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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 Thu. March / 28 / 2024

Titanic prop that saved Rose and sparked debate fetches $700k at auction - NPR
  1. Titanic prop that saved Rose and sparked debate fetches $700k at auction  NPR
  2. This controversial ‘Titanic’ prop sold for more than $700,000 at a memorabilia auction  CNN
  3. The ‘Titanic’ Door That Could’ve Saved Jack Just Fetched $718,750 at Auction  Robb Report

Fashion Can Go for Eye-Popping Prices at Auction. Who's Buying It? - The Business of Fashion
Fashion Can Go for Eye-Popping Prices at Auction. Who's Buying It?  The Business of Fashion

Local Players Dominate Brazil $3.6 Billion-Power Line Auction - Bloomberg
Local Players Dominate Brazil $3.6 Billion-Power Line Auction  Bloomberg

Karl Lagerfeld’s final residence sells for $10.81M at auction - New York Post
Karl Lagerfeld’s final residence sells for $10.81M at auction  New York Post

Crypt near Marilyn Monroe and Hugh Hefner could fetch $400,000 at auction - CNN
Crypt near Marilyn Monroe and Hugh Hefner could fetch $400,000 at auction  CNN

Crypt near Marilyn Monroe, Hugh Hefner to be auctioned off for $400,000 - USA TODAY
Crypt near Marilyn Monroe, Hugh Hefner to be auctioned off for $400,000  USA TODAY

A crypt near these two famous stars could go for $400000 at auction - PennLive
A crypt near these two famous stars could go for $400000 at auction  PennLive

Treasury Auctions Attract Better Demand. This Is What Has Changed. - Barron's
Treasury Auctions Attract Better Demand. This Is What Has Changed.  Barron's

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NBA Star Ben Simmons' $17.5 Million Los Angeles Mansion Heads To Auction  Forbes

NFL Christmas Day Games to Come Up for Auction - Front Office Sports
NFL Christmas Day Games to Come Up for Auction  Front Office Sports

Karl Lagerfeld’s Paris Apartment Sold at Auction for $10.8 Million - The New York Times
Karl Lagerfeld’s Paris Apartment Sold at Auction for $10.8 Million  The New York Times

New England Offshore Wind Auction Attracts Four Bidders | Offshore Wind - Offshore WIND
New England Offshore Wind Auction Attracts Four Bidders | Offshore Wind  Offshore WIND

Meissner's Auction House petroliana auction draws collectors - Times Union
Meissner's Auction House petroliana auction draws collectors  Times Union

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This controversial "Titanic" prop has spawned decades of debate — and it just sold for $700,000  CBS News

Elite Auctions offers 6.7-acre property Summit at Silverleaf - Daily Independent
Elite Auctions offers 6.7-acre property Summit at Silverleaf  Daily Independent

ACV Auctions supporting women leadership - Buffalo News
ACV Auctions supporting women leadership  Buffalo News

Men's Volleyball “Excite” Jersey Auction - University of Hawai'i at Manoa Athletics - University of Hawaii Athletics
Men's Volleyball “Excite” Jersey Auction - University of Hawai'i at Manoa Athletics  University of Hawaii Athletics

The Door From ‘Titanic,’ Too Small to Fit Two People, Sells Big at Auction - artnet News
The Door From ‘Titanic,’ Too Small to Fit Two People, Sells Big at Auction  artnet News

Auction notes: Awards from GM Financial & anniversary at America's Auto Auction Charleston - Auto Remarketing
Auction notes: Awards from GM Financial & anniversary at America's Auto Auction Charleston  Auto Remarketing

'Titanic' Door Prop That Saved Rose (Sorry, Jack) Sells for $718750 - The New York Times
'Titanic' Door Prop That Saved Rose (Sorry, Jack) Sells for $718750  The New York Times

Ponte Vedra Beach home sells for over $7.5 million in auction - ActionNewsJax.com
Ponte Vedra Beach home sells for over $7.5 million in auction  ActionNewsJax.com

Tomb near Marilyn Monroe, Hugh Hefner up at auction - Washington Times
Tomb near Marilyn Monroe, Hugh Hefner up at auction  Washington Times

Infamous 'Titanic' door sells for staggering €663000 at auction - Euronews
Infamous 'Titanic' door sells for staggering €663000 at auction  Euronews

Superman’s Debut Issue Could Set a Comic Book Record at Auction - Barron's
Superman’s Debut Issue Could Set a Comic Book Record at Auction  Barron's

Controversial 'Titanic' Prop Door Sells For $700K At Auction - The Daily Wire
Controversial 'Titanic' Prop Door Sells For $700K At Auction  The Daily Wire

Auction brings more than $7.5 million for Ponte Vedra Beach home | Jax Daily Record - Jacksonville Daily Record
Auction brings more than $7.5 million for Ponte Vedra Beach home | Jax Daily Record  Jacksonville Daily Record

Iconic 'Titanic' Door Just Sold for $718,750 at Auction - My Modern Met
Iconic 'Titanic' Door Just Sold for $718,750 at Auction  My Modern Met

Sotheby’s to Sell Painting by Andy Warhol and Jean-Michel Basquiat - Observer
Sotheby’s to Sell Painting by Andy Warhol and Jean-Michel Basquiat  Observer

Infamous 'Titanic' Wood Panel Fetches Thousands at Auction - Entrepreneur
Infamous 'Titanic' Wood Panel Fetches Thousands at Auction  Entrepreneur

The Now Evening Auction at Sothebys Hong Kong on artnet - Artnet
The Now Evening Auction at Sothebys Hong Kong on artnet  Artnet

‘Titanic’ Door that Saved Rose (But Not Jack) Fetches Six Figures at Auction - ARTnews
‘Titanic’ Door that Saved Rose (But Not Jack) Fetches Six Figures at Auction  ARTnews

Young auctioneer continues family legacy – The Daily Texan - The Daily Texan
Young auctioneer continues family legacy – The Daily Texan  The Daily Texan

Tilda Swinton Bedtime Story Read and Josh O’Connor Porridge-Making Lesson Among Auction Lots Raising Money for Gaza - Variety
Tilda Swinton Bedtime Story Read and Josh O’Connor Porridge-Making Lesson Among Auction Lots Raising Money for Gaza  Variety

NC auctions off abandoned safe deposit boxes - WFMYNews2.com
NC auctions off abandoned safe deposit boxes  WFMYNews2.com

‘Titanic’ driftwood ‘door’ that saved Rose sells at auction for $700K - The Washington Post
‘Titanic’ driftwood ‘door’ that saved Rose sells at auction for $700K  The Washington Post

Charlie Russell's The Broken Rope highlights Scottsdale Art Auction | Scottsdale Independent - Daily Independent
Charlie Russell's The Broken Rope highlights Scottsdale Art Auction | Scottsdale Independent  Daily Independent

1981 BMW M1 Could Fetch $550,000 at Auction - BMWBLOG
1981 BMW M1 Could Fetch $550,000 at Auction  BMWBLOG

More Outperformance as Treasuries Fret Over Auctions - Mortgage News Daily
More Outperformance as Treasuries Fret Over Auctions  Mortgage News Daily

Iconic 'Titanic' door prop that saved Kate Winslet sells at auction for over $700K - The National Desk
Iconic 'Titanic' door prop that saved Kate Winslet sells at auction for over $700K  The National Desk

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Diamonds Smash Estimates at Sotheby's Paris Auction  Rapaport

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BTG fund wins Brazil power transmission auction's largest project  Nasdaq

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Sotheby's Doubles Down on Athletic Collectibles With 'Sports Week' Auctions  Investopedia

Citigroup Inc. Has $256000 Stock Position in ACV Auctions Inc. (NASDAQ:ACVA) - Defense World
Citigroup Inc. Has $256000 Stock Position in ACV Auctions Inc. (NASDAQ:ACVA)  Defense World

Online auction of NERS vehicles, equipment nets $127,000 - Times Reporter
Online auction of NERS vehicles, equipment nets $127,000  Times Reporter

Props from ‘Titanic’ and ‘Indiana Jones’ Earn Six Figures at Auction $525,000 - Barron's
Props from ‘Titanic’ and ‘Indiana Jones’ Earn Six Figures at Auction $525,000  Barron's

Unclaimed property auction scheduled for March 27 - CBS Pittsburgh
Unclaimed property auction scheduled for March 27  CBS Pittsburgh

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TMCS purse auction raises funds for Lunch On Us program  Miami Valley Today

‘Never let go': Controversial ‘Titanic' movie prop sells for more than $700,000 at auction - NBC DFW
‘Never let go': Controversial ‘Titanic' movie prop sells for more than $700,000 at auction  NBC DFW

Winning Offshore Wind Auctions in a Changing Market - BCG
Winning Offshore Wind Auctions in a Changing Market  BCG

Lady Gaga and Amy Winehouse's letters to Tony Bennett heading to auction - NME
Lady Gaga and Amy Winehouse's letters to Tony Bennett heading to auction  NME

Auction Pick of the Week: 1956 Continental Mark II - Hagerty Media
Auction Pick of the Week: 1956 Continental Mark II  Hagerty Media

Libby's Property in Paterson Set for Auction | Paterson, NJ News TAPinto - TAPinto.net
Libby's Property in Paterson Set for Auction | Paterson, NJ News TAPinto  TAPinto.net

Titanic 'door' prop that kept Rose alive sells for $718,750 - BBC.com
Titanic 'door' prop that kept Rose alive sells for $718,750  BBC.com

One of Michael Jackson's iconic 'Thriller' jackets is up for auction - NME
One of Michael Jackson's iconic 'Thriller' jackets is up for auction  NME

Letters from five former presidents to Tony Bennett are going up for auction - The Hill
Letters from five former presidents to Tony Bennett are going up for auction  The Hill

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Large Collection of St. Louis Neon Signs and Memorabilia to be Sold at Auction  nextstl.com

Controversial ‘Titanic’ prop sells big at auction - KTLA Los Angeles
Controversial ‘Titanic’ prop sells big at auction  KTLA Los Angeles

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Lady Gaga, Amy Winehouse, Martin Luther King Jr.’s Letters to Tony Bennett Being Offered at Auction  Variety

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JM Wood Holds Spring 2024 Auction in Montgomery, Alabama : CEG  Construction Equipment Guide

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Chile launches first transmission auction of 2024  BNamericas English

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Pickens Auctions Annual Spring 24 Equipment Sale at Payne County Expo Center  Visit Stillwater, Oklahoma

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

Refiner Citgo set to open data room for bidders tied to court auction - Reuters
Refiner Citgo set to open data room for bidders tied to court auction  Reuters

'Titanic' floating door prop that saved Rose — but sadly not Jack — auctioned off for startling amount - New York Post
'Titanic' floating door prop that saved Rose — but sadly not Jack — auctioned off for startling amount  New York Post

Treasury Auction Relief Rally and Month-End Support - Mortgage News Daily
Treasury Auction Relief Rally and Month-End Support  Mortgage News Daily

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Auction of Adventure Bound boats gets delay, big minimum bid increase due to liens  Juneau Empire

Infamous 'Titanic' floating door sells for more than $700000 in Texas - Chron
Infamous 'Titanic' floating door sells for more than $700000 in Texas  Chron

Behind the scenes of Pennsylvania’s Treasury vault auction - ABC27
Behind the scenes of Pennsylvania’s Treasury vault auction  ABC27

Disney concept art, audio-animatronics available for bidding during upcoming auction - KTLA Los Angeles
Disney concept art, audio-animatronics available for bidding during upcoming auction  KTLA Los Angeles

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

Wood panel from Titanic fetches more than $700k at Dallas auction - The Dallas Morning News
Wood panel from Titanic fetches more than $700k at Dallas auction  The Dallas Morning News

Mixed Performance. Data Hurt. Auction Helped. Little Changed - Mortgage News Daily
Mixed Performance. Data Hurt. Auction Helped. Little Changed  Mortgage News Daily

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Sotheby's To Hold Rough Diamonds Watch Sale In April  HODINKEE

'Titanic' door sells for over $700k at auction - Entertainment Weekly News
'Titanic' door sells for over $700k at auction  Entertainment Weekly News

Forrest Gump Nike Cortez Auction $57,000 - Complex
Forrest Gump Nike Cortez Auction $57,000  Complex

Tony Bennett Auction To Feature Cartier, Rolex Watches - HODINKEE
Tony Bennett Auction To Feature Cartier, Rolex Watches  HODINKEE

CBI auctions +$254 million in forex on Thursday - Shafaq News - Shafaq News
CBI auctions +$254 million in forex on Thursday - Shafaq News  Shafaq News

Dorothy's Recovered 'Wizard of Oz' Ruby Slippers Head to the Auction Block - Observer
Dorothy's Recovered 'Wizard of Oz' Ruby Slippers Head to the Auction Block  Observer

The First-Ever Lotus F1 Car, Driven by Graham Hill, Is Hoping to Get $420K at Auction - autoevolution
The First-Ever Lotus F1 Car, Driven by Graham Hill, Is Hoping to Get $420K at Auction  autoevolution

Tobey Maguire's Black Symbiote Suit From 'Spider-Man 3' Is Up for Auction - HYPEBEAST
Tobey Maguire's Black Symbiote Suit From 'Spider-Man 3' Is Up for Auction  HYPEBEAST

SOLD! 230-acre Iowa century farm brings nearly $4 million at auction - Successful Farming
SOLD! 230-acre Iowa century farm brings nearly $4 million at auction  Successful Farming

Titanic 'Door' Sells Big at Auction, Reignites Major Debate | TIME - TIME
Titanic 'Door' Sells Big at Auction, Reignites Major Debate | TIME  TIME

Business Card Signed by Steve Jobs Fetches $181K USD at Auction - HYPEBEAST
Business Card Signed by Steve Jobs Fetches $181K USD at Auction  HYPEBEAST

Nigeria's central bank auctions one-year bill at high yield to draw investors - ZAWYA
Nigeria's central bank auctions one-year bill at high yield to draw investors  ZAWYA

‘Titanic’ Door That Jack Tragically Couldn’t Fit on Nabs More Than $718,000 at Auction - Rolling Stone
‘Titanic’ Door That Jack Tragically Couldn’t Fit on Nabs More Than $718,000 at Auction  Rolling Stone

Aisling Bea and Alison Oliver among stars involved in Cinema For Gaza auction - hotpress.com
Aisling Bea and Alison Oliver among stars involved in Cinema For Gaza auction  hotpress.com

Auction of Pattie Boyd's trove of treasures surpasses expectations as it nets $3.6 million - ABC News
Auction of Pattie Boyd's trove of treasures surpasses expectations as it nets $3.6 million  ABC News

'Titanic' Door That Rose Used After The Sinking Tops Planet Hollywood Auction - Yahoo Finance UK
'Titanic' Door That Rose Used After The Sinking Tops Planet Hollywood Auction  Yahoo Finance UK

Auction Calendar 3-29-24 - AgUpdate
Auction Calendar 3-29-24  AgUpdate

Kobe Bryant's 2000 NBA championship ring gifted to his father is up for auction - Los Angeles Times
Kobe Bryant's 2000 NBA championship ring gifted to his father is up for auction  Los Angeles Times

Steve Jobs signed Apple Computer business card achieves over $180000 at auction — about 14X more expensive ... - Tom's Hardware
Steve Jobs signed Apple Computer business card achieves over $180000 at auction — about 14X more expensive ...  Tom's Hardware

Justin Mason's 2024 Auction Championship #2 Live Stream | RotoGraphs Fantasy Baseball - fangraphs.com
Justin Mason's 2024 Auction Championship #2 Live Stream | RotoGraphs Fantasy Baseball  fangraphs.com

Eneco Withdraws from IJmuiden Ver Offshore Wind Auction, Calls for Change in Future Dutch Offshore Wind Tenders ... - Offshore WIND
Eneco Withdraws from IJmuiden Ver Offshore Wind Auction, Calls for Change in Future Dutch Offshore Wind Tenders ...  Offshore WIND

Titanic's Floating Door Sells for Whopping $718750 at Auction, Beating Indiana Jones' Bullwhip - PEOPLE
Titanic's Floating Door Sells for Whopping $718750 at Auction, Beating Indiana Jones' Bullwhip  PEOPLE

Online Pennsylvania unclaimed property auction being held this week; here's what you can bid on - Yahoo! Voices
Online Pennsylvania unclaimed property auction being held this week; here's what you can bid on  Yahoo! Voices

Tilda Swinton, Brian Cox and ‘Saltburn’ Star Alison Oliver Items Up for Auction to Aid Palestinians in Gaza - Hollywood Reporter
Tilda Swinton, Brian Cox and ‘Saltburn’ Star Alison Oliver Items Up for Auction to Aid Palestinians in Gaza  Hollywood Reporter

'Titanic' Prop Door Sells for $718000 at Auction - Us Weekly
'Titanic' Prop Door Sells for $718000 at Auction  Us Weekly

RE: Audi R8 | PH Auction Block - Page 1 - General Gassing - PistonHeads
RE: Audi R8 | PH Auction Block - Page 1 - General Gassing  PistonHeads

'Titanic' Door That Saved Kate Winslet's Character's Life Sold at Auction - Men's Journal
'Titanic' Door That Saved Kate Winslet's Character's Life Sold at Auction  Men's Journal

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