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You can't believe it. Someone has emailed you about your PS3 auction, and he's offering to wire you $200 extra to have it shipped to Nigeria! Awesome! But before you start salivating, consider the possibility that you're about to become a victim of buyer fraud.

Any time you put a valuable item up for auction on a site like eBay, you become a target for scammers and frivolous bidders. Frivolous bids can be placed by jokesters, or on a whim. Some might be placed by kids fooling around. If one of these bidders ends up winning the auction, they will often ignore attempts to contact them. If this keeps happening to your valuable auctions, start keeping an eye on the bidders who stay on top in the early days of the auction. Contact them ahead of time to verify that the bid is valid. If they do not respond to all reasonable attempts to contact them, eBay rules state that you are free to cancel their bid. For repeat offenders, eBay allows you to block any particular usernames from bidding on your auction.

While frivolous bidders don't usually intend harm, scammers do. A scammer might contact you, often after they have won the auction, telling you that they need the item shipped immediately overseas. However, they will wire you the amount they owe, plus some extra, to facilitate this favor. Other scammers might give you a similar story, but request to pay by check or money order.

Scammer #1 will request your bank information to wire you to the money. Whether or not you ship the PS3, he now has your account and routing numbers to do with as he pleases; if you do ship the item, it's just a bonus.

Scammer #2 will send you a bogus check or money order. When you try to cash or deposit it, you'll get in trouble with your bank. Meanwhile, the scammer has a free PS3.

So, how do you avoid being a victim?

First, don't sell expensive items on eBay. See if any of your friends, acquaintances, or neighbors is interested in buying. Use Facebook's Marketplace to find local buyers, or take out a classified ad in the paper. Use a local consignment shop. If you belong to any online communities or forums that allow this sort of thing, try advertising it there. The smaller your audience, the smaller your chances of being scammed.

Second, never ship an item until you have received payment. This is basic eBay etiquette; don't let anyone talk you out of it, no matter how much money they're willing to pay upfront. Don't let greed get in the way of a fair transaction.

Third, restrict the payment options you receive. And be firm about it! Paypal-only is acceptable these days. If you want to give options to conscientious Paypal objectors, say that you will accept checks or money orders, but will only ship after the payment has cleared. When receiving such payments, especially personal checks, take them to your bank in person and explain that you want to make sure your account is not flagged for trying to cash a bogus check. For large amounts or suspicious checks, call the financial institution on the check (making sure to get the number from a reliable source, NOT the check itself) to verify that it will clear.

Avoiding buyer fraud on eBay is simple enough if you follow these steps.

Learn more about this author, Liz McD.
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