E-Auction Fraud Prevention

Auction is a bidding market mechanism where buyers bid and sellers offer in a competition manner to get a products or something which the final price is reached. Thus E-auction is a electronic auction that done through the internet.

There are many types of e-auction fraud. For example

Shilling: It is a place where placing fake bid on auction items. The main purpose is to rise up the bidding price.

Bid shielding: there is some phantom bidders bid at a very high price at the start of an auction and pull out at the last minute and this will cause a bidder of a much lower price to win.

Beside that, there is also a lot of way of fraud can happen. Some will charge with a high shipping costs and handling fees, misleading the description like put on the fake picture of the products, failure to ship to the products and many more.

From the above statements, it is important for everyone to prevent e-auction fraud. There are some ways to be taken to prevent fraud:

User identification verification - it encourages users to provide information for online verification.

Authentication Service- it is a service to determine whether an item is genuine and described in proper manner.

Grading service – a service that determines the physical of the product whether is in a good manner

Feedback forum – this is a forum that provides users to express out their experience dealing with e-auction.

Insurance policy – there is some insurance policy that provide to customers or users like the insurance policy by Ebays with no cost at all.

Buyers also need to take note when they are dealing with e-auction. Buyers are advise to read the company reputation whether the company can be trusted before making any transaction with them. Some of the company who deals with the e-auction will provide some forum to let users to read on the other users comments towards their company image and products.

Nevertheless, check the courier services provided by the company to make sure the delivery are delivered on time without any problems. On the other hand, buyers should be smart enough and bear in mind never bank in money to other people account easily cause there are some fake accounts created to cheat buyers.

“Caution to users: Never give out your bank account and your personal information”

Hope that can help you to prevent fraud during transaction is being made.