Fraud - What to do about it

Friday 20 November 2009
by SaleHoo.com

Hi!

Something's up...dealings with the buyer aren't going as they should...you suspect fraud...can you do anything?

Welcome to the 18th SaleHoo newsletter on Internet Fraud!

Believe it or not, fraudsters get away with it on the Internet less than elsewhere. In some ways, the Internet makes tracking easier than otherwise.

But that isn't to say that you can relax completely. Any fraud problems you might encounter will still take a great deal of your time to follow up, so as they say, prevention is the best cure.

Protect yourself by:

• Describing your item as thoroughly and accurately as you can. Include pictures, measurement and, most importantly, any flaws or damage.
• Include your return policy in your auction listing. This helps your case in the event that a buyer demands a refund but doesn't return the item first.
• Ship only to the buyer's address listed on the Transaction Details page.
• Retain proof of shipping and delivery.
• Keep as much information as you can about the transaction and your customer, including emails and other correspondence. Retain it for at least a year after the transaction has been completed.
• Make every effort to know your customer and respond promptly to any customer service requests.

But if the worst occurs, and you suspect you've been had, then these are your options for reaching a resolution.

Fraud Resolution Options

1. Try phoning the buyer and resolving it over the phone. Telephone diplomacy can be highly effective in dissolving a tense situation.
2. Contact Square Trade www.squaretrade.com an online dispute resolution service. They act as a go-between with you and the buyer - meaning you can avoid getting involved in a nasty argument.
3. If it is a payment issue, contact the service that was used to send or receive payment.
4. Contact local law enforcement in your area as well as the buyer's area if you suspect fraud with intent.
5. File a complaint with the Internet Fraud Complaint Center http://www.ic3.gov/. Give as much information as you have to help them resolve the situation.
6. Contact your shipping company. If you have shipping insurance, then a missing/damaged parcel should be covered. You should also retain proof of delivery where possible.
7. File an Unpaid Item with eBay to request a Final Value Fee credit.

*** Tip ***

Remember that eBay only provides a forum to buy and sell: it doesn't get involved in disputes to provide mediation, collect payment, or force someone to complete a transaction. Your safety is first and foremost up to you.

Purchase with Fraud Intent

One area that eBay does involve itself in is fraud allegations. This isn't for your benefit though, but rather to protect the eBay marketplace itself. A high incidence of fraud would be a death sentence to eBay.

So, if you think that a buyer purchased your item with intent to fraud, then you can report the buyer on the eBay Receiving Payments page.

These are the circumstances in which you can contact eBay and report the buyer:

• If the buyer paid or attempted to pay with a stolen credit card.
• If the buyer sent an online or credit card payment that was denied, withheld or not received after you shipped the item.
• If the buyer sent a check or money order that could not be cashed.

See http://pages.ebay.com/help/tp/isgw-fraud-defrauded-sellers.html for more information and helpful links.

Workbook

1. Have you included a return policy in your listing? If not, add one now.
   For example: "Items must be returned unopened within 7 days of arrival."
   OR
   "All Sales Are Final. No returns or refunds available. All the products we ship are quality controlled to ensure they ship in perfect condition. Only defective merchandise is subject to exchange within 28 days of delivery."
   
2. If you haven't already, set up a system for filing all correspondence with buyers. It must be able to be stored for at least a year.

Useful Links

• Return policies
• eBay Defrauded Sellers help page
• Internet Fraud Complaint Centre
• Square Trade
  

Next week is the last in the introductory series of newsletters. We'll be looking at the second chance offer, before moving on to more advanced topics in the 20th newsletter. Until then, have a good week and happy trading!

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