It is known as “Operation Bidder Beware” and it is a law enforcement crackdown targeting Internet auction scams. Online auction fraud has bilked thousands of honest consumers out of millions of their hard-earned dollars and merchandise.
In fact, auction fraud is the single largest category of Internet-related complaints in the Federal Trade Commission’s (FTC) “consumer sentinel” database. This database logged an amazing 51,000-plus online auction-connected complaints in 2002 alone.
Operation Bidder Beware, a coordinated effort of the FTC and the National Association of Attorneys General, has, according to a recent news release, resulted in 57 criminal and civil law enforcement actions.
According to the FTC’s Director of Consumer Protection, the most effective way to fight Internet auction fraud is a team approach among law enforcers. The FTC is working with partners almost coast to coast to stop scammers in the virtual world.
While law enforcement has a vital role to play in stopping online auction rip-offs, responsible auction sites are working to “police” their own markets. However, as with most types of fraud, education is the single most important and powerful tool to help protect the innocent consumer.
Here are some common Internet fraud scenarios:
Many cases involve a standard scam where consumers purportedly “won” the bid for merchandise through an online auction site, sent in their money, but never received the merchandise. Some crafty thieves are taking this rip-off a step further by constantly changing their online auction names and e-mail addresses, making it harder for both the consumer and law enforcement to track them down.
Online criminals have even allegedly set up phony escrow services. Legitimate escrow services are used in Internet auction transactions to prevent fraud by acting as an independent third party after the transaction has taken place by receiving the buyers’ money and assuring the sellers that they can safely ship the goods and holding payment until the consumers are satisfied with their purchases. Then, and only then, does the escrow service release the funds to the seller.
In creating these con escrow services, scammers, depending on whether they are the “buyer” or “seller” in a particular transaction, have either fraudulently kept the money without sending the merchandise or received goods without making payment.
What can you do to help reduce your chances of being an online auction fraud victim?
Here are some valuable tips suggested by the FTC:
If you do have any problems during an online auction transaction, try to work them out with the seller, buyer or site operator.
If that does not work, file a complaint with your local state attorney general’s office and the FTC by calling toll-free 1-877-FTC-HELP.
(Note: I am always looking for the newest and most fascinating security, safety and crime prevention related products to feature in future Staying Safe columns. If you distribute such items, please email me with details.)
Copyright 2003 by Bruce Mandelblit
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“Staying Safe” with Bruce Mandelblit is a regular column for the readers of NewsMax.com and NewsMax.com Magazine.
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Bruce is a nationally known security journalist, as well as a recently retired, highly decorated reserve Law Enforcement Officer.
Bruce writes Staying Safe, a nationally syndicated weekly column covering the topics of security, safety and crime prevention.
Bruce was commissioned as a Kentucky Colonel – the state's highest honor – by Gov. Paul E. Patton for his public service.
This column is provided for general information purposes only. Please check with your local law enforcement agency and legal professional for information specific to you and your jurisdiction.
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