The number may seem grim for Web-based commerce. In 2004 in
Unites States alone, computer users logged in more than 207,000 Internet fraud reports to U.S. Internet Crime Complaint Center. If you look hard at this number, you may be astounded, and a good bit frightened, by implication. You may ask, “Is it really safe to buy and sell at an online site?” Put simply, answer is: yes. The Internet is an incredibly powerful tool for business, so you can’t pass it over just because of a few crooks and conmen—even if they do seem like they’re behind every pop-up window and banner ad. The truth is that you can create opportunity and make more money online than you could lose in fraud.
Better yet, you could lose absolutely nothing if you know warning signs of fraud and tricks to avoid danger during your Web-based business dealings.
Whether you’re looking to buy or sell goods online, first—and best—way to fight fraud is prevention. There are certain warning signs to watch for, which should set off a chorus of alarms and flashing red lights in your head. Don’t do business with this person! For buyers, these potential warning signs can be when a seller:
•asks you to pay through non-traceable avenues, such as Western Union or MoneyGram, or a third party, or via an overseas address. You should ask yourself—and seller—why he or she won’t accept payment options that are traceable and convenient for you.
•posts an image on his auction or classified ad that’s obviously from an outside source. Sometimes these images may not even match type of item, let alone brand, that ad features.
•sells a typically expensive item at cut-rate prices, which is a good indicator that it could be counterfeit.
•refuses to provide tracking numbers when you purchase an item. Tracking numbers are another way to trace a valid transaction.
•offers only excuses, instead of help, when your purchased item doesn’t arrive at your doorstep.
If you’re a seller, you ought to be wary of signs of a suspicious buyer, such as when a buyer:
•asks to pay only some of fee, offering to pay rest sometime in future. This is old excuse from Popeye’s friend Wimpy, who always could be heard saying, “I'll gladly pay you Tuesday for a hamburger today.” Wimpy never paid Tuesday.
•sends you a cashier’s check for more money than agreed price “by mistake.” In this scam, buyer then asks you to repay him difference by personal check, wire transfer, or money order—before you find out that cashier’s check didn’t clear. Believe it or not, this scheme works because cashier’s checks can be cashed before they bounce.
