Ebay Scams on the Buyer and Seller Sides of The Issue




An Ebay Store can be profitable but you should also be aware of the scams that may be out there. And sadly there are many. What I will attempt to do is to give you some relevant scams on both the Seller Side and the Buyer Side.


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 get the product back, because they 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 loss to the buyer.


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.


Buyer Side Scams

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 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 tranfer" 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.

Tip: Use the Ebay recommended escrow service www.escrow.com


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


How to Protect Yourself

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

Links To Help You Stay Safe Online

Report Your Scams
Ebay Security Center 


Tip: If you get an uneasy feeling in your gut that tell's you something isn't right. Believe it. And remember that if it is too good to be true-IT IS. Only solution is to step away and not engage.