Buying through Online Auctions? Be aware of the frauds you are exposed to!
According to the FBI, online-auction-frauds constitute roughly 50% of the scams going on in a year. Not surprising, if one considers that one-third of all online trading happens in this manner. Such transactions are more vulnerable to scams because everything is done online here - this shrinks down considerably the number of ways you can verify an offer. This is why it’s hard to spot a scam until you actually end up in one.
Here’s a story on what to expect and how to be armed!
Seizing your site account
The first method scammers adopt actually involves your auction-site account. They take charge of your account and use it to buy and sell at the site. Phishing is the most popular route taken by scammers to achieve this takeover.
Scammers send messages to your ordinary mail accounts that look like they were being sent by the auction-site administrator. These messages look very similar to the system messages that are regularly posted to site members. They would require you to submit your account details at a link embedded in the message.
A particularly cunning way to do this is to have you do it at the auction site when you are in the midst of a transaction. A click for product info, for example, is subverted to a scam site asking you to confirm account details. Scammers have figured out that you are more likely to give away your details when prompted in this manner!
They can also use keystroke-capture software to access your passwords and other account details. This software may be inconspicuously downloaded to your system when you click on a link sent by them.
Being sold phony products
This happens when you receive goods that, you know, are nowhere as good as they were shown and made out to be. Or you might receive outright counterfeit products of well known brand names.
The scammers take advantage of popular auction items like jewelry, computer hardware accessories, iPods or batteries and try to push through fake goods. You won’t notice the difference at first glance unless you are an expert.
While buying software online, you can also be scammed by being sold products already registered or of older versions than what you requested for.
Bidding manipulators
Finally, scammers may work towards increasing your bid amounts. An associate of the seller first over-bids you and then without your knowing, later retracts his bid. In this case you’d probably end up paying much more than a product is worth.
They may also scam by working in a group to maintain a high bidding amount for a product to discourage other bidders from participating. Then towards the end of bidding, they’d retract their bids and buy the products at a throwaway price.
How to arm yourself against Scammers
- Awareness is the key. Scammers are known for their ingenuity. So keeping yourself updated is the first line of defense.
- Check out your account regularly and frequently. This will bring to your notice any transactions not authorized by you. These were probably completed by scammers who ‘phished’ out your account information. Report any mysterious transactions immediately.
- Load anti-spyware software in your computer. This would prevent key-logging software being planted by the scammers in your system.
- Before bidding, check out the reviews available at a site. This will prevent some obvious blunders.
- Never entertain messages from the auction site that you receive in the public domain. All genuine messages will be posted to your account. Login to your account and read them there.
Doing the above can easily avert your falling for a scammer’s snare.
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- The Decalogue for Online Shoppers!
- Perry Belcher : Mr. Internet Scam Artist’s Ownership Sold at Auction
- Ben Haag arrested: Police act on scam complaints on Ebay
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