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How to handle fraud:
If you are actually a victim of fraud, you need to report that
to the right authorities. If you sent the seller payment via the
post office or to a PO box, contact the Postal Service and file
charges. For any online fraud, you can file a complaint on the Internet
with the Internet Fraud Complaint Center, run by the FBI. The National
Fraud Information Center can also help you. You can contact them
on the Internet or by phone. Check their web site for information.
Understand
how the auction works:
Auction sites are a facilitator, they don't verify that the merchandise
actually exists or is described accurately, nor do they guarantee
that auction participants will keep their promises.
Check the seller's feedback comments based on previous transactions.
Keep in mind that glowing reports might be "planted" by the seller
and negative comments could be from a competitor.
When dealing with private individuals: BEWARE that many consumer
protection laws and government agencies that enforce them don't
deal with private sales, others will only if there is criminal fraud
involved, so if you have a problem it could be difficult to resolve.
Dealing with buyers or sellers in other countries: the physical
distance, difference in legal systems, and other factors could make
resolving it even more difficult.
Ask about delivery, returns, warranties, and service before you
pay. Get a definite delivery time and insist that the shipment is
insured. Ask about the return policy. If you're buying electronic
goods or appliances, find out if there is a warranty and how to
get service.
Avoid
cash payments.
For the buyer, a seller requesting cash can be a danger sign of
fraud.
For sellers, accepting cash makes it difficult to prove how much
was paid if there is a dispute later.
Payment by credit card can protect both buyer and seller.
Credit card payment protects the buyer because you can dispute the
charges if the goods are misrepresented or never delivered. For
sellers, payment by credit card is quicker than waiting for a check
or money order in the mail and avoids the problem of bad checks.
Consider using an escrow service. Escrow services are another good
payment option. For a small fee, an escrow service holds the buyer’s
payment and forwards it to the seller upon the buyer’s receipt and
approval of the item within an agreed upon inspection period For
buyers, escrow services can help ensure that they get what they
pay for. Sellers may find escrow services less expensive than participating
in the credit card payment system, especially if the buyer pays
the fee, and they avoid the problems of bad checks or stolen credit
cards. Escrow services may also help both parties by "refereeing"
disputes. Ask if the service is licensed and bonded and how you
can confirm that with the appropriate agency.
Let
the auction site know if you have a problem.
Some sites investigate problems like "shills" being used to bid
prices up or other abuses of the auction system. They may also want
to know about sellers who don't deliver or misrepresent their wares
and buyers who act in bad faith. Complaints may result in users
being barred from the site. Try mediation to resolve disputes. Not
all problems are due to fraud; buyers or sellers may simply fail
to hold up their parts of the bargain in a timely manner, or there
may be a legitimate disagreement about something nonrelevant.
US
Postal Inspection Service (Inspection
Service Office Locator)
Congress empowered the Postal Service "to investigate postal offenses
and civil matters relating to the Postal Service." Through its security
and enforcement functions, the Postal Inspection Service provides
assurance to American businesses for the safe exchange of funds
and securities through the U.S. Mail; to postal customers of the
"sanctity of the seal" in transmitting correspondence and messages;
and to postal employees of a safe work environment.
As fact-finding and investigative agents, Postal Inspectors are
federal law enforcement officers who carry firearms, make arrests
and serve federal search warrants and subpoenas. Inspectors work
closely with U.S. Attorneys, other law enforcement agencies and
local prosecutors to investigate postal cases and prepare them for
court. There are approximately 2,000 Postal Inspectors stationed
throughout the United States who enforce over 200 federal laws covering
investigations of crimes that adversely affect or fraudulently use
the U.S. Mail and postal system.
For
example:
POSTAL INSPECTION SERVICE
UNITED STATES POSTAL SERVICE
PO BOX 2000
PASADENA CA 91102-2000
Phone : 626-405-1200
Fax : 626-405-1207
Federal
Trade Commission: Consumer Protection
FTC:
File A Complaint
Verify
the seller's identity before you place your bid, and be wary of
sellers who you can't identify. Some sellers may use
a forged e-mail header, which makes follow-up contact close to impossible.
Get a telephone number for the seller and use it to confirm that
you have some way other than e-mail to contact the seller. Check
to see how the seller has treated other buyers. Some auction sites
post feedback ratings of sellers based on comments by other buyers.
This may give you some idea of how you'll be treated, but beware
of "shill" testimonials. Before you bid, find out what form of payment
the seller will accept. If the seller accepts only cashier's checks
or money orders, decide whether you are willing to take the risk
of sending your payment before you receive the product.
Find
out who pays for shipping and delivery. Generally, sellers
specify the cost of shipping the item and give buyers the option
of express delivery for an additional fee. If you're uncertain about
shipping costs, check with the seller before you bid. Check on the
seller's return policy. Can you return the item for a full refund
if you're not satisfied with it? If you return it, are you required
to pay shipping costs or a restocking fee? If you have any questions
about the item, e-mail or phone the seller. Don't place your bid
until your questions have been answered.
When
considering whether to place a bid, know exactly what you're buying.
Read the seller's description of the item or service, and if a photograph
is posted, take time to look at it closely. Try to determine the
relative value of an item before you bid. There's no guarantee that
something is a good deal just because it's on the Internet auction
block. "Brick-and-mortar" stores and online price-trading sites
may be good reality checks on price. If you find a bargain at an
auction site, remember the adage about deals that seem too good
to be true. They usually are.
Read
the fine print. Look for words like "refurbished," "close-out,"
"discontinued" or "off- brand," especially when shopping for computer
gear or electronic equipment. Consider whether the item comes with
a warranty, and where you'll get follow-up service if you need it.
Many sellers don't have the expertise or facilities to provide services
for the goods they sell. If that's the case with your seller, be
sure you're willing to forfeit that protection before placing a
bid. Know the Auction Site
Check
how the auction works. Don't assume that the rules used
by one Internet auction site apply to another. Some sites offer
step-by-step tutorials that take potential buyers through the bidding
process. Taking a few minutes to go through the tutorial might save
you frustration or disappointment later. Find out what protections
the auction site offers buyers. Some sites provide free insurance
or guarantees for items that are undelivered, inauthentic or just
not what the seller claimed.
If
you decide to enter the bidding, proceed with caution.
Establish your top price and stick to it. Don't bid on an item you
don't intend to buy. Remember that if you're the highest bidder,
you are obligated to follow through with the transaction. Auction
companies often bar "non- paying bidders" — those who back out of
a deal — from future bidding. When bidding, take steps to protect
your privacy. Don't give out personal identifying information like
your Social Security number, driver's license number or bank account
number. No seller should need it. Save all your transaction information.
Print or make note of the seller's identification, the item description
and the time, date and price you bid on the item. Print and save
a copy of every e- mail you send or receive from the auction company
or the seller.
After
you receive an e-mail with news that you've "won" an auction, arrange
to pay for your purchase. Pay with a credit card, if
possible, but it's likely that the seller will require payment by
certified check or money order. If you're not comfortable sending
a certified check or money order to the seller, consider using an
escrow service or paying for your item cash on delivery.
If
you run into a problem during your transaction, try to work it out
directly with the seller or with the auction web site.
If that doesn't work, file a complaint with the Federal Trade Commission
by calling toll-free 1-877-FTC-HELP (382-4357) or visiting the FTC's
web site at www.ftc.gov. Although the Commission cannot resolve
individual problems for consumers, it can act against a company
if it sees a pattern of possible law violations. You also may want
to contact your state Attorney General or your local consumer protection
office.
IFCC:
Internet Fraud Complaint Center
IFCC:
File A Complaint
IFCC accepts on-line Internet fraud complaints from either the person
who believes they were defrauded or from a third party to the complaint.
We can best process your complaint if we receive accurate and complete
information from you. Therefore, we request that you provide the
following information at this Web site:
- Your
name, address, and telephone number.
- The
name, address, telephone number, and Web address, if available,
of the individual or organization you believe defrauded you.
- Specific
details on how, why, and when you believe you were defrauded.
- Any
other relevant information you believe is necessary to support
your complaint.
- How
are complaints resolved?
We thoroughly review and evaluate each complaint so that we may
refer it to the appropriate local, state, or federal agency. Every
complaint that is referred goes to one or more law enforcement or
regulatory agencies that have jurisdiction over that matter.
Once we refer a complaint to the appropriate agency, it may then
be assigned to an investigator. We therefore ask that you provide
a phone number in the event an investigator needs to contact you
for additional information. IFCC cannot guarantee that your complaint
will be investigated.
What
happens after you file a complaint? After you file a
complaint at the IFCC Web site, you will receive an e-mail containing
a copy of the complaint you filed. You will also receive a complaint
number to be used as a reference. If at any time you have further
information you wish to report regarding your complaint, use the
complaint number in the subject line of your e-mail to ensure it
is properly directed to your complaint file. As Internet fraud complaints
are reported on line, IFCC electronically compiles the data. Trained
analysts review and research each complaint, disseminating information
to the appropriate local, state, or federal law enforcement agencies
for criminal, civil or administrative action, as needed.
Retaining
evidence related to your complaint It is important that
you keep any evidence you may have related to your complaint. Evidence
may include canceled checks; credit card receipts; phone bills;
faxes; pamphlets or brochures; mailing envelopes; certified or other
mail receipts; a printed copy of a Web site, chat room, or newsgroup
text; or similar items. Keep items in a safe location until you
are requested to provide them for investigative or prosecutive evidence.
If requested to provide evidence, send copies only, not originals.
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