Thing To Take Note To Prevent E-Auction Fraud When A Consumer Participating In An E-auction

E-auction is a market mechanism by which buyers make bids and selleres place offers; its charecterized by the competitive and dynamic nature by which the final price is reached. Auctions, an established method of commerce for generations, deals with products and services for which conventional marketing channels are ineffective or inefficient.The online auction business model is one in which participants bid for products and services over the Internet. The functionality of buying and selling in an auction format is made possible through auction software which regulates the various processes involved.

Protecting Against E-Auction Fraud

The largest Internet auctioneer, eBay, has introduced several measures in an effort to reduce fraud.The following are some of eBay's antifraud meausures :

1. User identity verification.
-eBay uses the services of Equifax to verufy user for a $5 fee. Verified eBay User, a voluntary programme, ecourages users to supply eBay with information for online verification. By offering theirSocial Security number, driver's license number, and date of birth, users can qualify for the highest level of verification on eBay.

2. Authentication service.

-Product authentication is a way of determining whether an item is genuine and described appropriately. Authentication is very difficult to perform because it relies on the the expertise of the authenticators. Beacuase of their training and experince, experts can 9 for a fee0 often detect counterfeits based on subtle details. However, two expert authentications may have different opinions about the authenticity of the same item.

3.Gradind services.

-Grading is a way of determining the physical condition of an item, such as "poor quality " or "mint condition." The actual grading system depends on the type of item being graded. Different grading systems- For example, trading cards are graded from A1 to F1, whereas coins are graded from poor to perfect uncirculated.

4. Feedback Forum.

- The eBay feedback Forum allows registered buyers and sellers to build up their online trading reputations. It providees users with the ability to comment on their experinces with other individuals.

5. Nonpayment punishment.

- eBay implemented a policy against those who do not honor their winning bids. To help protect sellers, afirst -time nonpaymant results in friendly warning. A sterner warning is issued for a second-time offense, a 30-day suspension for a third offense, and indefinite suspension for a fourth offense.

References :

1.http://forums.ebay.com/db2/thread.jspa?threadID=1000107619&start=160

2.http://en.wikipedia.org/wiki/Online_auction

Prepared by Lew Pei Ean

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