Bitten bidders
Online auction fraud turns complex--and expensive
ESCROW WATCH. Avoid online escrow services that require users to set up accounts with online payment services. Escrow services are in the business of taking money and should be equipped to do so themselves. Online escrow services should also not claim to comply with the "U.S. Financial and Business Code." No such code exists.
NOTHING'S THAT CHEAP. Too-low prices can be a sign something's amiss. Check stores and price comparison sites for realistic prices.
AVOID STRANGERS. Be wary of buyers and sellers who try to lure customers away from auction sites with promises of better deals.
DON'T TELL. Auctions are not confessionals. Don't disclose sensitive information without knowing why it's being collected, how it will be used, and how it will be protected. Don't respond to threats that accounts will be terminated unless such details are provided.
PUSH PLASTIC. The safest way to pay is by credit card, as your issuer provides charge-back protections. Beware of sellers who say they accept credit cards but reveal later that the buyer must use his credit card to do a wire transfer; such transfers have no safeguards.
For more information, consult the following online resources:
FEDERAL TRADE COMMISSION
www.ftc.gov
Get more tips on avoiding a bad auctioneer.
INTERNET FRAUD COMPLAINT CENTER
www.ifccfbi.gov
Your complaint will be forwarded to the appropriate law enforcement authorities.
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