Things to take note to prevent e-auction fraud when a consumer participating in an e-auction..
The internet provides auctions accessible to the general public. Anyone can easily participate in online auctions, either as a seller or a buyer, and the value of items sold ranges from a few dollars to millions. Auction is a market mechanism by which buyers make bids and sellers place offers. It is characterized by the competitive and dynamic nature by which the final price is reached. Auctions can rapidly disposal of items that needs liquidation or a quick sale, they offer trading opportunities for both buyers and sellers that are not available in conventional channels and they ensure cautious execution of contracts.

Methods of prevents e-auction fraud:

(a) Escrow Service. For item valued at more than $200 or when either the buyer or seller feels the need for additional security. eBay recommend escrow service. With an easy –to-access link to third party escrow service, both partners in a deal are protected. The buyers mail the payment to the escrow service, which verifies the payment and alerts the seller when everything checks out. At the point, the seller ships the goods to the buyer.

(b) 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.

(c) 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.

(d) Item verification which 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.

(e) Feedback Forum. The eBay Feedback Forum allows registered buyers and sellers to build up their online trading reputations. It provides users with the ability to comment on their experiences with other individuals