Holiday shoppers looking to purchase a Wii or Playstation3 online should be
weary of auction fraud, according to Symantec.
The scarcity of the two consoles with retailers in the holiday shopping
season is driving gaming enthusiasts to become first time Ebay users. At the
auction site, unwitting consumers may be playing right into the hands of
scammers.
The security firm points to two common methods by which criminals scam eBay
buyers and sellers out of their money. The warning comes as part of Symantec's
monthly home and home office security report.
"Because so many people are after these hot items, the auction prices can get
quite high," said Symantec researcher Mark Fossi. "This is where the scammer
steps in."
According to Fossi, scammers will often use a provision with many auction
sites that allows the seller to award an item to the second-highest bidder when
the buyer with the highest bid doesn't pay.
The scammer will pose as the seller and tell the second-highest bidder on a
recently closed auction that the winner was unable to pay and offer to "sell"
the item to that person
"Naturally," said Fossi, "once you send the scammer your money, you never
receive the item."
Buyers aren't the only people that could be subject to scams this holiday
season. The report also cautions that online sellers could fall victim to
criminals.
According to Symantec, scammers will often search for expensive auctions and
place winning bids with the hopes of defrauding the seller.
After winning an auction, the scammer sends the seller a check for a larger
amount than the asking price, telling the retailer to use some of the extra
amount to cover shipping and handling fees and wire the rest to the scammer's
account.
The seller's bank will later inform the seller that the check was a forgery
and that it will refrain from depositing the funds. This will leave the seller
without the money that he wired back.
A spokesperson for eBay told
vnunet.com that the company is well aware of both
scams, and offers buyers and sellers tips on how to avoid being defrauded.
Checking the details on the auction page, in particular the item number and
the the buyer and seller names, can go a long ways towards preventing fraud,
said the spokesperson.
EBay displays the name of the winning bidder on the item's page, so when the
seller decides to award the item to the second-highest bid, that information is
automatically updated.
Users should always verify that their name is listed as the winning bidder
and that the item they view is, in fact the item that they had placed a bid on.
For sellers, eBay recommends waiting until a check has cleared to ship an
item, and the company urges sellers not to exchange funds that exceed the agreed
transaction amount.
"Part of this also boils down to user education," said the spokesperson. "
The more that we can make people aware of these scams, the less likely they are
to fall for them."
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