Who is affected by auction fraud?

Auction fraud generally occurs in one of two ways. The differentiating factor is the victim: it is either the seller or the buyer. Both of these cases of online auction fraud cost the victim both money and time. However, both types of fraud are largely avoidable in auctions, given that some basic precautions are taken. ReliaBid offers a solution to stop online auction fraud for eBay PowerSellers.

What are the types of online auction fraud?

Seller Fraud

In the past, most attention has been focused on the issue of seller fraud. Seller fraud occurs when a seller fails to deliver goods after taking payment from a buyer. Although this type of fraud has received attention in the media and has struck many buyers, it is likely less frequent than the other type of fraud we see in the online auction marketplace: buyer fraud.

Buyer Fraud

When a buyer pledges to purchase a product from a seller, and then fails to make payment, buyer fraud has occurred. This type of fraud can take many forms and occurs frequently not just in online auctions, such as on eBay, but in the overall online marketplace. In the past, this type of fraud was viewed as “cost of doing business” online, however, it is an expensive and unnecessary cost for online auction sellers and eBay PowerSellers to bear. Buyer fraud can occur by a buyer refusing to make payment for his or her winning bid, or even by the buyer reversing payment (i.e. a chargeback) after payment has been made.

In either case, the seller's expectation to sell the item is not met. The seller loses money by not being able to complete the sale. On eBay, buyer fraud means that a seller could lose their listing fees, and then would have to attempt to find another buyer, potentially at a lower price- increasing losses. Auction fraud costs online auction sellers money.

There is a way to stop online auction fraud!

ReliaBid offers a service that is designed to eliminate buyer fraud and remove the occurrence of online auction fraud from eBay PowerSeller transactions. You don't even have to be an eBay PowerSeller to sign up! ReliaBid's Seal Program can stop online auction fraud by over 99% in your auctions. Click here to learn more!