Things To Take Note To Prevent E-auction Fraud

E-auction refers to the service that allowed seller post their products and let the buyer bid for the items through the internet. The major characteristic of E-auction is dynamic pricing which means that there is no fixed price for the product and various potential buyers can bid for it. This service is providing by some common website such as EBay and Lelong.com. E-auction generates a number of frauds whether conducted by sellers or buyers such as bid shielding, Shilling, fake photos and misleading descriptions, improper grading techniques and loss and damage claims.

Hence, the largest internet auctioneer, eBay has introduced several things to take note to prevent e-auction fraud which detail as follow:

1) User’s identity verification: eBay encourages users supply their information like driver’s license number, and date of birth for online verification.

2) Grading service: service to determine the condition and quality of the product, for example trading cards are graded from A1 to F1.

3) Feedback forum: The eBay feedback forum enables users give comment for the product they have bought and share the experience with other users.

4) Authentication service: This service can help to determine whether the product is genuine. The expert can help the users to detect counterfeits in the e-auction transaction.

5) Insurance policy: Users are offered insurance by eBay that covered up to $200, with a $25 deductible.

6) Escrow service: It is recommended when the item value more than $200 or additional security is needed. Both parties in deal are protected by third-party escrow service.

7) Nonpayment punishment: It is used to punish those buyers do not settle their payment after the bid. First-time nonpayment results in a friendly warning. A sterner warning is issued for a second-time offense, a 30-day suspension for a third offense, and indefinite suspension for a fourth offense.

8) Verification: Third parties will assess and identify an item through a variety of means. For example, some collectors have their item “DNA tagged” for identification purposes