Avoid Craigslist and EBay Scams and Cons

Everybody likes the idea of earning a little extra money, and the advent of eBay and Craigslist has made that possible for some. What is unfortunate is that unscrupulous people also like to make money, and they will take advantage of those who are not careful. Thieves and scammers will go where the fishing is good and the prey is easy. For those that want to cash in on the benefits of online business, there are some simple rules (suggestions really) that will help avoid the pain of being taken advantage of.

For this article, the most popular scam is examined. The one that seems to be the most pervasive is a take on a ruse that predates the popularity of the Internet. The con works like this: An individual (the victim) lists an item for sale. Another individual (the reprobate or scumbag as they are better known) poses as a buyer for said item. Because of the auction nature of eBay, this seems to be more popular on Craigslist; apparently the crook cannot be bothered to go through the whole bidding process. The thief in buyer's clothing now prepares to pay, and here is where the scam comes in. A check, or some similar sight order, is sent to the seller in an amount higher than agreed upon. Instructions are given by the thief that the check is to be cashed, and the difference sent via Western Union, or a similar money wiring service. Relax, you do not have to salute the red flag that was raised, just beware.

One might ask, "Who would fall for that?" One would be surprised how convincing the scammer can be. There is usually some type of story with the check to legitimize it. What makes the situation worse: banks usually accept the checks from the account holder. This is not because the bank wants to hurt you, or that the bank is naive. Banks have account agreements that hold the account holder responsible for what they present. The checks look legitimate on their face, and generally the teller processes so many transactions that it is impractical for them to be on the lookout for what may or may not be unusual for that one customer. The con artist is also persistent, claiming now that the seller has the check, they MUST send the money. This is done to induce feelings of guilt in the honest seller, who may succumb, trying to do what is right.

Craigslist has some suggestions about this, as does eBay:

1. Deal locally; Craigslist rightly claims that 99% of scams can be avoided. Physical safety is the topic for another article.

2. Never wire funds, unless...there is no unless; NEVER wire funds.

3. Never give out financial information, such as social security number, bank account information, or PayPal information.

What do you do if you have already become the victim of a scam? First, contact your local police department (non-emergency line); you will find that they have dealt with this before and are a wealth of information. Bear in mind that there is not a great deal that can be done, once the money is received by the villain. It is worth the effort to follow through by contacting the FTC (Federal Trade Commission) and the Internet Fraud Complaint Center.

Using some common sense and online "street smarts," it is easy to avoid being taken advantage of through scams. If something doesn't seem right, or if you are just not sure, check with the site's security or fraud prevention page. Craigslist and eBay can be very lucrative and safe, if you just follow those simple suggestions.

Additional Sources:

Security and Resolution Center, eBay

About>Scams, Craigslist