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