How to Prevent Internet Fraud When Selling Online

Internet fraud has never been higher, and with so many unemployed people looking for ways to make money online, Internet fraud can only get worse. Although the Internet is a blessing in many ways, it also makes it possible for unscrupulous scammers to defraud individuals of their hard-earned money. One of the latest fraud techniques involves responding to ads of items placed for sale online. It’s important to know how it works in order to protect yourself against Internet fraud. Here's how.

Difficulty: Easy

Instructions

1. Look out for Internet fraud when selling high-ticket items online. If you place an ad on sites such as craigslist or eBay, there’s the possibility that a scammer may respond to your ad, particularly if it's $100 or more.

2. Delete responses from interested buyers that want you to ship the item to them. In addition, the scammer may offer to pay you a fee to remove the ad and ensure that no one else buys the item. He’ll ask for your physical address to send you a check and assure you that he’ll pay for the shipping.

3. Keep your personal information private. If you’re caught off guard and give out your mailing address, be leery if you receive a check from an interested buyer. Make sure that it’s legitimate. If the check’s amount is greater than the cost of the item you’re selling, it's an attempt to commit Internet fraud. Cut off all communication with such individual.

4. Keep in mind that scammers will explain the difference between the item's price and the check's amount with a story like the following: "The secretary mistakenly included the fee that should have gone to the movers or shippers (in the case of a big item)". You’ll receive instructions to forward the difference to the movers. In reality,if you were to follow the instructions, you would be sending the money to the scammer, and you would end up as a victim of Internet fraud.

5. Protect yourself and don’t deposit any checks or money orders. Once the bank discovers the fraud, you’ll be responsible for paying the full amount. It could potentially result in legal problems for you, as well.

6. Report Internet fraud to the National Consumers League’s Fraud Center (NCL’s Fraud Center). It handles telephone and Internet fraud complaints.

Tips & Warnings

• Practice fraud prevention at all times. Internet fraud when you least expect. Scammers respond to any type of ad, even those placed in newspapers.

Resources

• NCL’s Fraud Center
• Consumer Fraud Reporting

[Toanjalo]

on 12/28/2008 Great tips. I have received emails from scammers using craigslist myself.