Auction is a process of buying and selling goods or services by offering them up for bid,taking bids,and then selling the item to the winning bidder. It may refer to any mechanism or set of trading rules for exchange.
There are some types of auction which divide into primary and secondary type. Primary types include english auction, dutch auction, sealed first-price auction and vickery auction. Secondary types include all-pay auction and combinatorial auction.
Some tips for prevent e-auction fraud as followings:
(1)understand how the auction works
majority online auction will simply list the items that seller want to sell. Actually they don't verify the merchandise whether exists or not and would it described accurately. Sometimes
they can't guaranty the seller will keep their promise.
(2)check out the seller before bid
feedback forums with comments about seller based on customer's experience of auction sites should be aware by other customer.The negative information is a good warning sign,but the clean complaint record doesn't guarantee the transaction will go smoothly.
(3)be careful if seller is private individual
most of the concumer protection law doesn't apply to private sales, through goverment agencies may take action if there are many complaint the same individual or criminal fraud involved.
(4)get the information about seller
such as name,physical street address,email address and phone no are helpful for checking the seller out and following up if there is a problem.
(5)be wary of claims about collectibles and other expensive items
since customer can't examine the merchandise or have it appraised until after the sale,don't assume that claims about its condition or value are true.Save a copy of the description and any information to document claims that were made.
(6)aware about delivery,returns,warranties and service before made payment
ask about the return policy and get teh definite delivery time and insist that the shipment is insured.
(7)look for information on the auction site about insurance
some auction site will provide insurance that covers customers to a certain amount if somethings goes wrong.Read the terms of insurance carefully .Sometimes, there would be a deductible and limitations or requirements that apply.
(8)look for bonded sellers
some seller are bounded through programs that have investigatedd their business background and credit histories and guaranty your money back if they don't fulfill their promises.
(9)using escrow service for expensive purchase that aren't covered by insurance or bonding
it takes customer payment and forward it to seller once customer had confirm satisfactory delivery.If there is dispute, escrow service may act as referee.
(10)inform auction site about suspected fraud
the auction may have policies to remove sellers from the sites if they use"shills" or don't live up to their obligations.
referrence links:http://en.wikipedia.org/wiki/Auction
http://www.fraud.org/tips/internet/onlineauctions.htm
There are some types of auction which divide into primary and secondary type. Primary types include english auction, dutch auction, sealed first-price auction and vickery auction. Secondary types include all-pay auction and combinatorial auction.
Some tips for prevent e-auction fraud as followings:
(1)understand how the auction works
majority online auction will simply list the items that seller want to sell. Actually they don't verify the merchandise whether exists or not and would it described accurately. Sometimes
they can't guaranty the seller will keep their promise.
(2)check out the seller before bid
feedback forums with comments about seller based on customer's experience of auction sites should be aware by other customer.The negative information is a good warning sign,but the clean complaint record doesn't guarantee the transaction will go smoothly.
(3)be careful if seller is private individual
most of the concumer protection law doesn't apply to private sales, through goverment agencies may take action if there are many complaint the same individual or criminal fraud involved.
(4)get the information about seller
such as name,physical street address,email address and phone no are helpful for checking the seller out and following up if there is a problem.
(5)be wary of claims about collectibles and other expensive items
since customer can't examine the merchandise or have it appraised until after the sale,don't assume that claims about its condition or value are true.Save a copy of the description and any information to document claims that were made.
(6)aware about delivery,returns,warranties and service before made payment
ask about the return policy and get teh definite delivery time and insist that the shipment is insured.
(7)look for information on the auction site about insurance
some auction site will provide insurance that covers customers to a certain amount if somethings goes wrong.Read the terms of insurance carefully .Sometimes, there would be a deductible and limitations or requirements that apply.
(8)look for bonded sellers
some seller are bounded through programs that have investigatedd their business background and credit histories and guaranty your money back if they don't fulfill their promises.
(9)using escrow service for expensive purchase that aren't covered by insurance or bonding
it takes customer payment and forward it to seller once customer had confirm satisfactory delivery.If there is dispute, escrow service may act as referee.
(10)inform auction site about suspected fraud
the auction may have policies to remove sellers from the sites if they use"shills" or don't live up to their obligations.
referrence links:http://en.wikipedia.org/wiki/Auction
http://www.fraud.org/tips/internet/onlineauctions.htm
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