Ebay Scams on the Buyer and Seller Sides of The Issue



Ebay Scams abound. Why? I would have to assume that everyone wants to get on Ebay and make some money. But sadly, that include the scammers. And you may be surprised to know that the scams happening on Ebay is not restricted to the Seller side alone, it also happens on the Buyer side. What I will attempt to do is to give you some relevant scams on both the Seller Side and the Buyer Side.


Ebay Seller Side Scams

Sellers can be scammed by their buyers. So if you are a newbie to the Ebay scene it is wise to do a little research to protect you and your business. Here are some of the scams that the buyer will place upon the seller.

Fake credit card, money order or check - This is how this scam will go down. The buyer uses a credit card to buy the item. Everything is on the up and up-so far. However, once the buyer receives the item, he/she will issue a charge-back. A charge-back will give the buyer his money back, and leave you the seller with the charge-back charges. The seller loses in two areas: 1) in most cases the buyer will not give the product back, because the seller may have not kept accurate records of the transaction and not utilized a delivery service that utilize tracking numbers. 2) the seller is responsible for the charge-back charges.

Tip: If you are a seller, keep accurate records and utilize either a delivery service that utilize tracking numbers to verify the product was sent and received.

Stolen Credit Card - The buyer buys your product with a stolen credit card. You send the product to the buyer. A month passes and the real owner of the credit card calls the credit card company to state that he did not purchase this product. The credit card company orders a chargeback. Seller again loses: 1) The seller is responsible for the chargeback charges, and; 2) The product is a loss-buyer just received a free product.

Wholesale List Scam - the wholesaler uses assumptions to his advantage in this scam. The wholesaler gives you a photo of a DVD, or maybe a monitor  – the buyer is under the assumption that they are buying a monitor or DVD, right? Wrong? You may only be buying a wholesale list. This is what they call a “bait and switch”. They are hoping that the individual is in a hurry or cannot read English well, and they blindly buy. Rule of thumb: read everything before buying.

Fakes or Reproductions of Items - People will try to sell a fake item for a large sum of money. Here they give a "certificate of authenticity" as proof that the item is genuine. One telltale sign that it may not be so authentic is if the item looks in mint condition, or they use the following "out" language -- "to the best of my knowledge" or "I think".

Buyer Email with Fake PayPal Email - This one definitely needs explaining. The buyer sends an email to the seller asking to buy the product they are selling. The price, of course, is double the price that the seller is asking for- (good enticement right?). He/She will ask for your PayPal email address to secure the sell or he will ask for a money request be sent to his address.

What happens next? You'll receive an email that is supposedly from PayPal stating that the transaction went through but cannot be completed until you send the tracking number for the item you are sending. Once completed, PayPal will credit your account.

(This is a scam) the PayPal notice was sent by the scammer. First question you would need to ask yourself, "Why does PayPal need a tracking number?" If you can't answer it, it's time to email Paypal.

Always be aware of misspellings, and if you have that uncomfortable feeling about the situation-it's time to step back and start verifying the information about the buyer, as well as, contacting PayPal and Ebay.

Switch and Return - This is where the buyer will buy the item, and return it after receiving it. However, the item that they return is not yours, but theirs. Their purpose, to upgrade their product without paying any money out. So, if a buyer contacts you with questions about your return policy-that's a red flag.

Shipping and Handling-Hidden Costs - The seller lists a product at a low price, without revealing any information about shipping and handling. If you're new, you may assume that it's not going to be a problem, or it's included in the price.

However, the price shock will hit you after you win the bid. You may find your low price win to be very high after the seller tacks on the hidden shipping and handling charges, with the inflated insurance charges to ship your item. Seller wins, buyer loses. If they are not upfront about shipping and handling-might want to look elsewhere.



Two For The Price of One-Both Ebay Seller and Buyer Loses

There is one scam that makes life miserable for both the buyer and the seller. It's called the Ebay Account Hijacker.

Ebay Account Hijackers -A Ebay seller in good standing will find his ebay account hijacked by a scammer. The buyer purchases a product through the hijacked account. The Ebay seller gets no money, and the buyer gets no product.



Ebay Buyer Side Scams

Here are some common buyer side scams that you should avoid. If you're thinking about buying something on eBay-check out some of the scams below to keep you safe, and dealing with an honest seller.

Western Union Scam - The first, telltale sign that something may be amiss is when the seller will only accept Western Union payment from the buyer.

To further entice the buyer the product will be below cost-a price that the buyer just cannot resist. The EMOTION of the buyer (I need it, I want it, and it's reasonable) takes the lead, so they agree to buy it through Western Union.

The stage is set, the scam succeeds and the buyer has been scammed. Why? 1) The buyer will never receive the product from the seller, or; 2) The seller will send a product not of the quality advertised. 

Tip: NEVER send money by Western Union when it is a stranger.


Fake Escrow Account - This scam is accomplished by emails. Here is how the scam will go down. The buyer finds a product he/she likes and directs an email to the seller. The seller will state that yes it is for sell, and if you want to buy it, to please send the money through a "wire transfer" through an "Ebay trader". The scam has begun...

The "Ebay trader" notation is the seller's attempt to fool the buyer into thinking that this is a secure escrow account, when in fact it is not. Where did your money go?

Your money is deposited into an account, in most cases, overseas.

Fake escrows will direct you to 3 payment methods:

1. Western Union (Never pay for auctions with Western Union)
2. Ask for payment through E-Gold, E-Bullion type currency transfers
3. Make payment direct through your checking account to what you think is an escrow  company bank account. (I wouldn't use your checking account online for anything, because you only have a 30 day
span to direct the problem with this type of credit card-and less recourse to resolving the issue).

Fradulent Listings - Fraudulent auctions contains links that direct buyers to spoofed sites that attempt to phish their Ebay credentials.


Auction Bidding Pre-Approval - If you want to bid on an item, and the seller requests that you need pre-approval to bid on the item, and thus, you must contact them by email, click away-it's a scam.

What the seller is trying to do is to get the buyer (you) talking by email outside the eBay realm. Then he can work his scam, suggesting that you use Western Union, or he will direct you to a "escrow site" (The site is really been set up by the seller to scam the buyer). 


How Buyers Can Protect Themselves on Ebay

1) Ask questions of the seller about the item
2) Verify seller's contact information-before you submit money to seller
3) Make sure your method of payment offers protection. Paypal is the safest way on Ebay
4) If seller accepts only cash or cash wire transfers -- do not bid on listing
5) Be cautious when considering escrow accounts
6) If you received an email that says it was sent by Ebay-verify. You can verify that the email is real by forwarding the email to spoof@ebay . They will respond in 24 hours to tell you if it is real or fake.
7) Never send money through Western Union to a stranger



Tip for buyers and sellers new to eBay:

Tips for buyers:
1) If you get an uneasy feeling in your gut that something just isn't right, listen to it. And remember that if it is too good to be true-IT IS. Only solution is to step away and not engage.
2) If you are new to eBay buying, it is wise that download the eBay toolbar with Account Guard. This will help you against fraud.
3) Scan for viruses
4) Keep an eye on your account for any suspious activity.

Tips for sellers:
1) When looking for wholesalers do your research. Follow up with the BBB.  In addition, those new to Ebay, if you are wanting to do business with a wholesaler you much have an EID (Employer Identification Number).
2) If you are new to eBay selling, it is wise that download the eBay toolbar with Account Guard. This will help you against fraud.
3) Scan for viruses
4) Keep an eye on your account for any suspious activity.

Links To Help You Stay Safe Online

My Affiliate Place- Ebays Scams For Buyers and Sellers