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How to Spot an Auction Scammer

Auction fraudsters take advantage of the uninitiated and the unwary every day. Reading up on the auction site's consumer alerts, privacy policies, and buyer protection policies are the first step to avoiding rip-offs. After that, learn to read the warning signs that point to a con artist in action.

• Too-good-to-be-true offers. Savvy auction shoppers can find great deals online but you can't buy diamonds for dime-store prices. Don't fool yourself into getting robbed.
• No feedback. If you can't find feedback on the seller's reputation, verify their identity or confirm their contact information, it may be smart to look for another more proven seller.
• Off-site offers. If a seller offers to sell you an item off the legitimate online auction site, don't respond. Once you leave the auction site you loose any protections the original site provided.
• Second chance offers. If you lost the auction but the seller contacts you and offers to sell you the item anyway (usually off-site), they're probably attempting to scam you.
• The seller asks you to pay by wire transfer or cash. Fraud victims who pay by these methods can't get their money back. Checks or money orders also offer little in the way of consumer protection.
• The seller insists on using a particular escrow service. A legitimate escrow service can be a smart move for large purchases, but if a seller insists on using a service unfamiliar to you, be wary. Sometimes operators of fraudulent escrow Web sites pose as sellers or buyers to steal money or goods.¹
• Shill Bidding. If the same buyer's bids always seem to drive up the price on the auction site but that buyer never wins they might be in on a scam.
• Overpayment. If a buyer "accidentally" sends a check or money order for more than the agreed upon purchase price it is very likely they are attempting to perpetrate a counterfeit check scam. Sellers who choose to accept checks or money orders should always wait for the check to clear before shipping the goods or spending the money.

1. Federal Trade Commission, "Online Auctions: Bidders Be Wary"