Retail and Auction Fraud

Definition

This is a type of fraud when you pay for something, but instead of getting the item that you payed for, you instead get an item significantly worse then what you payed for.

Example

Out of Country Technique

The seller posts the auction as if he resides in the United States, then responds to victims with a congratulatory email stating he is outside the U.S for business reasons or a family emergency. After this the scammer requests that the funds are to be transferred to another individual or themselves by wire. If the money is wired it is virtually untraceable and unrecoverable.

Prevent It!

To prevent auction fraud it is always a good idea to check the website for ratings of the auctioneer. Also sites like eBay and PayPal have their own security measures for you to follow to prevent auction fraud.

Summarization