Buying new or used merchandise via online auction is becoming popular, and there are many reputable companies conducting these auctions. However, as with any enterprise, disreputable companies or individuals are also out there. Being educated about what to look for can save you from being taken.

Online Auction Fraud Prevention -

• Understand as much as possible about how the auction works, what your obligations are as a buyer and what the seller's obligations are before you bid.
• Find out what actions the website / company takes if a problem occurs and consider insuring the transaction and shipment.
• Learn as much as possible about the seller, especially if the only information you have is an e-mail address. If it is a business, checkthe Better Business Bureau where the seller / business is located.
• Examine the feedback on the seller.
• Determine what method of payment the seller is asking from the buyer and where he / she is asking to send payment.
• If a problem occurs with the auction transaction, it could be much more difficult to resolve if the seller is located outside the United States because of the difference in laws from country to country.
• Ask the seller about when delivery can be expected and if there is a problem with the merchandise, is it covered by a warranty or can you exchange it.
• Find out if shipping and delivery are included in the auction price or are additional costs, so there are no unexpected additional charges.
• There should be no reason to give out your social security number or driver's license number to the seller.