Things to Take Note to Prevent E-Auction Fraud when a Consumer Participating in an E-Auction

E-auction, also called reverse auction is an electronic “reverse” auction where suppliers use internet-based software to bid against each other online and in real time against a published specification. E-auction can be based on price alone or can use transformational bidding to an account for other criteria such as quality and delivery.

E-Procurement Scotland (ePS) provides access to electronic auction (E-Auction) functionally through the E-Sourcing Scotland System. This system is an element of the “core” ePS service and is available to any buying organization participating in the programmed.

There are many types of E-Auction fraud. For example, bid shielding, fake photos and misleading description, improper grading technique, selling reproductions, failure to pay, inflated shipping and handling cost, failure to ship merchandise, switch and return and also loss and damage claims.

The largest Internet auctioneer, eBay has introduced several measures in an effort to reduce the fraud.

1. Feedback forum

It set up a forum to allow the buyers and sellers to build up their online trading reputations. It also provides users with the ability to comment on their experiences with others. All the information and history of any sellers could be acquired through the forum.

2. Escrow Service

Is a licensed and regulated company acted as an independent third party. Buyer mails the payment to escrow services which verifies the payment and alerts the seller when everything checks out.

3. User Verification System

Higher level of verification can be qualify by asked the bidders to offering their IC number, driver’s license number and also date of birth. The voluntary programs encourage users to supply information for online verification.

4. Authentication Service

It is to determine whether an item is genuine and described appropriately. It also very difficult to perform because of their training and experience, experts can detect counterfeits based on subtle detail.

5. Nonpayment Punishment

To help protect sellers, 1^st time nonpayment results in a friendly warning. A sterner warning is issued for a 2^nd time offence, a 30 days suspension for a 3^rd offence, and indefinite suspension for a 4^th offence.