Another scam involves phony sellers bidding on their own items to drive up prices. Or, phony buyers submit very high bids to discourage other bidders from competing for the same items, then retract bids, so their friends can get items at lower prices.
Payment scams include con artists sending phony checks or money orders for amounts greater than items’ prices to pay for items. Buyers ask sellers to deposit payments, deduct actual sale prices and return the difference. Buyers later discover the checks were bogus. Or, sellers insist buyers use particular escrow services that send payments directly to sellers instead of holding them until merchandise is received. Buyers never receive promised goods, can’t locate sellers or get their money back.
The Better Business Bureau offers the following advice when using online auctions:
• Research products before bidding to make sure they’re exactly what you want and worth the money.
• Verify the seller’s identity and reputation.
• Ask about warranties, follow-up service and return policies.
• Pay by credit card, escrow service or COD.
• Save transaction information in case you need it later.
• Work problems out directly with the seller, buyer or site operator. If that fails, file a complaint with the attorney general’s office, BBB, Federal Trade Commission or Internet Crime Complaint Center.
And, never give out personal information until you’ve checked out sellers and online payment or escrow services. Check them out with your BBB by visiting www.bbb.org or calling (937) 222-5825 or (800) 776-5301.
John North is president and CEO of the Better Business Bureau.
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