Online Buyer Scams:
Following are a few ways in which unscrupulous buyers can attempt to cheat
unsuspecting online sellers. The scenarios described below are just to give
you an idea of how some of the popular scams work and some general advice on
how to protect yourself. Ultimately buying and selling online is similar to
that in everyday life and ordinary caution and common sense must be exercised
when transacting over the internet.
- Stolen Credit Card Fraud:
If the buyer makes a payment via a stolen credit card, the money may
later be recovered from the seller even though they have already shipped
the item to the scam buyer leaving the seller out of pocket.To protect
yourself be wary of buyers who demand you send the merchandise
immediately. They may want to get their merchandise before the bank
discovers that they used a stolen credit card. If the buyer does not have
a high feedback score and you have not dealt with them before it is
advisable to request payment via Paypal so a Paypal dispute can be filed
if things go wrong. If you believe the buyer is acting suspiciously, you
can alert Tazbar support via email. In the event of the payment being
recovered from the seller's account as being made from a stolen credit
card, you can file a dispute via the Tazbar dispute console so that
action can be taken against the buyer's account.
- Cashback Fraud
The fraudster purchases an item online and pays far more than the
asking price for it via cheque or banker's draft. He then asks the victim
to cash the cheques /draft and refund the difference once the funds have
cleared. The fraudster pays via a stolen or fraudulently issued cheque/
draft. What the victim does not know is that the banks are entitled to
reclaim the value of the cheque if it turns out to be stolen or issued
fraudulently, often weeks later even after the funds have cleared.
However the refund granted by the victim, as it isn't fraudulent cannot
be recalled. The victim cannot be reimbursed by the bank for the loss
therefore the victim not only loses the refund amount but often the item
they were selling as well.To prevent this , be wary of buyers who are
evasive, do not wish to speak to you on the phone, give an exact address
or wants to deal with you via a third party, often the 'shipping agent.
Be wary of buyers who offer to pay more than the asking price or want
you to make a payment to a third party.
- Payment Reversal or Chargeback Fraud
This type of scam shows us that it is important not to accept any form
of payment other than cash if the buyer is to collect the purchased
item.
The buyer buys from a local seller and upon winning the auction will
contact the seller to arrange a time to collect the item purchased.
Usually the scammer will make use of telephone or personal email rather
than the Ask the seller a question facility (ASQ) so there is no record
of them requesting collection from the seller. The scammer will fabricate
an excuse to pay for the item using PayPal shortly before arriving to
pick up the item. The item is collected so there is no 'proof of postage'
i.e. evidence that the seller actually dispatched the item. Once the
criminal has the item in their possession, they launch a complaint with
PayPal for non-supply of goods and succeed in having the transaction
reversed because the seller cannot prove that they have actually
delivered the item. The victim will learn of this scam when they receive
an email from PayPal indicating the transaction has been reversed. In
many cases, PayPal has refused to compensate the seller for the item.So
it is important not to accept any form of payment other than cash if the
buyer is collecting the item.
- Bid Shielding :
This is a buyer scam where a bidder uses their own account or asks
his/her friends to place multiple bids on an item to increase the selling
price and use it to ward off competition. The high bids are then
retracted at the last minute letting the scammer win the item at a low
price. To prevent this from happening Tazbar has time restrictions on bid
retractions. A buyer can only retract a bid within 30 minutes of placing
it and cannot retract a bid in the last 30 minutes of an auction. Sellers
are not obligated to accept bids if they uncover a common theme or do not
trust the bidders while the auction is active. They can cancel bids and
block bidders from live adverts.
- Failure to pay:
Scammers can pay via fake money orders, bounced cheques, stolen credit
cards, or a number of other methods, the buyer gets the goods and leaves
the merchant with nothing in return. The most important point to remember
here is never to send goods until you have received cleared payment. You
must check with the bank or paypal etc. to confirm that the funds have
been deposited fully into your account. Be wary of buyers who demand you
send the merchandise immediately. They may want to get their merchandise
before the bank discovers that they used a stolen credit card. Sellers
should try to accept smart payments like Google Checkout or Paypal, which
cover the seller in the case of fraud. Items should never be sent to PO
boxes or unconfirmed addresses. Merchandise must always be sent a
physical address preferably one that is registered with Paypal.
- The "Buy and Switch" Scam:
The buyer gets the merchandise and returns a similar item that has
been damaged, or a fake, with the claim that the item was not as
described. The seller refunds their money, and is left with broken and
unsaleable product.To protect yourself, take clear photos of your item
before you send them. Take note of any markings and damage. Mark the item
with a special light pen in an invisible place if possible. For soft toys
, furnishings or clothing, you could sew a small coloured knot in the
seam and photograph that. This method doesn’t prove that you’ve been
scammed, but if the matter ever goes to a small claims court it is a
preponderance of the evidence that counts.
- Non receipt or Damage Claims:
The only remedy against a claim for non-receipt of item is to always
send the item via traceable means and to provide a tracking number when
prompted by the dispute process. Damage claims are not always fraudulent
as things do get broken in transit. But sometimes these claims are a
result of the buy and switch scam, or careless handling by the buyer. A
Tazbar dispute can be opened to address the issue and facilitate
communication. If the item was adequately packaged and sent via recorded
delivery a claim can be filed with the courier. If you are sending
expensive or fragile items always insure them. If an item is sent insured
, it can be traced and any potential damage in transit is covered. Be
aware that some couriers don’t insure certain items such as ceramics. A
bidder who refuses to pay a few extra pounds for insuring an expensive or
fragile item must be informed in writing that they will be liable. Keep
this correspondence for your own protection. You can also add this to the
listing terms and conditions. Be wary of bidders who claim the item was
so damaged they discarded it and demand a refund. An item even if damaged
must be returned to the seller to claim a refund.
- Contacting the police:
Not receiving payment for items sold and delivered is an offence and
as a last resort you can contact the police.Tazbar co-operates fully with
all legal investigations. You can refer fraudalent users to Tazbar
Support support@tazbar.net and then to law enforcement. If you are
not sure whether it is a police matter, contact Tazbar Support first. For
further information about contacting law enforcement click here.