 | Research the auction site.
If you've never used an online auction site, read the site's help file before you place a bid. Also, make sure you understand the site's privacy statement and its user agreement. For example, once you place a bid, most auction sites will not let you back out of the deal if you win the item. Check for insurances and guarantees. Some sites will reimburse your money if you've been scammed. |
 | Research the seller.
Ask for a phone number and verify it. Be wary of sellers who ask that you send payment to a P.O. Box, instead of a physical address. Many auction sites track a seller's history and encourage feedback from buyers about their experiences with sellers. Ask questions before you deal with sellers with no feedback or no sales history. |
 | Research the item.
Whether you bid on collectibles or computers, it pays to know a little about the item. Find an expert on that particular item and ask if he or she can authenticate it. Compare prices on other auctions for similar items or even at online stores. Ask questions if the price at the auction is considerably lower than what you can find elsewhere. |
 | Watch for items with shipping dates that exceed 20 days after receipt of payment.
A delayed shipping date could be a bad sign. Many auction sites require that sellers ship items within a certain number of days after payment. Check the site's user agreement to find out if the seller is within that time frame. If the auction doesn't specify an estimated shipping time, contact the seller. If the seller doesn't give you a straight answer, you'd be wise to bid elsewhere.
Hint: Before you bid, ask sellers if they plan to ship the item using a parcel tracking service. If your shipment is delayed, you can contact the seller who should be able to tell you exactly when the item is due to arrive or give you the shipment tracking information. |
 | Be wary of deals that sound too good to be true, especially around the holidays.
An auction with a price that starts much lower than other auctions of similar items may indicate a lower quality product, or it could mean the item was stolen. |
 | Never be lured off the auction site with the promise of a better deal.
You might receive e-mail messages from strangers who offer items that are similar to those you've recently bid on, but at a lower price. Some scammers use this technique to entice people away from trusted auction sites. Know that when you participate outside of the site, you are no longer protected by the site's privacy and security policies. |
 | Never pay with cash or a money order.
Also be wary of requests for bank or wire transfers and sellers who want to be paid in foreign currencies. |
 | Question sellers who ask you to send payment to an address that is different from the one in the auction.
Some fraudulent sellers will change the payment address or other details after you've won the bid. Always question these changes, and if the sellers won't budge, report them to the auction service. |
 | Consider using a third-party payment service.
Third-party payment services allow you to transfer money into an online account and make payments from that account so you don’t have to expose your actual credit card or bank account information to the seller. For big ticket items, you can use an online escrow service to act as a go-between. The escrow service holds your money until you receive and approve of the seller's item. The terms of escrow should be agreed upon by both the buyer and the seller.
Hint: Be cautious of sellers who will not be flexible on payment options. |
 | Never respond to unsolicited requests to update your account information.
These e-mails might be scams used to steal your identity. Most legitimate companies will never send you unsolicited e-mail or instant message requests for your passwords or other personal information. If you do receive a request like this and you think it might be legitimate, contact the company directly (not through the message you received) and ask for confirmation. |
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