I have written about electronic crooks preying on eBay members before. But it is an important issue (and expensive for those who fall victim to it). Also, a couple of additional scams have become "popular" recently.  So let's take another look, shall we?

As a preview, here are the scams I will be highlighting:

• Bogus "Account Notification"
• Fraudulent Money Orders
• Phony "2nd Chance Offers"
• Expensive Items for Quick Sale at Really Low Prices
• Bogus "Escrow Account" emails
• Spoofed PayPal "you paid for this" emails

INTRODUCTION

To see how this applies to the virtual world, let's start with the real world.  A guy shows up on your doorstep.  It's the middle of summer, and he's wearing a full overcoat, gloves, and a ski mask. He says,

"I'm from your bank. We don't know your name, but we think that somebody might be trying to steal your money. So, if you'll give it all to me, I'll protect it for you."

Do you give a total stranger your money based on this?

Of course not!

And yet, every day, people give their money and information to electronic crooks who are - virtually - acting in the same manner.

eBay is a great venue to buy and sell items, whether the other party is next door or around the world.  But, because of its success, it also attracts crooks. We're not talking about potential purchasing disagreements or misunderstandings. We are talking flat-out theft, where the electronic crooks - eCrooks - plan to steal what they can.

Does this worry you? It should. But it shouldn't stop you from enjoying the benefits of a worldwide marketplace. With some basic knowledge and some basic caution, you should be able to evade these thieves, and maybe stop some of them in the process.

WHAT SCAMS MAY COME

Let's take a look at some of the most common scams. In these situations, I will highlight:

• The Scam - what you can expect to see
• The Kicker - The extra boost that the thief uses to convince you to fall for the scam
• Warning Lights - Things to make you stop and think about the scam (and you don't have to see all of the warning lights to know you have a scam)
• Handling - How to report the scam while avoiding becoming a victim

Bogus "Account Notification"

• The Scam:
1. You receive an official-looking email warning you that your account is locked or in question.
2. You are told to log in by clicking a link inside the email.
3. You click the link and the web page will appear authentic.
4. In reality, you are redirected to a web page that mimics eBay or PayPal, but only exists to grab the information that you enter.
5. If you enter your information, you may get messages stalling for time, such as "Temporary Down" or an extra page asking you to enter additional financial information.
6. Whatever the case, the thief now has your account name and password, and quickly cleans you out.
• The Kicker - You are threatened that, if you do not log on quickly, your account will be deleted.
• Warning Lights - Receiving this particular email at all is the biggest warning.
• Handling:
• Don't follow the link. If you really think your account is at risk, log in directly through the website. 99.999% of the time you will find that nothing is wrong.
• If you still have concerns about the account, Contact eBay or PayPal while you are logged in.
• When you see that the email is bogus, forward it to the "spoof" userid of the domain where you have your account. eBay provides information about email spoofs.

Fraudulent Money Orders

• The Scam:
1. Someone states they want to buy your item (usually an expensive one), and will send you a money order immediately.
2. They try to get you to ship the item as soon as you get the money order, before you have a chance to cash it.
3. You ship the item, only to find out that the money order is counterfeit (and you may not find out for several days, if you deposit it in a bank account).
• The Kicker - They may offer to write the money order for MORE than your asking price, saying that you can keep part of the extra money and return part to them.
• Warning Lights:
• The buyer does not want you to have the time to verify the money order is bogus.
• Why are they in a rush to pay MORE than you want?
• They want cash back (okay, here the eCrook is getting extra greedy).
• Handling:
• Do not mail money with a purchase (unless you really are in the business of buying and selling currency).
• Do not ship an item until you have verified the payment.
• A regular money order may take several days to clear (and you might try calling the toll-free number of the company which is stated as the issuer).
• For a USPS Postal Money Order, you can cash it immediately at your local Post Office.
• If you think the money order might be fraudulent, explain that to the clerks when you cash it (the Postal Service can tell you directly if it is counterfeit or stolen).
• If it is fraudulent, work with the authorities to provide information on the crook that sent it.
• If it was mailed to you - even if it was not from the US Postal Service - you can also contact the Postal Inspectors.

Phony "2nd Chance Offers"

• The Scam:
1. You bid on an item from a legitimate seller, but don't win.
2. You get an email claiming to be from the seller, giving you a second chance offer (Note: valid 2nd Chance Offers are a legitimate eBay sales tool).
3. You are told to pay directly to the "seller" at an address or wire transfer account they provide.
4. After never receiving the item, you email asking what's up, and get no response.
5. When you contact the seller through eBay, you find out that the real seller never sent you an offer.
• The Kicker - You have to act fast to accept the item at your low price, or you lose out on the deal.
• Warning Lights:
• Your bid is way below the winning bid.
• The email starts with "Message from eBay member" (legitimate offers are directly from eBay).
• You are told to complete the deal "outside of eBay."
• If you check your My eBay account, the offer is not listed.
• The seller refuses to accept PayPal.
• Note that this is not a guarantee of fraud; some people just don't like PayPal (acceptance of a credit card through other respected services is a legitimate option).
• But, since PayPal has a way of tracking the money flow to bank accounts, eCrooks do their best to avoid it.
• Handling:
• Understand eBay's Second Chance Offer Program (including how to recognize legitimate offers).
• Use secure payment methods to pay for expensive items.
• Don't buy eBay items "outside of eBay."

Expensive Items for Quick Sale at Really Low Prices

• The Scam:
1. You see an expensive item at a ridiculously cheap price (like that brand new laptop computer that sells for $5,000, and the seller is only asking $500).
2. You buy the item and send the money (the seller doesn't accept PayPal).
3. After a week you ask the seller where it is, and he blames it on the mail.
4. After a little more time, the seller is no longer responding, and you find that 100 other users have left negative feedback about a bogus deal.
• The Kicker - This is a "limited time" promotion and you have to act immediately because they will be sold out fast at these outrageous prices.
• Warning Lights:
• Massive discounts on expensive items.
• Sudden change in eBay habits.  Check the last sales of the seller:
• If he got his rating by selling 10 postcards at $1 each, and is now selling plasma televisions ... kind of makes you wonder. 
• Alternately, if he sold 1 beanie baby a week for 5 years, and is now selling digital cameras by the truckload (and the listing has a completely different look and feel), it may be a hijacked account.
• Refusal to accept PayPal.
• Handling:
• If the deal seems bogus (such as a potentially hijacked account), contact eBay.
• Use secure payment methods to pay for expensive items.
• If it just doesn't feel right, then don't buy it.

Bogus "Escrow Account" emails

• The Scam:
• As a seller, you sell an item (usually an expensive one), expecting the buyer to pay.
• You receive an email pretending to be from a respected source (a bank, the Postal Service, etc...).
• The email says that they have your money and will send it to you after you have sent the item.
• Whether or not you mail the item, you never get your money.
• The Kicker - You may be promised more money than you are asking (to "compensate" you for your trouble).
• Warning Lights:
• Your "buyer" is pretending to use an "escrow" service, even though you never offered the option, and the company in question doesn't even offer this service.
• You have no way of verifying the email (the links are bad or the address listed never responds).
• The email wants you to mail the item before you have any possibility of verifying payment.
• Why are they in a rush to pay MORE than you want?
• Handling:
• Never send merchandise that offers a promise of being paid for by a method that you cannot use (Refer to Escrow Services for information on the only escrow service that eBay recommends).
• If you do get such from a legitimate escrow service, always verify the information through the direct website of the service.
• Report bogus emails to the real company that is being spoofed (e.g. if this claims to be from the US Postal Service, report it to the Postal Inspectors).

Spoofed PayPal "you paid for this" emails

• The Scam:
1. You receive an official-looking email stating that you paid a large amount of money for some item that you didn't buy.
2. You are told that, if you actually didn't mean to buy the item, you need cancel the order by clicking a link inside the email.
3. You click the link and the web page will appear authentic.
4. In reality, you are redirected to a web page that mimics eBay or PayPal, but only exists to grab the information that you enter.
5. If you enter your information, you may get messages stalling for time, or you may be told that the order is canceled and you don't need to worry any more.
6. Whatever the case, the thief now has your account name and password, and quickly cleans you out.
• The Kicker - You are warned that, if you do not log on quickly, your account will be charged a great deal of money (for this item you didn't want).
• Warning Lights:
• The email is worded, not to notify you of a shipment, but to encourage you to cancel it (what business ever does that?).
• The email does not include valid order information (name, shipping address, etc...).
• The email wants you to click links, not log on normally.
• You never even considered the item they say you bought.
• Handling:
• Don't follow the link. Log in directly through PayPal and you will verify that you did not buy the item in question.
• If you still have concerns about the account, submit a question to PayPal while you are logged in.
• When you see that the email is bogus, forward it to PayPal's "spoof" userid.

GENERAL SAFETY TIPS

By no means have I covered all of the ways that eCrooks will try to rip you off. But I have hit upon the more common ones.

The warnings and handling information here will help you steer clear of variations of these scams. And, in that vein, here are a few more tips that can help you deal safely on eBay:

• Don't Talk to Strangers - Okay, so you don't know everybody by name on eBay. But that doesn't mean we are strangers. Established eBayers have been buying and selling for years, and new community members enter every day. But, when we communicate, we can do so directly through eBay Messages. This at least ensures that the message is coming from an eBay Member (and, when eCrooks try this, they get busted more quickly).
   
• Enter through the Front Door - If you want to communicate with eBay or PayPal, you can also talk to them directly. Log on to your account from the website address that you typed in by hand. Don't trust links that say you must click there to enter your account. It's worth the few extra keystrokes to ensure you get to the right place. In the rare case you do receive an email from eBay or PayPal, logging in directly to the website will still get you to the real source.
   
• High Prices = Higher Risk - Even eCrooks can't make money stealing pennies. They are more likely to go after expensive items to steal (or, alternately, pretend to sell expensive items to steal your money). The more valuable the item, the more cautious you need to be.
   
• Be Wary Of the Unbelievable - Someone once said, "If it looks too good to be true, it probably is." Unfortunately, that truism is all too valid. You will find great deals here. But, if the deal seems too outrageous, be willing to check it out.
   
• When In Doubt ... Ask - Maybe the deal is real. Maybe the seller really does have a dozen laptops that he needs to sell quickly to take that dream vacation to Tahiti. But sellers and buyers should be willing to communicate. Feel free to Ask the Seller a Question.

Remember, honest eBay sellers want to make honest sales. We can stand up to the scrutiny. Honest buyers want to get the merchandise. We are willing to follow the rules to pay for our purchases. It's the eCrooks that want to snatch your money (or your goods) and run.

A WORD (OR TWO) ABOUT NEW USERS

Sadly, a high proportion of the scams will be attempted by eCrooks pretending to be new users. The reason is obvious: they can only steal under one name briefly before they get caught. So they always have to keep moving.

But that doesn't mean that all new users are eCrooks. Remember, everyone starts out as a new user. So here are a couple of tips that new users can follow to build their own deserved reputation:

• Accept PayPal as a Seller - This is probably the best way to let people know you are not hiding. It is quite easy to sign up to Accept PayPal Payments. You use the respected name of PayPal, and are legally bound to follow through on your sales. No, I do not work for PayPal. But I definitely accept it.
   
• Use a Confirmed PayPal Address as a Buyer - You can also easily obtain your own (free) account to Send PayPal Payments. Have it established as a Confirmed account. Then, when you buy something, you have it shipped to your Confirmed Address. The seller is safe mailing it to you. And you know that you are protected by PayPal's guarantee that the seller will ship as promised.
   
• As an alternative, use USPS Postal Money Orders as a Buyer - This is another payment method that is safe for sellers and offers some recourse to the buyer if the seller doesn't come through. You can buy a USPS Postal Money Order in any U.S. Post Office. The seller can cash them immediately, and thus be confident in shipping out your purchase. 
• Important: If you do send a Postal Money Order, keep the receipt. If it is lost in the mail (which really is a rare occurrence), then you can have it replaced. And, if a seller does cash it and tries to pretend it didn't arrive, you will have proof that the Postal Inspectors can use when pursuing the crook. Again, I prefer PayPal for the safety it offers to the buyer and the seller. But, to know that I can trust shipping to the buyer, a Postal Money Order is the next best thing.
   
• Ask and Answer Questions - If you are uncertain about something (e.g. "How much does shipping cost?"), ask. If you are asked questions (e.g. "Why are you selling this so cheaply?"), answer them honestly.

Most experienced eBayers are willing to work with new eBayers. As I said, we were all new once. By showing that you can be trusted and are someone that is good to deal with, you can quickly become a respected member of the community.

IN CONCLUSION

eBay is a great place to buy and sell. But this marketplace brings out eCrooks trying to prey on the unwary.

By keeping informed and staying sufficiently wary, we can all help maintain this user community as a profitable venture for honest buyers and sellers.

As a great starting point for more information, visit eBay's Security & Resolution Center (especially their section on Avoiding Fraud).