ONLINE AUCTION FRAUD

1
ONLINE AUCTION FRAUD

• WCBA

2
Introduction

• This presentation is to inform consumers about
  online auction fraud
• Last updated by Sarah White

3
ONLINE AUCTION FRAUD

• Facts about online auctions
• Online auction fraud statistics
• Examples of online fraud
• Prevention
• Terminology

4
Facts about Online Auction

• There are more than 1,400 online auction sites
• Ebay.com, Amazon.com, Yahoo!Auctions, eHammer.com
• Online auctions are the fastest growing segment
  of electronic commerce
• Expected to top 19 billion by 2003

5
Online Auction Fraud Statistics

• Online auction fraud is the number one internet
  fraud
• Average auction fraud is 248 per complaint
• 3.2 million was lost due to fraudulent activity
  in 1999

6
Examples of Online Fraud

• Man lost 2000 when he won the bid for a computer
  systemthe computer was never delivered
• A Mr. Walton was suspended from eBay because he
  entered bids on his own objects
• Site selling votes for president

7
Prevention

• Use common sense
• Use a credit card
• Check the sellers reputation
• Find out return policy
• Use escrow service
• Take time to learn true value of items before you
  bid

8
Terminology

• Shilling Sellers use another account to make
  bids on their own goods (drives price up)
• Shielding Bidder places low bid on item, and
  then places other much higher bids on same item
  using different account names. Scares off other
  biddershigh bids are withdrawn within seconds of
  the end of the auction