Tips to Avoid Online Auction Scams

WebKnowHow
Friday, November 24, 2006; 07:36 AM

Auction site PropertyRoom.com has developed the following list of “do’s and don’ts” for anyone planning to hit online auction sites to bid for holiday gifts. These tips are designed to help consumers find the best deals and the items they want — without being defrauded.

Follow These Tips to Find What You Want at the Best Price…

• Look for sites that prohibit “sniping.” It is frustrating for many bidders to watch their auction for a few days only to have it “sniped” away. “Sniping” is the practice of using automated software to place a bid for a penny more in the last seconds of an auction. To defend against this, trusted sites use automatic bid extend and work just like physical auctions: the auction closes only after everyone gets a chance to match the increased bid.
• Look for auctions that have been overlooked. Resist the temptation to bid on a “hot” auction with lots of bids. Instead, pick a category you’re interested in, such as cameras, and do a search for auctions closing soon that do not have bids. While a bidding war may be going on for the Pentax point and shoot, the Canon SLR may have been overlooked.
• Stick to your price. Don’t get sucked into auction frenzy. Set a price you’re willing to pay and be willing to let an item go. For “one-of-a-kind items,” allow for flexibility — but only to an extent.
• Do research. More often than not, there is value in an auction that a seller may not realize. Stick to auction categories that you know something about. The more you know, the more advantage you will have over other bidders.

…And Follow These Tips to Avoid Getting Ripped Off

• Determine If a Seller is For Real. There are two things shoppers can do to perform their own background check on a seller: 1) Check to see if the seller has a brick-and-mortar store or their own Web site; either can indicate they're for real. 2) Look at ALL of the items a seller is selling. Scam artists often try to game the system by selling low-cost trinkets to gain a high ranking and then quickly switch to selling big-ticket items like computers… which buyers never see.
• Ask questions… about the item you're buying or about the seller themselves. If the seller does not respond before you buy, you can bet they won't afterward.
• ALWAYS pay by credit card. Most reputable card issuers insure you in the case of fraud, with many imposing a $50 cap on losses. NEVER buy with a debit card or by electronic check… doing so could give scam artists the info they need to drain your bank account.
• Examine customer satisfaction, shipping and return policies. Does the company or seller stand behind their goods? Do they have a flexible return policy? The ability to pack and ship an item within 24 hours is a good indication of whether a seller can be trusted.
• Let the seller know promptly if you have issues. Don't wait. The holidays are a busy time and retailers, both on and offline, are busy. Act quickly and don't let the issue slip away.

PropertyRoom.com works with more than 800 law enforcement agencies nationwide to auction found, seized and other personal property online. The PropertyRoom site also hosts trusted third-party merchants, such as Always At Market, that auction goods in accordance with the company’s strict guidelines and standards. PropertyRoom guarantees transactions for buyers and sellers by monitoring the payment and delivery process.