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

Electronic auctions (e-auctions), auctions conducted online, have been in existence for several years on local area networks and were started on the Internet in 1995. Host sites on the Internet serve as brokers, offering services that enable sellers to post their goods for sale and allow buyers to bid on those items. The following are some of anti fraud measures:

• Escrow services. With an escrow service, both partners in a deal are protected. The buyer mails the payment to the escrow service, which verifies the payment and alerts the seller when everything checks out. At that point, the seller ships the goods to the buyer. After an agreed-upon inspection period, the buyer notifies the service, which then sends a check to the seller. (An example of a provider of online escrow services is tradenable.com.)
• Feedback Forum. The Feedback Forum allows registered buyers and sellers to build up their online trading reputations. It provides users with the ability to comment on their experiences with other individuals.
  
• Verification. One way of confirming the identity and evaluating the condition of an item is through verification.With verification, neutral third parties will evaluate and identify an item through a variety of means. For example, some collectors have their item “DNA tagged” for identification purposes.
  
• Appraisal services. Appraisers use a variety of methods to appraise items, including expert assessment of authenticity and condition and reviewing what comparable items have sold for in the marketplace in recent months.