Things to take note to prevent e-auction fraud when a consumer participating in an e-auction

Though small in relation to ecommerce turnover, Internet fraud is serious for the victims and for the reputation of the industry. According to NCL, US Internet fraud losses amounted to $6 million in 2001.

E-tailers are gradually adopting protective measures, though more reasonable charging by credit card processing companies would help. Some 70% of e-merchants adopt address verification systems, 54% follow up with their customers or adopt real-time authorizations, and 43% adopt after-the-fact fraud prevention measures.

Below are some E-auction fraud prevention:

(a) User identity verification—It is a voluntary program which encourages users to supply eBay with information for online verification. It qualifies them for highest level of verification.

(b) Authentication service—It determines whether an item is genuine and described appropriately.

(c) Grading services—It is used to determine physical condition of an item.

(d) Feedback forum—It provides users with ability to comment on their experiences with other individuals.

(e) Insurance policy—eBay offers insurance underwritten by Lloyd’s of London at no cost to eBay users.

(f) Escrow services—Items valued at more than $200, eBay recommends escrow services which require for a fee.

(g) Non-payment punishment—First time nonpayment warning, fourth offense is cause for suspension from auction.

(h) Appraisal services—It use a variety of methods to appraise items such as assessment of authenticity and condition and review of what comparable items have sold for in recent months

(i) Item verification—It is a way of confirming the identity and evaluating the condition of an item. Print this post