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Auctions Scams .

Auction sites have recently been bombarded with phony auctions by sellers who have hacked into real eBay customer accounts.

What happens is the hacker attacks a legit eBay members account and places items for sale in which the hacker does not intend to sell.

ISL recommends that all eBay users maintain at least some form of contact with the buyer and use common sense when buying.

If you see that dream car of yours for sale for 300$ buy it now, I would seriously try and contact the seller and arrange a physical meeting before sending any money.

Other recent scams are letters from PayPal and eBay informing a legit customer that their account will die if they do not send in very personal information.

Below is a sample of an actual scam email.

Dear valued costumer,

eBay's acquisition of PayPal was completed on October 3, 2002. As part of our continuing commitment to protect your account and to reduce the instance of fraud on our website , we are undertaking a period review of our member accounts. You are requested to visit our site by following the link given below ,

https://cgi4.ebay.com/aw-cgi/eBayISAPI.dll?UserVerify (Note: The real link has been disabled in this example)

This message was sent to you courtesy of eBay's computerized e-mail system. Please do not send a reply to this message, as it will vanish into the mysterious electronic void. If you have a question or some input, and would like a response from a live, caring human being, please e-mail us at info@eBay.com.

Copyright © 1995-2002 eBay Inc. All Rights Reserved. Designated trademarks and brands are the property of their respective owners. Use of this Web site constitutes acceptance of the eBay User Agreement and Privacy Policy

  • This form asks you to fill in virtually every piece of personal and financial data about yourself, your accounts, your ebay passwords, banking passwords, checking account, all in the name of "reducing fraud" on eBay.
  • This data is *not* collected or submitted in a secure format (even though it SAYS it is). Look for the "https" in the URL line, which is the indicator of a secure site.
  • The links do appear to work, and direct you to eBay's site .. but this is all a ploy to look-and-feel authentic.
  • Notice the incorrect eBay copyright dates 1995-2001 ... which should be 1995-2003. Notice the typos and misspelled words in the request e-mail.
  • A certain percentage of people who receive these requests do forward their private information, and, as a result are subject to instant "identity-theft". Be cautious !!

Ebay has created a special web page on this subject. Take a moment to review it.

Common sense tips

  • Don't open attachments from strangers.
  • When in doubt, ask the person who sent the attachment to you if it's OK.
  • If they say the attachment's OK, scan it with updated antivirus software.
  • Never email your credit card number. No upstanding company will request your credit card number or login name via email.
  • Keep your Windows software updated at Windows Update to prevent email messages from ever executing malicious code.
  • Understand how the auction works. Many online auctions simply list items that people want to sell. They don’t verify that the merchandise actually exists or that it is described accurately, and they can’t guaranty that the sellers will keep their promises.
  • Check out the seller before you bid. Some auction sites have feedback forums with comments about the sellers based on other people’s experiences. Be aware that positive reports may have been “planted” by the seller and negative comments could be from a competitor. Other sources of information are state or local consumer protection agencies and the Better Business Bureau. Negative information is a good warning sign, but a clean complaint record doesn’t guarantee that your transaction will go smoothly.
  • Be careful if the seller is a private individual. Many consumer protection laws don’t apply to private sales, though government agencies may take action if there are many complaints the same individual or criminal fraud is involved.
  • Be especially cautious when dealing with sellers in other countries. If you have a problem, the physical distance, difference in legal systems, and other factors could make resolving it very difficult.
  • Beware of “shills.” The seller may try to raise the price artificially by making bids under fictitious names or recruiting other people to make bids. Using bogus bidders is illegal and a violation of online auction policies.
  • Get the name and contact information of the seller. The name, physical street address, email address, and phone number are helpful to have for checking the seller out and following up later if there is a problem. Don’t do business with anyone who refuses to provide that information.
  • Be wary of claims about collectibles and other expensive items. Since you can’t examine the merchandise or have it appraised until after the sale, don’t assume that claims about its condition or value are true, or that photographs are accurate. Print out and save the description and any photos to document the claims that were made.
  • Ask about delivery, returns, warranties and service before you pay. Get a definite delivery time and insist that the shipment is insured. Ask about the return policy. If you’re buying electronic goods or appliances, find out if there is a warranty and how to get service.
  • Look for information on the auction site about insurance. Some auction sites provide insurance that covers buyers up to a certain amount if something goes wrong. Others may have links to third-party programs that offer insurance for a fee. Read the terms of the insurance carefully. There is often a deducible, and there be other limitations or requirements that apply. For example, you may not be covered if the seller had a negative feedback rating on the auction site at the time of the transaction.
  • Pay by credit card. Under federal law, you can dispute the charges if you paid the seller with a credit card and the goods were never delivered or if they were misrepresented. If you are paying through an intermediary service, ask what happens in the case of disputes.
  • Consider using an escrow service. For a small fee, an escrow service holds the buyer’s payment and forwards it to the seller upon the buyer’s receipt and approval of the item within an agreed upon inspection period. If there is a dispute about the item, the escrow service may act as a referee. Ask if the service is licensed and bonded, and how you can confirm that with the appropriate agency.
  • Try mediation to resolve disputes. Not all problems are due to fraud. Sometimes people simply fail to hold up their side of the bargain in a timely manner or there may be a misunderstanding about something. Some auction sites provide links to third-party mediation services that help people resolve disputes. There may be a small fee that is usually paid by the party who requests the mediation.
  • Inform auction sites about suspected fraud. They may have policies to remove sellers from their sites if they use “shills” or don’t live up to their obligations.