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

E-auctions are becoming important selling and buying channels for many companies and individuals. E-auctions enable consumers to access goods and services anywhere auctions are conducted. Moreover, almost perfect market information is available about prices, products, current supply and demand, and so on. These characteristics provide benefits to all; however, there have several limitations too. The most significant limitations are minimal security, the possibility of fraud, and so on.

The first is minimal security. Some of the C2C auctions conducted on the Internet are not secure because they are done in an unencrypted environment and credit card numbers could be stolen during the payment process.

Secondly is the possibility of fraud may be occurred. Fraud can be committed either by consumers or buyers. It’s because the buyer can’t see the items, the consumer may get defective products. Also, consumer can commit fraud by receiving goods or services without paying for them. Thus, the fraud rate on e-auctions is very high.

Things to take note to prevent e-auction fraud when a consumer participating in an e-auction. Consumer should aware that seller may provide fake photos or misleading descriptions. Borrowed images, ambiguous descriptions and falsified facts are some of the tactics that sellers might employ to convey a false impression of the item. Furthermore, they may also fail to disclosure all relevant information about the item.

Next, seller may sell reproductions as originals. In other words, seller sells something that the seller claims is original, but it turns out to be reproduction.

In contrast, seller also should aware consumer who may failure to pay. Consumers do not pay after a deal is agreed upon. It’s suggested that seller should implement a policy against those who do not honor their winning bids. To help protect sellers, a first-time nonpayment results in a friendly warning. A sterner warning is issued for a second-time offense, a 30 days suspension for a third offense, and indefinite suspension for a fourth offense.

Additionally, consumers may claim that they did not receive an item or that they received it in damaged condition and then ask for a refund. They might be trying to get a freebie. The seller sometime can’t prove whether the item ever arrived or whether it was in perfect condition when shipped. It’s suggested seller can adopt item verification to identify and evaluate the condition of an item. With verification, neutral third parties will evaluate and identify an item through a variety means.

There are also possible that consumer may use of false identities or provide false contract information. Sellers can use the services of Equifax to verify consumer identities for a $5 fee. It’s encourages consumers to supply with information for online verification, by offering their Social Security number, driver’s license number, and date of birth and so on.

Related Links:
1.http://www.eprocurementscotland.com/Home/ePS-Service/eAuction/eAuction
2.http://www.eauctionair.com/
3.http://www.mjunction.in/metaljunction/products_services/what_is_eauction/