How to spot eBay Scammers and Fraudulent Sellers
Posted December 3, 2011 by Nick Vogt in Web and Internet
I have been selling and buying on eBay since 2003 and have ran across all sorts of scams and unethical sellers. I've even fallen for a scam once, but was able to recover my payment thankfully. Here are some ways that you can protect yourself as a eBay buyer and spot fake eBay sellers and listings.Check the feedback
Many scammers will boost their 100% feedback rating by purchasing lots of small items prior to attempting their scam. These are often $1.00 items from big sellers that have auto-feedback software. This assures the scammer that he or she will receive a lot of positive feedback quickly and for little cost.
If a seller has a lot of positive feedback from the same day or over the course of a few days, and they are all cheap items such as cell phone cases, the seller is probably boosting their feedback score and could be getting ready for a scam. It is also possible that it is a legitimate seller just trying to boost their feedback. Either way, I advise caution when dealing with these sellers.
$500 total sales
Many scammers will sell their fake product for around $500, or offer multiple fake products that add up to around $500. The reason for this is due to PayPal's $500 per month withdrawal limit for unconfirmed accounts. Scammers aren't going to go through the confirmation process with PayPal, which requires additional bank and credit information, so they generally go for quick, $500 scams.
For example, a seller might offer 10 computer monitors for $50 each, and advertise it as a one-day sale or blow out. Pay attention to what the seller is selling, and check their other items for sale. A $500 total alone doesn't mean the seller is a scammer, but it is one sign to look out for.
Too good to be true
If it's too good to be true, it probably is. If someone has gone through the process necessary to create their eBay account, link their financial account, and create a listing, they have probably done research into the value of what they're selling. You can find great deals on eBay from time to time, but if a price is insanely good, make sure you do additional research into the seller before purchasing. Scammers often rely on buyers acting on impulse to pull off a scam, which brings me to my next point:
Blow-outs, one-day sales, and urgency
Scammers will almost always try to put urgency on their sale, to try and get buyers to purchase emotionally and impulsively. There are plenty of legitimate sellers that need to move product quickly, or are seeking to clear out old inventory. However, you should be particularly cautious when a seller has a lot of "urgent" verbiage in their listing.
PayPal
Always make sure the seller accepts PayPal. If you pay with PayPal and the seller turns out to be a scammer, you can file a claim with PayPal and generally get your money back. Most scammers will be unresponsive to emails or may cancel their eBay account, which helps you to start the claim process sooner. The sooner you start the claim, the better the chances are of PayPal catching the scammer.
Stay on top of anything you purchase on eBay. If a seller cancels his or her account before you've received the item, and you have had no contact with that seller, go to the PayPal Resolution center immediately and file a claim (note: whenever following a link to PayPal like that one, double check that the address bar shows "www.paypal.com" as the domain - when it doubt, open a new window and type in www.paypal.com manually).
External links
Be extra careful whenever following external links from a seller. They are generally fine if they are for informational purposes only, but be extremely cautious when following a seller's link in regards to the purchase process itself. Some sellers will try to direct you to their online store to complete the purchase, to avoid eBay's fees. This is against eBay's terms of service and you may consider reporting them.
Outside-of-eBay transactions
If a seller wants to send you a PayPal invoice for something, without going through the eBay "Buy it Now" or auction process, you should be cautious. You will have less protection this way, though PayPal still does protect you to some degree. If you've already purchased from the seller before, and they are invoicing you for a small related item that may not be worth creating an eBay listing for (IE: a $2 gasket to go with the pump you bought), you are probably okay, but avoid sellers that actively try to side-step the eBay system altogether. Sellers do this because they want to avoid eBay's final value fees, which is understandable (eBay gets 5-7% of the item value, and PayPal gets another 2-3%) but is still against eBay's terms of service, and you may consider reporting them.
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