Sellers attempting fraud

Unfortunately commerce can attract fraudsters, and online commerce is no different. The most common attempt of fraud may occur when a seller lists an item they don’t intend to send but accepts money for it.

We also see criminal groups trying to lure members to trade outside eBay. They typically ask buyers to make payments using Western Union or a similar money transfer service because they are hard to trace.

To reduce the likelihood of seller fraud:

• Only use safe payment methods like PayPal. With PayPal your account information is hidden from sellers and you can be protected by PayPal Buyer Protection, which is increasing up to $20,000 from 17 June.
• Never use Western Union, MoneyGram or other instant wire transfer services which are prohibited on eBay.
• Be wary of fake Second Chance Offers. Always check your messages in My eBay for genuine Second Chance Offers.
• Never trade outside the eBay site. Items purchased outside the site may not be eligible for PayPal Buyer Protection.
• Get to know your seller – check their feedback profile before making a bid or confirming a purchase.
• Carefully read item descriptions and the seller’s terms.
• Remember: If an offer sounds too good to be true – it probably is.
• Don’t believe a seller who says that eBay is holding goods at its warehouse. eBay is a marketplace that brings together sellers and buyers. We never take possession of items from sellers or hold money from buyers.

Buyers attempting fraud

Although rare, a buyer may attempt fraud, usually by overpaying for an item with a fake cheque and asking sellers to send the goods with a credit for the amount overpaid. Sometimes a buyer may attempt to persuade sellers to transact outside the eBay site.

Even though buyer fraud is rare, to reduce the likelihood:

• Never trade outside the eBay site.
• Offer PayPal on your listings. It’s the preferred online payment method for buyers.
• PayPal Seller Protection is available to protect you in the unlikely event of a claim or chargeback arising from a buyer saying they did not receive their item or an unauthorised payment (eg from a stolen credit card).
• Wait for funds to clear before sending the item.
• Be suspicious of buyers offering you much more than the item is worth.
• When a buyer chooses to pay on pick up don’t accept international cheques or money orders. eBay recommends cash or bank cheque.
• Never send an item based on a buyer emailing you a receipt or "money transfer number (MTN)". This is another ruse and invariably will end up being fake.

Working with police and regulators to make eBay safe eBay has 2,000 Trust & Safety staff globally whose job it is to make sure eBay members stay safe online. We cooperate with law enforcement and regulatory agencies worldwide, 24 hours a day, seven days a week to help stamp out online fraud. Chances are, anyone attempting fraud on eBay will get caught. Find out how to contact eBay if you are in law enforcement.

Find out more Be smarter than the scammers, for more information read ASIC’s advice on scams and swindlers. Learn about other types of online fraud including identity theft and fraudulent emails.