Things to take note to prevent e-auction fraud when a consumer participating in an e-auction.

According to the National Consumers League, all of the e-commerce activities conducted over the Internet, fraud is most prevalent and serious in e-auctions. There are many type of e-auction fraud around the Internet, such as Bit Shielding (use of phantom bidders to bid at a very high price when an auction begins), Shilling (placing false bids on auction items to artificially jack up the bidding price) and etc.

How to prevent e-action fraud when a consumer participating in an e-auction?

The following are antifraud measures for consumer participating to the e-auction.
1. Examine the insurance policy provide by the e-auction company. The function of Insurance is to protect the buyer, seller and service provides would not suffer any financial loss when conducting auction.
2. Some of the e-auction has provided authentication service. The product authentication is a way of determining whether an item is real and described appropriately. This service can increase the reality and validity of the product to make sure it is no come from illegal.
3. Escrow service is a service that protects the buyer and seller. This service is through the third party to make a double security protection. The buyer pays to the escrow service, which verifies the payment and alerts the seller when everything checks out. After that, the seller only ships the goods to the buyer. After am agree-upon inspection period the buyer notifies the service, which then sends a check to the seller.
4. An e-auction have provide for a physical inspection can eliminate many problem. This is especially true for collectors’ item.

Nowadays, fraud is very serious and difficult to prevent especially in the simulation world—Internet. When we participating the e-auction, we cant see the other face and dun know who are them, although it have many method for us to prevent, we still want to take care the process.