Fighting fraud - online auction DOs and DON'Ts

By DOUG GRIFFITHS

On a worldwide scale a huge number of transactions are completed successfully each day using online auction sites like EBay and Amazon, but we only ever seem to find out about the horror stories. And while our interest peaks when we hear about auctions gone bad, according to figures released by EBay, only a tiny fraction of it's sales (less than 0.01 per cent) account for fraudulent transactions.

Online fraud comes in many forms, but the methods favoured by the con artists include account hijacking, and "shilling". Shilling is where a seller bids on his or her own auction in an attempt to increase the final sale price. Some instances of shilling even include a third party, who, in cahoots with the seller, bids on an auction while never intending to actually purchase the goods on offer.

Most auction sites like Trade Me, EBay and Amazon do have systems in place designed to protect their clients, but as with any transaction that you intend to carry out over the internet, security should begin at home. By following a few simple guidelines (listed below), the chances of you being duped by a fraudster are dramatically reduced.

DO check the feedback on the person offering to buy your goods or sell you something.

DO make contact with a seller and DO ask questions about goods that are for sale.

DO take advantage of in-house systems (like Trade Me's SafeTrader) if they are available.

DO check bidding patterns. Shilling often includes a number of high value bids early in an auction.

DO ensure the website you are visiting is 100 per cent the genuine article.

DON'T send any goods sold until payment has been received in full.

DON'T disclose your account information, including logon name and password, to anyone.

DON'T waste any time contacting the administrator of the online auction site if you suspect that you have been the victim of fraud.