Dealing with online auction site fraud
Online auction fraud occurs when, as a buyer, you are misled about the goods or services you are buying through an online auction or marketplace, or, as a seller, you are not paid or are paid using fraudulent payment methods for goods you are selling.
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How do you know if you have been a victim of online auction fraud?
Both buyers and sellers can be victims of online auction fraud.
You’re a buyer and:
The item never arrives.
The item differs significantly from the online description or photos.
The item is of poor quality.
You receive something different from what you ordered.
You are charged hidden costs that were not advertised.
Fake bidding (shill bidding) is used to artificially increase the selling price.
Counterfeit, pirated or illegal goods are offered for sale.
Important information was deliberately omitted and would have affected your decision to buy.
You’re a seller and:
You are not paid by the buyer.
The buyer asks you to deliver the goods before payment is received.
The buyer is using stolen bank or card details (see the separate playbook on credit card fraud if applicable).
The buyer delays payment or repeatedly provides excuses for not paying.
The buyer uses a fake escrow service or fraudulent payment arrangement, resulting in the funds being reversed after the goods have been dispatched.
The buyer asks you to deliver to a different address from the one originally agreed.
The buyer sends fake proof of payment or fake bank notifications to persuade you to release the goods before the money has cleared.
Approaches to dealing with online auction fraud
Preserve evidence - Keep copies of all relevant evidence before taking further action, including:
Screenshots of the listing and transaction.
Messages exchanged with the buyer or seller.
Payment confirmations and receipts.
Tracking information.
Usernames, profile details and URLs.
Contact the platform - Report the transaction or listing to the online marketplace or auction platform as soon as possible. Most platforms have fraud reporting processes and may investigate the account or listing.
Review the platform’s policies - Review the platform's buyer protection, seller protection, refund and dispute resolution policies so you understand what assistance may be available.
Report suspected shill bidding - If you believe fake bidding has been used to inflate prices, report it to the platform so it can investigate.
Contact your payment provider - If you made a payment through a payment service that offers buyer protection, report the transaction promptly and ask about dispute or refund options.
Contact your bank - If you believe you have been tricked into making a fraudulent payment, contact your bank immediately. In some cases, the bank may be able to stop or recover funds depending on how the payment was made and how quickly it is reported.
Report the crime
If you believe a criminal offence has occurred, report the matter to the South African Police Service (SAPS).
Where appropriate, also report the incident to the relevant online marketplace or payment provider.
How to reduce the risk of online auction fraud
Use reputable online auction or marketplace platforms.
Start with lower-value purchases or sales until you are familiar with how the platform works.
Read the item description carefully and ask questions if anything is unclear.
Read the platform's terms and conditions, including its dispute resolution process.
Pay through the platform wherever possible rather than paying the seller directly.
Use reputable payment methods and avoid bank transfers where safer payment options are available.
Compare prices across different sellers. A significantly lower price may indicate a scam.
Review the seller's ratings and feedback before purchasing.
Where appropriate, use tracked delivery services that require proof of delivery.
Consider using a reputable escrow service for high-value transactions where appropriate.
Keep copies of all transaction records, including receipts, emails, messages and shipping documents.
Keep all communication and payments on the platform. Be cautious if a buyer or seller asks to move the conversation to WhatsApp, SMS or email, or asks you to make payment outside the platform, as this may remove buyer or seller protection.
Do not share unnecessary personal information, such as copies of identity documents, banking credentials or other sensitive personal information, unless it is genuinely required and you have verified who you are dealing with.
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