The top 10 Scams on eBay1.

1. Counterfieting

Have you read official eBay press releases about how fraudulent sellers represent just a tiny fraction of all transactions? Have you also read comments to the effect that it’s impossible to know just how many sellers on eBay are chomping at the bit to take you to the cleaners? Well, consider this. A recent report by the research group, IDC, shows that more than 50% of all Microsoft software sold on eBay globally is fake, and it has become such a problem that Microsoft have launched a global campaign to track down the culprits. That’s right, more than 50%! Well, in my humble opinion, 50% is rather bigger than “a tiny fraction”. Everything from razor blades to archaeological artefacts are faked and offered to gullible buyers   Some fakes are almost comical in their attempts to deceive, but others are much harder to spot. The other day, an eBayer posted a message on the chat boards, asking if it was OK to list “replica” **** trainers. Unbelievable! But it’s a measure of the fact that some casual sellers do not realise that selling counterfeit items on eBay is naughty. At the other end of the scale, there are sellers whose activities are funding major organised crime. We are truly in a global market, where sellers’ perceptions of legitimacy vary from country to country, and it’s a shame we have to treat our on-line experiences with some circumspection. I won’t insult your intelligence, you already know what to do, but remember that sellers can use special software that can create multiple eBay accounts, and the consequent interlinked positive feedbacks, faster than you could possibly imagine, so don’t rely on sellers’ feedback history. Have a look at my guide to feedback scamming, and how to avoid becoming a victim. And if you get the chance, have a look at my guide on how to roughly assess the level of fraud going on in the category of your choice, simply by using eBay’s own search tools.

2. ACCOUNT HIJACKING - Here’s an example of how they do it posted on a trade forum recently.

Sorry this is a fairly lengthy post but I am in a bit of a state at the moment as my ebay account has been “hijacked” and would really like some help. I only discovered today that my account has been taken over due to some emails from ebay, such as,”Dear xxxxxxxx,It appears that your eBay password has become known to a third party.It is possible that an unauthorised third party found out your password using a “spoof” email. These are fraudulent emails made to appear as if they were sent by eBay. Spoof emails attempt to collect your password or other personal information, usually by asking you to click on a link in the email and sign into a spoof website.To protect the security of your eBay account, we have reset your eBay password and Secret Question (password hint question). As a result, you won’t be able to sign into your eBay account with your current password. Please follow the instructions in this email to restore access to your eBay account securely.

Here’s what you should do now:1) Choose a new eBay password
2) Change your Secret Question
3) Update your information in Turbo Lister
4) Protect against spoof emails”etc….so I signed into my account and straight away am faced with the following,“Due to recent activity, including possible unauthorised listings placed on your account, we have temporarily suspended activity on your account in order to allow us to investigate this matter further. If you believe that this action may have been taken in error, or, if you feel that your account may have been tampered with, please respond to this message so that we can provide additional information and work with you to resolve this issue.After responding to the message, we ask that you allow at least 72 hours for the case to be investigated. Emailing us before that time will result in delays. We apologise in advance for any inconvenience this may cause you and we would like to thank you for your cooperation as we review this matter.If you have received this notice and you are not the authorised account holder, please be aware that it is a violation of eBay policy to represent oneself as another eBay user. Such action may also be in violation of local, national, and/or international law. eBay is committed to assist law enforcement with any inquires related to attempts to misappropriate personal information with the intent to commit fraud or theft. Information will be provided at the request of law enforcement agencies to ensure that perpetrators are prosecuted to the fullest extent of the law.Best Wishes,eBay Trust and Safety”I know for a fact that I haven’t signed in using emails as I always delete ebay emails because I’ve only ever purchased one item off ebay and think that it is a rubbish waste of time site!Anyway in my sent messages bit in “my ebay” there are 3 pages full of the same message sent to loads of different users and all of these messages say,“dear friend, we are an electron export company. we mainly sell mobile,lcd tv,gps,ps3,gps ,ipod, digital camera ,laptop and so on.
all what we sell come with 1 year official guarantee,and we sell at competitive price if you order in bulk.if you are interest,please contact us
website:www.dvele.com
Email:dvele-1@hotmail.com
Msn:dvele-3@hotmail.com”I have looked it up and it appears to be a chinese scam!I have changed all my security details, emailed ebay back explaining that I wasn’t behind this and could they close the account all together, I’ve closed my Paypal account as a safety measure and I honestly don’t know what else to do and am so angry at the ******’s!Is there anywhere I can report this site for doing this?
Oh and also is there a way I can contact the users that received messages from my account just to apologise as a few wrote back having a go because they received over 15 messages?!

3. Shill Bidding
In eBay’s own words, “Shill bidding is bidding that artificially increases an item’s price or apparent desirability”, and it’s just as common on eBay as it is in any motor auction room up and down the country. But just because that dodgy geezer in the sheepskin coat, upping the interest on that Mondeo, is all part of the “charm”, it doesn’t mean it’s OK on eBay. In fact, it’s a criminal offence and there have been several prosecutions, here in the UK. Not only that, but eBay’s rules prevent you bidding on items being sold by your friends, family and (take note) your work colleagues! The only exceptions are purchases made using the “Buy it Now” option or fixed price listings. So how can you recognise if you’re being taken to the cleaners? Well, this is one of the easiest frauds to carry out, so many shill bidders are going to leave some clues for you. Check the number of bid retractions a bidder has - we can all make mistakes, but could we really enter the “wrong amount” over and over again? See if the user IDs are in the same format, or look similar in more obscure ways. Look out for sellers who immediately relist an item - wouldn’t you try to communicate with a non-paying bidder first, instead of arbitrarily relisting straight away? Although it’s easy to manipulate, have a look at the location given by the IDs concerned, and remember that eBay’s “distance from seller” feature can be used to weed out those sellers who deliberately enter the wrong location (see my other guides for details of how this feature can be used to your advantage). Does the pattern of bids look right? Shill bidding could well increase dramatically over the next few months, as an unfortunate side effect of eBay’s new policy of hiding bidders’ IDs once bidding exceeds £100, so be extra careful and scrutinise the bidder history details that now appear in the new pop-up windows.

4. Fee Dodging and Postage Inflation 

Ever bid for an item and discovered an inflated postage charge? Well, so have I, even as a seasoned eBayer who should have checked first. If the seller is simply trying to avoid eBay fees, rather than conning you, then that’s something between you (and your ability to assess the total cost of the item including shipping), the seller (and their ability to to assess how close they can push it before someone reports them) and eBay (and their ability to assess what they need to do to avoid any more adverse publicity). If the seller is trying to con you, then they will try to hide their shipping charges in the small print. If you haven’t done it already, change your customised settings so that a postage column appears in all your searches, and allow yourself some investigative time for those impulse buys. 

5. The Second Chance Scam 

A bidder just gets pipped at the post, and ends up as the second highest bidder when the auction ends.  A few days later the second highest bidder receives an email, ostensibly from the seller, saying that the original highest bidder has declined to pay and that the item is available if payment is sent. The email looks genuine and the buyer may not know much about how  second chance offers work. With the increased awareness of other scams on eBay, the success rate for pulling off this type of fraud is much higher than it used to be. It has become such a problem that many experienced sellers take control of the situation by highlighting in their listings the fact that no second chance offers are made, and that the bidder should report any offer received to eBay. Always ascertain whether the second chance offer you have received is genuine, by contacting the buyer first, before parting with your hard earned cash. Ebay now recognise what’s going on, and have introduced a policy whereby bidders’ IDs are hidden on all items selling for over £100. However, you should still be careful and never ever respond to emails unless you’re absolutely certain of it’s origin. 

6. Don’t get Escrowed ! 

For this one I’m going to send you to another site to have a look at the now well known Powerbook Escrow Scam. It make for some very entertaining reading. 

7. Advertised Elsewhere 

Have you seen those listings, where the seller says, “this item is advertised elsewhere, so I reserve the right to withdraw this auction at any time”? Well, this may be a genuine account of the situation, but what if the seller plans to withdraw it if the bidding has stopped far short of expectations? Exactly, and it could well be a con. If you really want the item then ask the seller to substantiate the claim, or move on. Nothing is more frustrating than finding the item you have been bidding on removed, because the seller is using the “advertised elsewhere”, and you will be potentially tied in to the bidding on a bogus auction when you could be bidding elsewhere. This has become such a problem that many sellers are highlighting the fact that their item is “NOT advertised elsewhere” as a selling feature in it’s own right. A quick question to the seller like this ‘ Could you please let me know where else it is advertised , it may be easier/ cheaper to buy it through there…’ If you don’t get an answer just move on. 

8. Not as described 

How many times have you seen the phrase “I’m not an expert” in sellers’ descriptions. Perhaps I’m being harsh here, but if you follow the feedback trails to these sellers you will often find comments to the effect that the item was not without fault. Sellers will feign ignorance to avoid declaring faults, and it’s yet another con. Be prepared to ask questions if you anticipate that the seller’s perception of an item’s condition will differ from your own, but also be aware that some people will be downright dishonest with their descriptions.  Try and get the seller to be more specific, if they are using vague terms such as “great”, “lovely” or “fine”, and remember that many buyers have inadvertently “won” an empty box and had no redress, simply because the seller has been clever with the wording of their listing. Know your rights, and remember that if the seller is selling for the purpose of making a profit then they are running a business in the eyes of the law. 

9. Chargebacks 

Sellers can find themselves out of pocket if they’re not careful. Buyers can buy items via Paypal, claim that the item was never received, and receive a Paypal refund. The seller is only protected if they have shipped to a confirmed address using a trackable service. Canny buyers will target sellers who just ship via untracked services. Ever received a parcel that you unexpectedly had to sign for? Well, it’s highly likely that the seller paid the extra for recorded delivery simply because they were worried about being scammed, either with a chargeback or with a straightforward “I never received it” claim. For those sellers who are considering selling on eBay Express, you need to be aware that eBay require you to be willing to ship to unconfirmed addresses using Paypal, leaving yourself open to potential fraud, and a lot of sellers are uneasy about it. Sellers should scrutinise the buyer’s feedback carefully, to see if there is any previous evidence of chargeback activity, before shipping high value items. 

10. THE UK BUYER WHO WANTS YOU TO SHIP TO HIS RELATIVE IN *******

 Count the stars and guess the country. That’s right - got it in one! Such a common scam, that your auction for that mobile phone is quite likely to be targeted. The buyer claims to be in the UK, but wants the item to shipped to “you know where”. Various methods are employed to try to get you to ship your item before you receive the payment. If you watch the available documentary footage you will see enforcement agencies lucky to escape with their lives when raiding internet cafes to make arrests. This form of scamming is very big business. You can protect yourself to a certain extent by setting up your preferences so that your item can only be bid on by UK based sellers, an immediate Paypal payment is required (for Buy it Now items), by selecting Paypal as the only payment method allowed and, finally, making sure you never ever ship an item before you receive payment, no matter how much money is being offered. 

Do you know any other scams? Why not make your own contribution.