Week 6 - Things to take note to prevent e-auction fraud when a consumer participating in an e-auction

Things to take note to prevent e-auction fraud when a consumer participating in an e-auction:
1. User identity verification such in IC number, driver’s license number or date of birth. For example, verified eBay user, the voluntary program, encourages users to supply eBay with information for online verification. By offering their Social Security number, driver’s license number, and date of birth, users can qualify for the highest level of verification on eBay.
2. Authentication service. It is to determine whether an item is genuine and described appropriately. It difficult to perform because their training and experience, experts can detect counterfeits based on subtle detail.
3. Grading services which is a way to determine the physical condition of an item, such as ‘poor quality’ or ‘mint condition’. Different item have different grading systems. For eg, trading cards are graded from A1 to F1, whereas coins are graded from poor to perfect uncirculated.
4. Feedback forum. It allows buyers and sellers to build up their online trading reputations. It provides user with ability to comment on their experiences with other.
5. Insurance policy. eBay offers insurance underwritten by Lloyd's of London. Users are covered up to $ 200, with a $25 deductible. The program is provided at no cost to eBay users. Supplementary insurance is available from companies such as AuctionInsurance.com. At other auction sites, such as Amazon.com/ auction, some insurance is provided, but extra insurance may be added.
6. Escrow services. Both buyers and sellers in a deal are protected with an independent third party. Buyer mails the payment to escrow services which verifies the payment and alerts the seller when everything checks out. An example of a provider of online escrow services s i-Escrow.
7. Non-payment punishment. To protect sellers, a friendly warning for first-time nonpayment. A sterner warning is for second-time offense, with a 30 day suspension for a third offense and an indefinite suspension for a fourth offense.
8. Appraisal services which use a variety of methods to appraise items. It includes expert assessment of authenticity and condition, and reviewing what comparable items have sold for in the marketplace in recent months.
9. Item verification is a way of confirm he identity and evaluate the condition of an item. Third parties will evaluate and identify an item through a variety of means. For example, some collectors have their item “DNA tagged” for identification purpose. It provides a way of tracking an item if it charges ownership in future 10. Physical inspection. It can eliminate many problems especially for collectors’ item.