Things to take note to prevent e-auction fraud when a consumer participating in an e-auction

An e-auction is an electronic reverse auction where the suppliers use internet-based software to bid against each other online. The process of an e-auction aims to find a fair price for the goods by identifying buyers who need them the most. The process of running an e-auction can be complicated and e-auction technology need to be sure that the e-auction process has been backed up with a well run procurement process. Examples of e-auction are http://www.lelong.com.my/ and http://www.ebay.com.my/.

 

An e-auction fraud includes fraud due to the misrepresentation of a product advertised for sale through an internet auction site, the non delivery or a non payment for goods purchased through an internet auction site.

 

To prevent e-auction fraud

 

1. The consumer must deal with companies or individuals they know by reputation or experience. When the consumers aren’t familiar with the company, the consumers need do research. Consumers are advised to find out the company’s address and phone number. Never conduct business with a company that doesn’t list a physical address or telephone number on its Web site.

 

2. The consumers should read the terms and conditions of the contract carefully to make sure they understand the delivery option, return policy and product or service warranty. The consumers must ask for information about the exchange rate and any applicable duties and taxes before having the international transactions.

 

3. The consumers should also look for a privacy policy. The consumers must be sure that they are comfortable with how the company collects, protects and uses their personal information before they submit any details.

 

4. The consumer must make sure the transactions are secure. The consumers must not enter any financial information when consumers see a broken-key or open padlock symbol on the Internet browser. This means that the transaction is not secure and could be intercepted by a third party. When the key is complete or the padlock is locked, your browser is indicating a secure transaction.

 

5. The consumer must check for endorsement by an association or a quality assurance program. There are several seal of approval for Web sites that the consumer must confirm the credibility of the company and the Web site.

 

The consumers need to avoid spam by being careful about disclosing their e-mail address both on and off-line. The consumers must check a company’s privacy policy to find out whether their e-mail address could be shared with other companies.