This hub was created to help you learn to avoid being a victim of Ebay fraud and scams. I will explain what methods devious sellers use to con buyers out of hundred, even thousands of dollars. Also I will explain how to spot fake escrow sites and why it is essential NOT to use Western Union, or MoneyGram for purchases.

Ebay is a billion dollar a year company and a prime target for scammers. One of the most common scams on Ebay is you winning an auction, paying for it, then never getting anything in return. This is true for high priced items on Ebay such as automobiles and small electronics, particularly high end cell phones.

Ebay Scams Against Buyers
For automobile scams, if you are the buyer, never use the escrow company that the seller suggests. More than likely, it is a fraudulent company, unless it is something like escrow.com. Also be weary as they may suggest escrow.com and provide you a link to that site. If they do, check the link and make sure it doesn't have any added characters such as "iescrow.com", or "eEscrow.com", or "escrowed.com". Also look for different extensions like "escrow.edu", or "escrow.org". The easiest way to avoid this is just typing the address yourself to the company and not following the link. If you don't know it, Google it.

If they can talk you into using their escrow company, what you can do is write down, or copy and paste, their suggested escrow website address and go to a place that sells domain names, such as GoDaddy.com. When you get to that website, type the website address, or paste it, into the box they have on their home page that lets you search for a domain name to see if it is purchasable, or already bought. Of course the one you type, or paste into that box will be already taken. But this is what you want. When the site tells you that this name is already taken, simply click the link that tells you who's name it is under and when it was purchased. This is usually known as the WhoIs information of a domain name. Sometimes you will have to click another link on the bottom of that displayed information page to get to the date it was purchased, but most of the time it will be the first page displayed.

Now, the information that you will want most is the date the domain name was purchased. If it was purchased a couple of months ago, or less, then you definitely must not use that website, or escrow service. More than likely that domain was just purchased just for the purpose of using it to build that fake escrow website, because you need a domain name to upload a website to. And even if it is a legitimate company just starting out, it is way too new to know if it is a worthy company to use. So do not, repeat DO NOT use this escrow company. It is better to walk away from this deal with your money intact, than walk away completely empty handed and humiliated.

Also when purchasing an automobile never use Western Union, or MoneyGram. Also NEVER hurry up to make the purchase (please see International Wholesale Scams above). A lot of times the seller will say they have to sell their vehicle because they are moving and need to sell it right away and will take your offer. Then they will end their listing which will cause the auction purchase to be made out of Ebay, which is a violation of EBay's rules and you will not be covered for a loss. This is when they start suggesting Western Union, or MoneyGram. Or will suggest one of their bogus escrow websites and supply you the URL for that site. You can definitely avoid being the victim of one of these scams with a little diligence and caution and by using the tips that I have provided. That will supply you with a good arsenal to avoid being scammed out of your hard earned cash.

The same scams are also applied to small electronics, particularly high end cell phones. When placing a bid on a phone, or electronic device, make sure that the seller has a high feedback rating. If you see a seller with one, or two, feedbacks it is better to spend a couple more dollars on an Ebay PowerSeller with thousands of feedbacks. Also check their feedbacks and see if there are multiple purchases on the device that you want to purchase. If there is, and they are all positive on that particular device, by all means place your bid.

Another thing to be weary about when placing a bid is the photos. If it is a photo that was ripped off from the web, avoid this auction. Think about it, why wouldn't the seller take a picture of his actual stock if he has them? What would be more realistic? A picture someone stole from the web? Or the actual stock picture from the seller? You will see the actual stock pictures a lot on Ebay because the sellers are smart. What they will do is take a picture of their actual stock with their name and the date on a placard in the picture to show you that he really has the phones. Look for these plus check the feedback when placing a bid.

Also, like mentioned in the Ebay automobile purchases, never use Western Union, or MoneyGram to make these purchases. Again, please see the International Wholesale Scams above to see why.

Ebay Scams Against Sellers
As for scams against sellers, you have to be careful for buyers who have a very low feedback rating. You can use an option in listing your items that will prevent anyone below a certain feedback from bidding on your auction. It is very easy to open an Ebay account, especially for the buyers and they will do this just to place a bid on your item to win it. What they then do is make the payment through Paypal and claim that the item was never received. Always protect yourself by dealing domestically, and not Internationally. Also make sure that you always use Tracking options when shipping by the US Post Office. This way you will have proof that the item was sent to the buyer as this is one of the items Paypal asks for as proof that you sent the item.

In conclusion, I hope that this hub has helped anyone considering making an online purchase. If you have any questions, please do not hesitate to ask by leaving your comments!

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