Online auctions can be a great way to scoop holiday gifts at a screaming deal. Unfortunately, online fraud can end up having you screaming at the mirror instead.
From the old product switcheroo to undelivered merchandise, the pitfalls of online shopping and auctions can be many. Here are seven tips from PropertyRoom.com chief executive officer PJ Bellomo, to help you avoid being a victim of online shopping fraud.
- Know the system: Make sure you know how the auction site works before placing any bids. Reading up on the rules of the site &mdash including policies on auctions with a reserve price that must be met &mdash reduces your chances of running into unwanted surprises.
- Google is your friend: To get an idea of a site's reputation, do an online search via Google, Bing or your search engine of choice. You'd be surprised at what you might turn up by simply Googling a company's name with keywords such as "fraud" and "scam."
- History lesson: Those who don't learn from history are doomed to repeat it. The same thing holds true for auctions. Sites such as eBay and Amazon, for example, allow you to view feedback and reputation ratings for individual sellers. Obviously, you'll want to deal with people who have a good and established selling history.
- Making contact: Verify the phone number and other contact information of a seller before you make a purchase. Ideally, you'll want to avoid purchasing from sellers who are out of the country, according to Bellomo. Personally, I've had both good and bad experiences from overseas sellers so just make sure you do the requisite digging around before ordering from someone overseas.
- Don't get personal: Be extra cautious about sites that require personal information. This includes sites that ask for social security and driver's license numbers.
- Whip out the plastic: Paying with a credit card gives you an added layer of fraud protection and keeps your bank account info off the hands of potential shysters and scam artists.
- Follow common sense: If a deal sounds to good to be true, it probably is. When a seller claims to have brand new 16 GB Sony Memory Sticks (normally about $100) for $9, for example, chances are it's fake. In fact, I've seen this happen.
