Steps to prevent fraud in e-auction includes:
- Try to understand as much as possible about how an online auction works, what are the
buyer's obligations and what are seller's obligations before placing a bid.
- Become familiar with the auction website by looking into the websites protection policies.
You should never assume that you are protected from any auction fraud.
- Beside familiar with the website, you should also learn as much as you can about the seller.
Checking the seller's feedback at the auction site could be a good way. Avoid doing business
with the sellers if you cannot find out anything about them.
- Do not use an escrow service that you have never heard of if you cannot confirm the
legitimacy. If the seller wants you to use an escrow service that you have never heard of,
look into it. Check out the website or call up customer support.
- Use an online escrow service that will hold the payment until you can inspect the
merchandise. Auction sites such as Yahoo, eBay maintain lists of these services.
- Do not give out your personal data such as identity number, drivers license number, credit
card number, or bank account information until you have thoroughly checked out the seller
and the escrow service.
- Always use a credit card for payment. Credit card payment protects the buyer because you
can dispute the charges of the goods are misrepresented or never delivered. If you suspect
fraud, cancel the card immediately.
- Keep a habit to save 100% of the transaction information.
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