Things to take note to prevent e-auction fraud when a consumer participating in an e-auction

What is E-Auction?
Auctions that conducted online, offering services that enable sellers to post their goods for sale and allow buyers to bid on those items

Prevention
Escrow services
An independent third party holds a bidder’s payment in trust until the buyer receives and accepts the auction item from the seller.

User id verification
The process of identifying a person based on the information that provide by others user, they using a credit reporting program that helps e-auction to gather the useful information such as ID number, date of birth and etc.

Authentication services
It is a way to determining whether the auction item is fake or not, it normally perform by the trained and experienced expertise.

Feedback Forum
Most e-auction sites provide a feedback and rating feature that enables auction community members to monitor each other. This feature enables users to rank sellers or bidders and add short comments about sellers, bidders, and transactions.

Grading services
Grading is a way of determining the physical condition of an item, such as “poor quality” or “mint condition.”

Nonpayment punishment
E-auction sites implemented a policy against those who do not honor their winning bids. To help protect sellers, first-time nonpayment results in a friendly warning. A sterner warning is issued for a second-time offense, a 30-day suspension for a third offense, and indefinite suspension for a fourth offense.

Appraisal
Appraisers help buyer and seller to appraise the items by comparing the offer value by the seller with the market price.

Verification
Confirm the identity of an item through verification. For example, some collectors have their item “DNA tagged” for identification purposes. This provides a way of tracking an item if it changes ownership in the future.