and Lucy Jewett's wide-ranging pieces - LA Downtown News Online
The Extensive Collection: Andrew Jones Auctions honors Fritz and Lucy Jewett's wide-ranging pieces  LA Downtown News Online

Roadmap for Consigning Property At Auction - Wealth Management
Roadmap for Consigning Property At Auction  Wealth Management

Independent Director Of ACV Auctions Sold 100% Of Their Shares - Simply Wall St
Independent Director Of ACV Auctions Sold 100% Of Their Shares  Simply Wall St

Sword of Truth’ Author Terry Goodkind’s Secluded Nevada Home and Writing Studio Head to Auction - Barron's
Sword of Truth’ Author Terry Goodkind’s Secluded Nevada Home and Writing Studio Head to Auction  Barron's

Kobe Bryant’s 2000 Championship Ring up for Auction - Sportico
Kobe Bryant’s 2000 Championship Ring up for Auction  Sportico

Sullivan schools to try once again to auction surplus properties - Bristol Herald Courier
Sullivan schools to try once again to auction surplus properties  Bristol Herald Courier

Norway Launches Its First Offshore Wind Auction | OilPrice.com - OilPrice.com
Norway Launches Its First Offshore Wind Auction | OilPrice.com  OilPrice.com

Over $48000 Raised at 2024 Dairy's Foundation Auction - WTAQ
Over $48000 Raised at 2024 Dairy's Foundation Auction  WTAQ

LA Lakers 2000 NBA championship ring Kobe Bryant gifted to his dad up for sale at 'Elite Sports Auction' - WLS-TV
LA Lakers 2000 NBA championship ring Kobe Bryant gifted to his dad up for sale at 'Elite Sports Auction'  WLS-TV

6X6 AUCTION | Calendar | decaturdailydemocrat.com - Decatur Daily Democrat
6X6 AUCTION | Calendar | decaturdailydemocrat.com  Decatur Daily Democrat

What should I know about … the DREAMS Auction? - Wahpeton Daily News
What should I know about … the DREAMS Auction?  Wahpeton Daily News

Neil Gaiman Auctions Memorabilia in Irving, Raises $1M for Nonprofits - Dallas Observer
Neil Gaiman Auctions Memorabilia in Irving, Raises $1M for Nonprofits  Dallas Observer

'Streetworkers' Leads Eldred's Women In The Arts Auction - Antiques and the Arts Online
'Streetworkers' Leads Eldred's Women In The Arts Auction  Antiques and the Arts Online

6 Massachusetts students face charges for allegedly holding mock slave auctions on Snapchat - CBS Boston
6 Massachusetts students face charges for allegedly holding mock slave auctions on Snapchat  CBS Boston

Auction Block: Can You Really Sell A Small Law Firm? - Above the Law
Auction Block: Can You Really Sell A Small Law Firm?  Above the Law

PawSox murals from McCoy Stadium sold at auction - WPRI.com
PawSox murals from McCoy Stadium sold at auction  WPRI.com

Clash During Auctions, Man Killed in Nandyal - Deccan Chronicle
Clash During Auctions, Man Killed in Nandyal  Deccan Chronicle

Houston Livestock Show and Rodeo's 2024 junior auctions end with $1M steer sale, barrow record set - The Business Journals
Houston Livestock Show and Rodeo's 2024 junior auctions end with $1M steer sale, barrow record set  The Business Journals

Neil Gaiman Heritage Auction Raises Over 1 Million - ICv2
Neil Gaiman Heritage Auction Raises Over 1 Million  ICv2

Japan's 19th solar auction concludes with average final price of $0.034/kWh - pv magazine International
Japan's 19th solar auction concludes with average final price of $0.034/kWh  pv magazine International

Focus on Women | Fine Books & Collections - Fine Books & Collections Magazine
Focus on Women | Fine Books & Collections  Fine Books & Collections Magazine

Indiana Waterways Paintings at Auction May 4; New Project Set for 2026 - Muncie Journal
Indiana Waterways Paintings at Auction May 4; New Project Set for 2026  Muncie Journal

Unitarian Universalists of Southern Delaware online auction fundraiser - Bay to Bay News
Unitarian Universalists of Southern Delaware online auction fundraiser  Bay to Bay News

The Pope's Pinarello Dogma F12 is up for auction - Global Cycling Network
The Pope's Pinarello Dogma F12 is up for auction  Global Cycling Network

Quarter auction fundraiser set at MVVM - Miami Valley Today
Quarter auction fundraiser set at MVVM  Miami Valley Today

Mass. investigators pursue charges against six 8th graders who allegedly created an online mock slave auction - WBUR News
Mass. investigators pursue charges against six 8th graders who allegedly created an online mock slave auction  WBUR News

Greene County Ducks Unlimited Banquet and Auction is Saturday - Raccoon Valley Radio
Greene County Ducks Unlimited Banquet and Auction is Saturday  Raccoon Valley Radio

'No Sales' Return to Farmland Auction Market, But Local Conditions Can Still Drive Strong Sales - DTN The Progressive Farmer
'No Sales' Return to Farmland Auction Market, But Local Conditions Can Still Drive Strong Sales  DTN The Progressive Farmer

Goodwill auctions 14-karat gold Lego piece for over $18,000 - UPI News
Goodwill auctions 14-karat gold Lego piece for over $18,000  UPI News

2024 March Madness Calcutta Auction Pool Strategy, Tips & Picks: Teams to Buy & Sell in the NCAA Tournament - The Action Network
2024 March Madness Calcutta Auction Pool Strategy, Tips & Picks: Teams to Buy & Sell in the NCAA Tournament  The Action Network

French Royal Menus, Darwin Presentation Copy, Christina Rossetti Letters: Auction Preview - Fine Books & Collections Magazine
French Royal Menus, Darwin Presentation Copy, Christina Rossetti Letters: Auction Preview  Fine Books & Collections Magazine

Benefit Auction Draws Hundreds | News, Sports, Jobs - The Inter-Mountain
Benefit Auction Draws Hundreds | News, Sports, Jobs  The Inter-Mountain

Kobe Bryant’s Parents Face Backlash After Putting Championship Ring On The Auction Block - Vibe
Kobe Bryant’s Parents Face Backlash After Putting Championship Ring On The Auction Block  Vibe

Roby Dwi Antono’s Wide-Eyed Characters Have Soared at Auctions. But Will Speculation Sink His Market? - artnet News
Roby Dwi Antono’s Wide-Eyed Characters Have Soared at Auctions. But Will Speculation Sink His Market?  artnet News

6 Students Charged For Racist Online Bullying, Mock Slave Auction - Chicago Defender
6 Students Charged For Racist Online Bullying, Mock Slave Auction  Chicago Defender

A Closer Look at Art Auction Houses - Wealth Management
A Closer Look at Art Auction Houses  Wealth Management

Kobe Bryant Had a 2000 NBA Championship Ring Made for His Father. Now It Could Be Yours. - Robb Report
Kobe Bryant Had a 2000 NBA Championship Ring Made for His Father. Now It Could Be Yours.  Robb Report

6 youths to be charged in Southwick racial bullying incident involving ‘mock slave auction' - NBC Boston
6 youths to be charged in Southwick racial bullying incident involving ‘mock slave auction'  NBC Boston

Vietnam 5G Spectrum Auction: Telecom Companies Bid for Licenses - Vietnam Briefing
Vietnam 5G Spectrum Auction: Telecom Companies Bid for Licenses  Vietnam Briefing

Antiques Roadshow alum buys Dallas Auction Gallery with bid on new generation - MSN
Antiques Roadshow alum buys Dallas Auction Gallery with bid on new generation  MSN

Mayor Parker is now working with Sheriff Bilal to resume auctions of tax-delinquent properties - The Philadelphia Inquirer
Mayor Parker is now working with Sheriff Bilal to resume auctions of tax-delinquent properties  The Philadelphia Inquirer

Furry Friends hosts ‘Meow or Never’ auction fundraiser - The Reflector
Furry Friends hosts ‘Meow or Never’ auction fundraiser  The Reflector

Rockmill Brewery Headed to Auction; Brioso Barista Honored for Latte Art - Columbus Monthly
Rockmill Brewery Headed to Auction; Brioso Barista Honored for Latte Art  Columbus Monthly

6 Massachusetts teens charged in racial bullying incident with mock slave auction on Snapchat - NBC News
6 Massachusetts teens charged in racial bullying incident with mock slave auction on Snapchat  NBC News

Memecoin Dogwifhat Photo Sells for $4.3M in NFT Auction - DailyCoin
Memecoin Dogwifhat Photo Sells for $4.3M in NFT Auction  DailyCoin

Washington State’s emissions allowance program held its first auctions in 2023 - U.S. Energy Information Administration - EIA
Washington State’s emissions allowance program held its first auctions in 2023 - U.S. Energy Information Administration  EIA

Pattie Boyd, often in the shadow of her famous husbands, has put a trove of mementos up for auction - PBS NewsHour
Pattie Boyd, often in the shadow of her famous husbands, has put a trove of mementos up for auction  PBS NewsHour

Canada joins German hydrogen import auction scheme H2Global, but funding details not yet disclosed - Hydrogen Insight
Canada joins German hydrogen import auction scheme H2Global, but funding details not yet disclosed  Hydrogen Insight

Original Apple iPhone 4GB from 2007 auctions for huge price - Quartz
Original Apple iPhone 4GB from 2007 auctions for huge price  Quartz

Rockford IceHogs hold live jersey auction benefitting community fund - WIFR
Rockford IceHogs hold live jersey auction benefitting community fund  WIFR

The rarest US stamp is going up for auction. It’s expected to sell for millions - CNN
The rarest US stamp is going up for auction. It’s expected to sell for millions  CNN

Albemarle Plans to Auction Lithium With Aim of 'Fair' Price - Yahoo Finance
Albemarle Plans to Auction Lithium With Aim of 'Fair' Price  Yahoo Finance

PrecisionHawk Bankruptcy auction – sUAS News – The Business of Drones - sUAS News
PrecisionHawk Bankruptcy auction – sUAS News – The Business of Drones  sUAS News

China to auction up to 226,000 tonnes of soybeans on March 19: NGTC - AgriCensus
China to auction up to 226,000 tonnes of soybeans on March 19: NGTC  AgriCensus

Elizabethtown to hold sealed bid auction for former borough garage - LNP | LancasterOnline
Elizabethtown to hold sealed bid auction for former borough garage  LNP | LancasterOnline

Free Arts NYC: Silent Benefit Auction 2024 - Artsy
Free Arts NYC: Silent Benefit Auction 2024  Artsy

San Diego to auction off nearly 400 defaulted properties - CBS News 8
San Diego to auction off nearly 400 defaulted properties  CBS News 8

Art auction in Cape Girardeau - KFVS
Art auction in Cape Girardeau  KFVS

Neil Gaiman on the collectibles he's auctioning in Dallas - WFAA.com
Neil Gaiman on the collectibles he's auctioning in Dallas  WFAA.com

The Brooklyn Museum Is Selling Off Four Period Rooms and a Trove of Antique Furnishings - artnet News
The Brooklyn Museum Is Selling Off Four Period Rooms and a Trove of Antique Furnishings  artnet News

Grand champion steer ties for $1 million record at rodeo auction - Houston Chronicle
Grand champion steer ties for $1 million record at rodeo auction  Houston Chronicle

Spring for Amish people in Pennsylvania means 'mud sales,' from pitchforks to pies - The Associated Press
Spring for Amish people in Pennsylvania means 'mud sales,' from pitchforks to pies  The Associated Press

'Wizard of Oz' ruby slippers stolen from Minnesota museum returned to owner, will go on international tour and be ... - KSTP
'Wizard of Oz' ruby slippers stolen from Minnesota museum returned to owner, will go on international tour and be ...  KSTP

Bike gifted to the Pope by Egan Bernal goes up for auction - CyclingWeekly
Bike gifted to the Pope by Egan Bernal goes up for auction  CyclingWeekly

Exclusive: Weak bids in Citgo auction spurs Venezuela to pitch alternative pay plan - Reuters
Exclusive: Weak bids in Citgo auction spurs Venezuela to pitch alternative pay plan  Reuters

Iconic Photo of Dogwifhat Meme Coin Nets $4.3M in NFT Auction - Coinspeaker
Iconic Photo of Dogwifhat Meme Coin Nets $4.3M in NFT Auction  Coinspeaker

‘Vile’: 6 Massachusetts eighth graders charged for setting up ‘mock slave auction’ on Snapchat - Boston 25 News
‘Vile’: 6 Massachusetts eighth graders charged for setting up ‘mock slave auction’ on Snapchat  Boston 25 News

Rockford Icehogs hold live jersey auction benefitting their community fund - WIFR
Rockford Icehogs hold live jersey auction benefitting their community fund  WIFR

Kobe Bryant Championship Ring Hits Auction Block, Fans Call His Parents "Disgraceful" - HotNewHipHop
Kobe Bryant Championship Ring Hits Auction Block, Fans Call His Parents "Disgraceful"  HotNewHipHop

Elvis Presley's Cadillac, the Batmobile and the most expensive car sold at 2024 Mecum auction - The Arizona Republic
Elvis Presley's Cadillac, the Batmobile and the most expensive car sold at 2024 Mecum auction  The Arizona Republic

Neil Gaiman's Dallas auction of art and collectibles raises $1M - WFAA.com
Neil Gaiman's Dallas auction of art and collectibles raises $1M  WFAA.com

DA charges 6 Southwick 8th graders for conducting online ‘slave auction’ - MassLive.com
DA charges 6 Southwick 8th graders for conducting online ‘slave auction’  MassLive.com

Stolen 'Wizard of Oz' Ruby Slippers Set for Tour, Auction - Newsmax
Stolen 'Wizard of Oz' Ruby Slippers Set for Tour, Auction  Newsmax

Auction vs. Raffle Tags: Should States Stop Selling Big-Game Tags to the Highest Bidder? - Outdoor Life
Auction vs. Raffle Tags: Should States Stop Selling Big-Game Tags to the Highest Bidder?  Outdoor Life

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