eBay can be a great place to buy and sell items online. However, as with other money-making opportunities, there are unscrupulous people that will use the site to take advantage of consumers. It’s important to know what to watch out for. Here is a list of unethical tactics mentioned on eBay’s website:

“Shill Bidding”: This is when a seller has multiple accounts or a group of friends who deceitfully make higher and higher bids to increase the seller’s overall profit margin.

“Bid Shielding”: In this scenario, the buyer with the multiple accounts or group of friend bidders will keep upping their bids but then retract them. This process is used to scare off other bidders. Then, the bidder with the lowest bid gets the item for bottom-dollar price.

“Switch and Return”: A buyer will purchase an item from you and return it. The catch – the item they return is not what you sold them; it’s a fake.

“Fakes and Reproductions”: Sellers may provide fraudulent certificates of authenticity on collectors’ items. This may be done on rare items billed as being in “mint condition.” Watch out for wording such as “to my knowledge” or “I think.” Be especially aware of counterfeit trading cards.

There are some precautions consumers can take to predict and prevent internet crime.

• Know who you are dealing with! Find out a seller’s information. Do this by placing a low bid on an item and go to http://search.ebay.com/advancedsearch. Enter in “the seller’s name and item (more…)

Online auctions can be a great place for finding deals at any time of year, but over the holidays such sites become hot spots for tracking down popular and hard-to-get gifts — such as new game consoles or must-have toys.  Better Business Bureau offers advice to shoppers on how to avoid getting ripped off when searching for bargains and hard-to-find presents through online auctions.

According to Jupiter Research, $38 billion will be spent on items auctioned through eBay alone in 2009.   For most buyers and sellers, the transaction is successful; however, online auctions can be fertile ground for scammers. In 2008 half of all complaints to the FBI related to online fraud were the result of online auction fraud and non-delivery of merchandise.

When bidding online for holiday gifts, BBB recommends that shoppers:

Find out how the auction site protects buyers and sellers from fraud. A responsible online auction site will take steps to protect both buyers and sellers from fraud. Find out what actions the auction site will take in your defense if you become a victim of an unscrupulous seller.

Compare the cost of the item elsewhere. Scammers will often price their items lower than the competition in order to lure in buyers. A lowball minimum bid for an item should be considered a red flag.

Research the seller. Online auction sites often provide the opportunity for buyers to rate sellers and provide feedback on the transaction. These reviews are a great way to determine the seller’s track record, but keep in mind that reviews are typically not authenticated and some sellers will pay for flattering reviews in order to mislead buyers. (more…)