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
- 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.
- 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.
- 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.
- 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.
- 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.
 

