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Auction and Retail Scams

If you're shopping at an auction and you see a price that's just too good to be true... be careful. Online auction scams are the most frequently reported form of Internet fraud reported to the Federal Trade Commission, the Department of Justice and IFW.

These crimes typically offer expensive items, such as Cartier watches, Beanie Babies, computers, and cars at prices that are low enough to dull the scam alarm in most people.

The scammers pick high cost items because they know that this will attract the most customers. The winning bids on these items are so far below retail value that they are impossible to pass up.

The problem is that they are not honest. When you send your check or money order for the winning bid you receive a cheap substitute, or worse, nothing at all.

Always check the background of an auction seller before you send money. Reviews by other buyers can tip you off to a bad deal. Check the e-mail addresses of the positive reviews. A scammer may post glowing comments using different names, but the coming from the same e-mail address. Send an e-mail to a few of the happy customers for verification before you send money to a stranger.

Spam and Scams
Spam is often more than a nuisance. That unsolicited e-mail clogging your mailbox may be an invitation to a scam. While spam may not be illegal, it is unethical and reputable businesses do not send spam. The best way to stop spammers is to just hit the delete key and NEVER answer an unsolicited e-mail offer.

Everyone knows not to respond to spam, but if you're shopping for a bracelet for someone special and you receive an e-mail that reads...
Subject: Live 3 minute auctions
Live 3 Minute AUCTIONS! Best Deals on Jewelry, Computers, Electronics, Watches, Etc. - All starting at $1 with No Minimum Reserve. CLICK HERE! You Set The Price!
Can it hurt to go take a look?

You bet it can! This e-mail is one identified by the Federal Trade Commission as a scam. You bid, get the jewelry for an unbelievably low price, send off your money and... never receive anything. You become part of the statistics on Internet scams... proving, once again, that spam is a great way to find fools willing to be parted with their money. Make a mental note. Even if it seems harmless or too good to pass up - avoid being tempted to respond to spam. It will only do away when it doesn't produce a good pay day for the spammers.

Escrow Accounts
One way to protect yourself from spammers at auctions is to use an escrow account. These accounts will hold your money until you receive the merchandise. If you do not receive what you ordered, your money gets returned to you. Many credit card companies offer the same protection, but private vendors at auctions may not have the ability to take credit card payments.

Not to miss a trick, scam artists have started escrow accounts where you send your money in good faith and find that the company no longer exists when you request a refund.

The bottom line is that when you deal with an unknown vendor without seeing the merchandise you are buying, you take a chance. Most auction sellers are honest and you can find excellent bargains. Just remember that if something seems to good to be true... it probably is.

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