Thursday, July 2nd, 2009 | Posted by blogadmin

FBI ISSUES WARNING: Beware of internet auction scams

I read a great article written by Arlene Culpepper on internet aution scams and borrowed the content below from her, but you can read the full article here:
http://www.examiner.com/x-2552-New-Orleans-Crime-Examiner~y2009m6d30-Beware-of-internet-auction-scams

The internet auction scam basically works like this. You want to buy a car on ebay and the seller contacts you wanting you to pay him outside of ebay like thru a wire transfer.

The problem is if you don”t use the escrow or ebay buyer protection plan and you wire money outside the system you are not protected and out money.

The FBI stated in a recent press release the number of internet scams has sharply risen in the recent months due to the economy.

Here are a few of the most common aution frauds:

A seller advertises a high-value item on the internet (such as a car or a computer). A scammer contacts the seller to purchase the item, then sends the seller a counterfeit check or money order for an amount greater than the price of the item. The purchaser asks the seller to deposit the payment, deduct the actual sale price, and then return the difference to the purchaser.

Wire transfer schemes start with fraudulent and misleading ads for the sale of high-value items being posted on well known online auction sites. When buyers take the bait, they are directed to wire money to the crooks using a money transfer company. Once the money changes hands, the buyer never hears from them again.

Second chance schemes involve scammers who offer losing bidders of legitimate auctions the opportunity to buy the item(s) they wanted at reduced prices. They usually require that victims send payment through money transfer companies, but then do not follow through on delivery.

In none of these scenarios, do customers receive what they pay for. Individuals are generally behind the scams, but some times there are criminal enterprises behind them. West African scam artists are often behind the overpayment schemes. Romanian crime groups some times prefer the second chance schemes.

The FBI is working diligently to address the problem of internet fraud schemes and they have had some recent success, however schemes still exist and customers should be careful not to make a purchase outside of the website where the auction exists.

What to do if you’ve been victimized. Go to the Internet Crime Complaint Center or the Federal Trade Commission websites and submit a complaint. You can also report incidents to your local police and to auction companies.

TIPS TO AVOID BECOMING A VICTIM OF INTERNET AUCTION FRAUD:

Ask the seller for a phone number and verify it
Beware of buyers who insist on wire transfers as the only form of payment they will accept
For big ticket items, always use a legitimate online escrow service that will hold the payment until you receive what you ordered
If you receive an overpayment as a seller, do not cash it, but instead ask for the exact purchase price
Do not ever give out your social security or driver’s license number. Legitimate sellers have no use for this information and will never ask for it
Be skeptical if the price sounds too low

Remember, you can find some great deals online, but as with anything else, you will want to be careful not to fall prey to a scam.

For great tips on purchasing vehicles, please visit the webpage of the New Orleans Car Shopping Examiner. He offers some great tips to follow when purchasing a vehicle.

Short URL: http://www.askcarexpert.com/?p=428

Posted by blogadmin on Jul 2 2009. Filed under Car Scams. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

FBI ISSUES WARNING: Beware of internet auction scams

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