Options
U.S. FTC Targets Internet Auction Fraud (Reuters)
mercury1
Posts: 82
WASHINGTON (Reuters) - U.S. law-enforcement officials announced a crackdown on Wednesday on Internet-auction fraud, which has grown along with traffic to eBay Inc. <EBAY.O> and other auction sites.
The Federal Trade Commission said it had shut down two vendors who allegedly engaged in fraudulent behavior, while local law enforcers have taken action in 57 cases as well, ranging from warning letters to criminal prosecution.
Howard Beales, head of the FTC's consumer-protection division, said such inter-agency efforts were key to cutting down on the fast-growing problem.
"These types of cooperative law enforcement actions will help ensure that online auction fraud is going, going, gone from the scene," Beales said in a statement.
Online auction scams are the most common type of Internet-based fraud, according to FTC figures, accounting for 51,000 complaints in 2002.
Scam artists in recent years have found that online auctions provide an easy way to sell merchandise that doesn't exist, commonly offering big-ticket, relatively generic items like computers or automobiles.
eBay estimates that only one in 10,000 transactions on its site is fraudulent.
Many of the cases announced Wednesday were relatively straightforward -- consumers paid for an item that was never delivered to them, the FTC said.
But some alleged scam artists go to greater lengths to conceal their activities. One case involved a seller who since 1999 changed his account name constantly and even stole others' identities, including that of a dead man, to stay ahead of those he had allegedly ripped off. Another alleged con man set up a bogus escrow service to dupe buyers into sending their money and sellers to sending their merchandise without providing anything in return, the FTC said.
Consumers should find out all they can about the buyer before bidding on an online auction, the FTC said, and research escrow or online payment services before using them.
The Federal Trade Commission said it had shut down two vendors who allegedly engaged in fraudulent behavior, while local law enforcers have taken action in 57 cases as well, ranging from warning letters to criminal prosecution.
Howard Beales, head of the FTC's consumer-protection division, said such inter-agency efforts were key to cutting down on the fast-growing problem.
"These types of cooperative law enforcement actions will help ensure that online auction fraud is going, going, gone from the scene," Beales said in a statement.
Online auction scams are the most common type of Internet-based fraud, according to FTC figures, accounting for 51,000 complaints in 2002.
Scam artists in recent years have found that online auctions provide an easy way to sell merchandise that doesn't exist, commonly offering big-ticket, relatively generic items like computers or automobiles.
eBay estimates that only one in 10,000 transactions on its site is fraudulent.
Many of the cases announced Wednesday were relatively straightforward -- consumers paid for an item that was never delivered to them, the FTC said.
But some alleged scam artists go to greater lengths to conceal their activities. One case involved a seller who since 1999 changed his account name constantly and even stole others' identities, including that of a dead man, to stay ahead of those he had allegedly ripped off. Another alleged con man set up a bogus escrow service to dupe buyers into sending their money and sellers to sending their merchandise without providing anything in return, the FTC said.
Consumers should find out all they can about the buyer before bidding on an online auction, the FTC said, and research escrow or online payment services before using them.
0
Comments
<< <i>officials announced a crackdown on Wednesday on Internet-auction fraud, which has grown along with traffic to eBay Inc >>
uh..., are there other auction sites?
K S