MYSTERY AUCTION BUYER SCAMS What to do about Fake Bids and Non-Paying Bidders!

Lately, Mystery Auctions have been experiencing a number of buyers abusing the eBay system by bidding astronomical amounts on auctions which are worth much less in actual value. Some of the participants have even taken these auctions into the millions only to retract their bids once the auction nears the last 12 hours. This by Federal Trade Commission standards and eBay rules is illegal. Not only that, the extreme stress caused by the outrageous amount bid on the item is very difficult for the seller to manage. The seller doesn't know which of these bids are legitimate and which to cancel.

There are ways to combat these fake bidders which are really classified as "shill bids" or "bid shields." Through several auctions of my own, I have learned how to collect evidence against these internet fraud offenders and also how to bring them to justice. In this guide, I will show you how to gather information and what to do with it once it is collected.

Getting Started

When you believe your auction is getting high bids and they seem as if they aren't real, first check the buyer by looking at the bid history (see my guide MYSTERY BOX BONUS $$ SCAMS - How to Spot a FAKE BIDDER!). This determines what type of bidder you have.

GET IT IN PRINT

Next, you'll want to go to your auction's bid history and take a printed out version of it. This gives you proof of what the bids are and when they are placed. Although it is true you can get this at the end of the auction as well, seeing the bids and bidder's list in the order in which they bid is clear hard evidence of the amount and times they bid. You can compare these later with the closing auction results.

Once you've tracked each person's bid, next you can go to the Advanced Search link under the Search bar in the upper right hand corner of any eBay page and you'll find another search area. In this search area, look at the left hand column and click the link Items By Bidder. Put in the buyer's name and check the boxes with Include completed listings and Even if not the high bidder.

When this information comes up, you'll be able to go to each of the auctions these people are bidding on and print out exactly what they bid on someone else's auction. This information will let you know if they've won anything or if they are just bidding on bonus money at the even amounts and also if they are habitual retractors and what they've retracted on. Gathering this information for later use will be very handy when you need to take them to court and collect or when reporting them to the Federal Trade Commission, the FBI and also eBay.

BEFORE CLOSING THE SALE

Before completing the sale, if you become alarmed at any buyer's history or the fact they are bidding on your item and others you need to report them to eBay immediately. I like to go through Live Chat on the Home Page of eBay for several reasons. First, I have a record of exactly who I am reporting and how eBay wants me to report it. I have a transcript sent to my email after every conversation.  And later, when I need the information, I can let them know I did report this person prior to the close of this auction and asked eBay to check the situation. I've had eBay cancel one buyer's bid on my item one time only.

FINAL 12 HOURS

Once the sale nears the final 12 hours is when these people begin their retractions. Whoever the high bidder is, they will retract and then it goes from there. In the remaining 12 hours, bidders are not supposed to retract bids, however, the fake bidders have found a way around this. In the last 4 hours of my auction, several bidders were allowed to retract stating "Cannot contact seller." This of course was ridiculous because it only happened after they had become the high bidder and there was no record in My Messages in My eBay from any of these high bidders. Ebay did allow these people to retract their bids - once they are retracted during the final time, eBay will not reinstate that bid and takes the word of the buyer.

TIME FOR BILLING AND BOMBARDMENT

Upon auction close, it will be time to bill your winning bidder. At this time, if you have bonus money you will be bombarded with these fakers emailing you excited messages on where you can send their PayPal payment with their bonus money. They are not interested in winning, just thier bonus money. When this happens keep their email in My Messages and any responses you make. I always add, "The winning buyer has not paid yet and should they not pay, are you prepared to win at the $50,000 (or whatever the figure) you bid?" There has never been one person who has responded to this message with a "Yes, I'd love to have it if they don't pay. Please let me know so I can send the money right over!"

Instead, these people start sending nasty messages to you about YOU being a scam and your auction is the worst on eBay. Just remember, these people are only liars and thieves and therefore their word is no good. Do not let their threats and idle chatter rattle you. Collect the emails and inform them you will be turning them in to the authorities and are in the process of collection proceedings due to the fact the winning bidder has not paid. This will deter them from emailing you further unless they continue to harass you. Remember, every move you make you are recording for evidence later.

Next, you'll have to file the Unpaid Item Strike if they don't pay and go through the process of getting the fee removed from your bill. This could take as long as 15 days. You've got to wait 8 just for the person to pay. In the meantime, you can still collect your evidence.

Ebay and Trust and Safety Harbor

Basically, you're on your own. The legally binding contract which eBay states in the User Agreement and is also stated right before they place the bid is not enforced by eBay. There is no provision for enforcement. However, I do suggest you file every piece of paper you can with eBay and Trust and Safety Harbor. Be prepared for the Mystery Auction fraudulent bidder ring to be fierce and try to scare you. They will but remember, talk is cheap and they can prove it by backing up their bids and answering a few questions.

Therefore, although eBay says they are concerned - do not expect a whole lot of action. Just a lot of records for your evidence.

Attorneys and Internet Collection Agencies

One suggestion to put in your auctions and I beleive is a great idea and I will do from this point on is to put in your auction information is you will be using a collection service to collect any unpaid debt by winning bidders who refuse to pay within the time frame given by eBay. Just look at any statement which has a collections phase to their contract and use that as your legal recourse on collections. I am going to start putting this in all my auctions from this time forward.  This should deter those bidders as well.

Finding an attorney who is familiar with internet law is like trying to find a needle in a haystack. But after two days of diligent searching I finally went to LawFind.com and found a lawyer in my area willing to take the collection and the Breach of Contract case on a contingent basis. It is important to note, you will have to file suit in the state, county, city in which you live (at the time of this writing) NOT in the state of the offender. Once you win, you'll have to file something in their state as well.

There are some companies out there who will do internet collections but usually you have to belong to a service such as Reliabid. I have never worked with Reliabid but I did contact them and they do work with a collection agency which is in Internet Collections therefore, if you can find a company who will do this for you, you'll be better off letting them handle the situation. Look in Google under Internet Collection agencies for a list.

You will furthermore want to contact the Federal Trade Commission and the FBI with your complaint. You'll also contact your Attorney General's office and any law enforcement officials in your area with the same complaint and evidence.

Make sure you email your winning Non-Paying Bidder and the fake bidders who are emailing you that you are reporting them and starting collection and prosecution proceedings!

SIMPLE YET COMPLICATED

According to the attorneys I've spoken with, they tell me it is a matter of simple contract law which means they bid, you accepted -done deal. People don't usually bid on things they can't afford but when it does, you'll be ready with your evidence and the law on your side.

Hopefully, together we can rid eBay of these fraudulent bidders and begin cleaning up the fun and excitement of legitimate Mystery Auctions.