Things to take notes to prevent e-auction fraud when a consumer participating in an e-auction.

Auction

Market mechanism by which buyers make bids and sellers place offers; characterized by the competitive and dynamic nature by which the final price is reached

Electronic Auctions (e-auctions)

Auctions conducted online

Although e-auction has it benefits but there are also things that we need to prevent.

There is several type of e-auction fraud:

• · Bid shielding – having fake (phantom/ghost) bidders bid a very high price and then later pull out at the last minutes

• · Shilling – placing fake bids on auction items to artificially jack up bidding price

• · Fake photo and misleading description

• · Improper grading techniques

• · Selling reproductions

• · Failure to pay

• · Failure to pay to the auction house

• · Inflated shipping and handling cost

• · Failure to ship mechanism

• · Loss and damage claims

• · Switch and return

• · Other frauds, e.g. sale of stolen goods, the use of fake ids, selling to multiple buyers.

Internet auction fraud were non-delivery of items, misrepresentation of items' value, stealing of goods from an online merchant through the involvement of a third party (triangulation), adding extra charges once bidding was completed (fee stacking), the sale of black-market goods, multiple bidding by the same buyer under different accounts or aliases, and false bidding by the seller (shill bidding).

Protecting Against E-Auctions Fraud:

• · User id verification

• · Authentication service

• · Grading services

• · Feedback

• · Insurances policy

• · Escrow services

• · Nonpayment punishment

• · Appraisal

• · Physical

• · Verification

references:http://www.crimcheck.com/background-check-news/whats-internet-auction-fraud-and-how-do-i-prevent-it