Classified ads and auctions

Online auctions continue to increase in popularity as consumers participate from computers and mobile phones. These sites are a great way to pick up good deals and unusual items, but it is critical that you stay alert and cautious.

Auction fraud is the most reported form of online fraud. Auction schemes tempt victims to send money for promised items, but then deliver nothing or an item far less valuable than the item that was promised. Another ploy is for the criminal to purchase an item at auction with a check for a larger amount than the item’s value and ask the seller to reimburse the difference. It is only after you’ve shipped the goods and refunded the ‘difference’ that you discover the check bounced and the criminal got away with your property AND your cash.

Be particularly careful with international sellers. If something goes wrong in one of these transactions there is very little that can be done to help you get your funds or goods back.

Classified ads are another useful tool for selling and purchasing items if you do so carefully. Before buying or selling anything on a classified site read the site’s Terms and Conditions, their abuse reporting procedures, and any safety tips the site provides.

When creating an account on a classified ad site, create a safe profile that does not include any identifying information. Use a separate e-mail account. Many sites provide one for you, but if the site you choose to use does not, create a new e-mail account for yourself for classified transactions. Don’t ever include a personal phone number in your profile or ad.

Safety tips for online classified site sellers

When selling an item through an online classified site, follow this safety advice:

1. When describing the item for sale, limit the personal information you give. For example, don’t include in photos identifiers such as a house number, your child, other possessions, or identifying information that isn’t relevant to the item being sold.

2. Only give a general location, not a specific address, in your ad.

3. Only deal with local people who you can meet face to face. The further away a buyer or seller is, the higher your risk of fraud.

4. Never accept payment in the form of a cashiers check, wire transfer, money order, money transfers, or through escrow services. You want cash at the time of the transaction or through a reputable payment service. Check out the safety and privacy of any payment service before you use it.

5. If someone offers to pay more than the asking price, she is committing fraud. If someone asks for your checking account information so he can transfer funds, the transaction is not legitimate.

6. Never send an item before it has been paid for.

7. Scammers often use hard-luck stories to get you to give them the item for free. No matter how desperate the story sounds, it is likely to be a scam.

8. Unless the item is too big to easily transport, always bring the item to a public place rather than delivering it to the buyer at your home. Do not invite trouble to your doorstep.

9. Never meet buyers alone. Always have someone with you, even if you are meeting the buyer in a public place.

10. If you are selling a device such as an iPod or PDA through a classified or auction site, consider what content is on the device. Strip off all personal information and make sure that it doesn’t contain copyrighted content that is not yours to sell.

Safety tips for online classified site buyers

Advice for buyers is similar to that for sellers, but from a buyer’s unique perspective:

1. Only deal with local people who you can meet face to face. The further away a buyer or seller is, the higher your risk of fraud.

2. Research the item carefully before purchasing and be wary if the asking price is unrealistically low.

3. Check the item carefully before releasing payment. For example, if it’s electronic plug it in or turn it on to be sure it works.

4. The best way to pay for items is with cash or with a secure payment service. If the seller asks you to pay more, and will offer to give you a check for the difference, say NO; it’s a scam. Do not pay with checks as they show your address, full name, and sometimes phone number along with your bank account information.

5. Avoid going to someone’s house to view an item unless it is too large to transport. Ask to meet in a busy public place and always bring someone with you.

6. Report any abuse to the classified service provider, and law enforcement if necessary.

7. If you are the victim of a scam report it though the Internet Crime Complaint Center.