Q: I am considering the use of eBay as a tool for buying or selling. Is this a safe way to shop, and are there “red flags” to watch for when using the site?
A: EBay can be a great place to buy and sell items online. Unfortunately, with a popular auction site such as this, there are unscrupulous people who will take advantage of consumers if given the opportunity. Consumers need to be aware of this and need to know what to watch out for. Here is a list of things mentioned on eBay’s website:
* Shill Bidding: This is basically when a seller has multiple accounts or a group of friends who deceitfully raise bids to up the profit margin on a purchase.
* Bid Shielding: In this scenario, the buyer with the multiple accounts or group of friend bidders will keep raising their bids but then retract them. This process is used to scare off other bidders from making a bid. 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, only the item they return is not what you sold them but an imposter.
* Fakes and Reproductions: Sellers may provide a fake certificate of authenticity on collector items. This may be done on rare items purported to be in “mint condition.” Also watch out for wording in the ad that states “to my knowledge” or “I think.” Be especially aware of counterfeit trading cards.
Sadly, those are just a few of the terms and practices of unscrupulous eBay participants. There are other precautions eBay users need to arm themselves with to be able 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/_W0QQtZvbQQsofindtypeZ9. Enter “the seller’s name and item number.” EBay will send you the contact information. Then, call this person. Look up the phone number online at www.free411.com and verify their address if provided. Importantly, if the phone number does not work, that is a red flag.
* Concerning payment methods, C.O.D. is ideal as is escrow.com. PayPal also is acceptable, however, unless stated in the ad it does not provide you with $2,000 coverage protection. If using PayPal, it is recommended that you use a credit card.
Credit card companies will refund your money if the seller fails to provide the merchandise. Stay away from money transfers such as Western Union and Money-Gram.
Typically, a scammer uses money transfers to hide their identity so law enforcement cannot track them down. This is especially true if they reside in a foreign country where American laws will not protect you. Checks are not a secure method of payment; counterfeit checks, commercial money orders and postal money orders may be used. The U.S. Postal Service reports that some individuals are being left empty handed. One tactic that overseas scammers use is sending an overpayment via foreign cashier’s check. Then, they request excess money be sent to them via Western Union. This is a common scam.
* Be wary of fake eBay and PayPal sites. If a hot link is listed, place your cursor over it and look at the URL on the bottom. If the two do not match up, there is a problem. Always remember to see if there is an “s” in the “https:” web address; if not, the link is not a secure site. Do not enter personal information on any unsecure site. This is how scammers gather your eBay ID and password, credit card and other personal information.
* Another red flag is if a person only wants to deal through e-mail. It is likely the account is stolen, especially if they are asking for payment via money transfer. Money transfers have to be requested via e-mail because eBay will not publish these types of requests on their site.
* Other red flags eBay advises you to watch out for are auctions that hide the bidders, misuse of English, the product is in a different location from the seller, the eBay “buy-it-now” button is missing, or a product is in the wrong category.
* Keep your password and account secure. Ignore pop-ups that may request personal information. Make sure your computer is protected by updated anti-virus and firewall software. Set your security options in your web browser to alert you when a website is unsafe. Always type out URL addresses provided by eBay and PayPal to ensure that you do not click a link on malware. Be careful opening attachments; they may contain malware.
* Be familiar with the product you are buying to ensure you do not purchase imitations. If you are not familiar with a product, consult with experts. Make note if a picture looks like it was copied from the Internet.
* Be wary of quick-sell auctions, as opportunists will pressure you into buying but will not always deliver.
* Pay the extra money to the post office to get a tracking number is another tip. A postal receipt means nothing without a tracking number, and without this the post office cannot help you locate your purchased item.
As an educated consumer knowing how to avoid potential scams, you will have positive experiences on eBay. Many people enjoy eBay as a tool to find good deals and special interest items. Additionally, many people find eBay a convenient place to sell their wares for profit or simply to clean out their closets. However, consumers have been victims of fraud on popular sites such as eBay. If you suspect a scam or fraud on eBay, report it to your Better Business Bureau, www.bbb.org, or the attorney general in your state. You may report suspected fraud or scam activity to eBay at http://pages.ebay.com/securitycenter/reportproblem.html. Be safe!
Get answers to your questions each Friday from Jim Winsett, president and CEO of the Better Business Bureau Inc., which serves Southeast Tennessee and Northwest Georgia. Submit questions to his attention by writing to Business Editor John Vass Jr., Chattanooga Times Free Press, P.O. Box 1447, Chattanooga, TN 37401-1447, or by e-mailing him at jvass@timesfreepress.com.