112th Precinct Community Council

Internet Auction Fraud by Heidi Harrison Chain

on-line auctions

The FBI released an internet crime report for 2006 which indicated that 45% of the internet fraud was as a result of on line auction fraud. :
The on-line auction fraud includes:
a. the non delivery of merchandise
b. the delivery of merchandise that differs from what was ordered
c. additional unexpected delivery costs –not included in the auction price

The safest way to purchase something from an online auction site is to use your credit card, because your credit card company will offer you a way to dispute the charges.

Steps to take to protect yourself

Here are the steps recommended by the FBI that can prevent you from being a victim of auction fraud.
1. Before you buy at an online auction – you should understand how the particular site works-
a. Learn the seller’s obligations
b. Ask what your obligations are as a buyer
c. Ask when the delivery can be expected
d. Ask if the auction price includes all costs –or if there are additional charges or costs
2. Learn the steps that the particular site takes if there is a problem. ASK THE QUESTIONS --DO THIS BEFORE YOU BUY ON THAT SITE.
3. Ask about warranties before buying
4. Ask about exchange policies before buying
5. Ask if you can insure the transaction and shipment – so that if you do not receive it you are insured- or if it comes in damaged
6. Learn as much information about the seller as possible
a. See if there are complaints registered at the better business bureau
b. Check on the internet and see if there are discussions elsewhere regarding problems on that site.
c. If there are lots of complaints from others – DO NOT USE THAT SITE
7. Determine the method of payment that the seller is requesting-
a. If you have to send the payment to a business
b. If you send the payment to a PO Box- (This involves more risk)
8. Be aware that if the auction site is located outside of the US- you will have less protection
9. NEVER GIVE OUT YOUR SOCIAL SECURITY NUMBER to purchase something on line!

In the event that you are a victim

In the event that you are a victim of internet on line auction fraud the FBI report indicates that you should:
1. File a complaint with the online auction company
2. File a complaint with the internet crime complaint center http://www.ic3.gov
3. File a complaint with local law enforcement
4. If appropriate file a complaint with the shipper
5. File a complaint with the national fraud information center (www.fraud.org/info/contactinfic.htm)
6. File a complaint with the Better Business Bureau( http://www.bbb.org)