Half of all Internet fraud complaints are related to online auctions, according to the Internet Fraud Complaint Center. Many scams begin when a seller posts a high-ticket item on an auction site and then doesn't accept a credit card payment, said Ed Albro, senior features editor at PC World. The buyer is then asked to send a money order to a post office box instead. In other cases, products are grossly misrepresented. A computer touted as the newest and fastest may be a 1986 antique when it shows up on your doorstep.
Cautious consumers can get a good deal.
Reputable vendors are worth the extra cost. Albro suggests reading the feedback sections on auction sites, which typically list the seller and all the comments submitted by buyers. Some scam artists have friends and family submit false positive feedback, so most online auctions now require that feedback be from somebody with whom the seller has completed a deal. Negative comments are a sign that you may not want to bid with that seller. If it's a new seller with no feedback, you're taking a larger risk when buying a big-ticket item.