greenfreak
New Member
Scam artists prowl online auction sites
WASHINGTON (Reuters) --Teresa Smith discovered Internet auctions in a big way about two years ago, selling $800,000 worth of Apple Macintosh computers through sites such as eBay and AuctionWorks.
Like thousands of other small-time entrepreneurs, Smith found that online auction sites could expand her reach and connect her with customers from Hawaii to Switzerland.
Soon she was hiring employees and tooling around Boston in a new Ford Mustang convertible.
While Smith certainly cashed her customers' checks, unfortunately, she rarely bothered to send out the computers they had paid for.
Ripping off customers
Smith admitted in court in November that she had ripped off 300 customers in what law-enforcement authorities estimate may be the biggest case of auction fraud to date.
While few scam artists operate on Smith's scale, they have for years turned to auction sites like eBay and Yahoo to sell cars they don't own, computers that don't exist and diamond rings without any diamonds.
Reports of auction fraud have skyrocketed from 106 in 1997 to 25,000 in 2001, according to the Federal Trade Commission, far outpacing other common online scams.
Scam artists commonly sell big-ticket, relatively generic items like computers or automobiles, advertising them with pictures downloaded from elsewhere on the Internet, according to Delores Thompson, an FTC staff attorney who focuses on auction fraud.
"They come in, they hit quick, and they disappear," she said.
More at CNN
Anyone buy or sell on Ebay? I've always been afraid to, especially when I hear about things like this. There really is no way to protect yourself--even Pay Pal itself doesn't guarantee any protection. I guess paying by credit card is better for the fraud protection but I don't want strangers having my credit card number.