Other Online Scams

Internet Auction Fraud

The number one online scam is Internet Auction Fraud.  It accounts for 64% of all reported internet fraud.  Auction fraud is fraud due to the misrepresentation of an advertised item for sale by auction.  It also includes an undelivered item sold by auction or a unpaid item sold by auction.   

To avoid Auction Fraud look for:   

• Understand as much as possible about how the auction works, what your obligations are as a buyer, and what the seller's obligations are before you bid.
• Find out what actions the web site/company takes if a problem occurs and consider insuring the transaction and shipment.
• Learn as much as possible about the seller, especially if the only information you have is an e-mail address. If it is a business, check the Better Business Bureau where the seller/business is located.
• Examine the feedback on the seller.
• Determine what method of payment the seller is asking from the buyer and where he/she is asking to send payment.
• If a problem occurs with the auction transaction, it could be much more difficult if the seller is located outside the US because of the difference in laws.
• Ask the seller about when delivery can be expected and if there is a problem with the merchandise is it covered by a warranty or can you exchange it.
• Find out if shipping and delivery are included in the auction price or are additional costs so there are no unexpected costs.
• There should be no reason to give out your social security number or drivers license number to the seller.

(List from Federal Bureau of Investigation on Internet Fraud- http://www.fbi.gov/majcases/fraud/internetschemes.htm)

Other Online Scams include:

• Internet Service Provider Scams

• Internet Web Site Design/Promotions (Web Cramming Scams)

• Credit Card Scams

• Marketing Scams

• Travel/Vacation Fraud

• Work-At-Home Scams

• Health Care Frauds

For a list of other Online Scams http://www.ftc.gov/opa/2000/10/topten.shtm