Online Auction Fraud: Definition and Types
Online Auction Fraud is becoming popular as internet scam increases across the globe. The level of online threats has risen over the years and these fraudsters have improved methods in their online Auction scam.
Online Auction Fraud involves cheating a prospective buyer or seller with fake documentation. In relation to the auction sales.
There are different types of auction scam, and they include:
1. Sending overpaid cheque
This is one of the most common types of online bidding scam targeted at the seller. In this case, the buyer overpays with a fake cheque and ask the seller to return the balance of the amount sent.
2. Wire Transfer trick
They posted fake item for online bid and request for wire transfer and disappear after the transaction with no item delivered.
3. Second chance bid
This is an online bidding scam where a client who lost out on the original auction bid, are offered another opportunity to bid for the item. They usually collect the money and disappear after convincing the client.
4. Delivery Charges
One of the tricks of these online fraudsters is to demand delivery charges for the safe delivery of your items. In some cases, they may demand just for the delivery cost and will ask for total payment on receiving the items. This sound convincing to most victims and they fall for the auction scam.
Complaints of online Auction Fraud
It is encouraged to report any auction scam to the internet crime complaint centers, where cases are being handled. The center has collected data on these Auction scam syndicates, mostly in West Africa and Romania.
Reporting these online bidding scams will help the authorities’ device ways of auction fraud detection. The authorities can now enlighten the public on the methods used by these crime syndicates and advice on ways to prevent falling for their tricks.
Complaints are also important in flagging down suspicious fraud sites and preventing others from falling victims. Numerous complaints from different parties will raise suspicion on that platform, and they will be red flagged. Auction dealers will be made aware of such suspicious activities and avoid such platforms, which will reduce activities of fraud.
Prevention From Online Auction Fraud
The online way to prevent being a victim of online threats from auction scams is to be able to detect the fraud.
Here are some tips on how to detect online action fraud and prevent being a victim:
1. You should insist on a phone number and run a check on that number to verify the true owner. There are methods used by these fraudsters to clone numbers. So always check the numbers provided to you.
2. Avoid making use of payment systems you cannot trace easily. A red flag is if the person insists on just money transfer as payment. You should always insist on a secure and traceable payment method.
3. To ensure delivery of the items you auction, you should use escrow services that will withhold the money until your get you auctioned items delivered. This will protect your money in case the auction bidding process is a scam.
4. Under no condition, should you give a client your personal details like social security number, driving license details, date of birth and other personal information. A legitimate dealer will never ask for those details.
5. You should return any overpaid cheque the way it was sent to you. Always insist on the exact amount of payment and never cash an overpaid cheque.
6. You should always use trusted auction site and always run a review on any auction site you want to make run transaction on.
7. Keep yourself updated on the latest type of auction scam to avoid being a victim. Always check on security sites to learn more about the methods used in internet action fraud as you set measures to avoid falling for their scams.
8. Be skeptical when prices are too low or when you receive a message to re-bid for an item. Always cross-check and verify such processes to avoid falling victim.
Scam Lawyers: Help with Auction Fraud
Falling victim for auction fraud can be avoided, however in cases where one fall a victim, you should report it immediately and get a lawyer.
There are scam lawyers who have knowledge of auction scams and will guide their clients on the right steps to follow. The lawyers will help you with the right documentation and petitions to ensure the case is properly investigated.
Lawyers can also help you avoid such incidents of suspicious online activities when you present these auctions deals to the lawyers. It is advisable to employ the services of a lawyer when dealing with such auction bids, they will help you in documentation and prevent such circumstances when they detect fraud.