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

E-auction is getting more and more famous, consumer like to buy from e-auction is due to the price is lower comparing to market, easier to find the product and items they looking for by just using the search engine, and might due to more convenient and time saving.

Unfortunately, people start to misuse the e-auction. Type of fraud happens due to consumer not alert enough. The most common fraud is that buyer pay money and didn’t receive goods or seller sent the good but never receive money.

After e-auction company realize frauds are invading them, they have come up several methods to prevent frauds to bring up consumer’s confidence. A few methods that been undertaken and point out to the consumers are feedback forums, escrow service & physical inspection.

Feedback forums is actually an effective prevention where users and consumers can actually voice out the problem they facing and give a precaution to other user to take note such thing happen. For instant in Lelong.com.my, they have 1 topic on “Fraud Alert” where users report any fraud they detected to make precautions.

Escrow service, is a legal arrangement where the item is deposited into safekeeping under a trust party and once the condition (money paid) is met the item only will be send. In Lelong.com.my, they have their own escrow service where they call it SafeTrade.

Physical inspection normally only apply when the seller and the buyer are in the same location and it will be convenient for them to arrange for the inspection where make sure the item is in good condition.

Therefore users and consumers should always take precautions and prevent any frauds occurs on e-auction. As eldest always mention, taking precaution is better than cure, and so you should always remember it.

Further informations:

1. Lelong.com.my
2. Ec Lessons
3. Wikipedia

-William Hong Weei Loon-