How to avoid the pitfalls of buying from online auctions and classified ad marketplaces
Tens of millions of people use eBay every week and, as with any busy marketplace that attracts a lot of people, there will always be some unscrupulous elements that are trying to separate you from your money. But how do you know what to look for? And how do you make sure you have the best chance of getting your money back?
We’ve put together a simple guide to protect you when you step out into a busy online marketplace – whether it’s eBay or any other listings site.
General Principles
Keep a record – Make sure you make a note of (or save) all correspondence with the seller or buyer. That way, if something goes wrong and you need to complain, you’re armed with plenty of evidence.
Use Paypal where you can – Even though Paypal charges 20p plus 3.4 per cent of the sale price, you have a better chance of getting some form of refund. In fact, even in cases of fraud, if you pay by a simple bank transfer you might not get your money back. There is some protection if you use a credit card for purchases over £100 under Section 75 of the Consumer Credit Act and, for debit card purchases, there is the option of attempting to get a chargeback from your bank.
If it’s too good to be true, it probably is – Be suspicious of anything that is obviously far too cheap. It could be fake, stolen, or even just a ‘phishing’ scam to get money from you for a product that doesn’t really exist.
Do your research – Have a look at the prices of similar products, or search the internet for stories of similar scams, or even just ask friends.
Ask plenty of questions – Don’t be embarrassed to ask about the product. If it’s a genuine sale, the seller will have no problem in answering any questions you might have. If something doesn’t feel right to you, walk away.
There’s more protection if you buy from a trader rather than a private seller – If you buy online from a business, then they are bound by the Consumer Act 2015 and Distance Selling Regulations. Part of this is that you have 14 days to return any goods you’ve bought online. If you buy something from a private individual, however, this does not apply.
If you feel you’ve been scammed, tell someone – report it to the site owners, the police and Action Fraud.
The Big Buy – Cars
eBay has hundreds of thousands of cars listed for sale, and sites such as Auto Trader and PistonHeads.com and Gumtree host ads for even more. Used cars on these sites can be sold by private sellers or traders, and the vast majority are honest ads, but there are a small minority of frauds out there.
Here’s how to spot them…
Price is King – Find out the market value of a vehicle. If it’s suspiciously cheap, there is more than likely a reason.
Fake Pictures – Fraudulent ads will often ‘steal’ a set of images from another genuine advert. One way to test this is to right-click on one of the images, select ‘copy image link’ and paste that into a Google search. This will then reveal if the image is on another advert somewhere and therefore whether the ad is genuine or not.
Fake Escrow – A genuine escrow service allows sellers to send goods safe in the knowledge that funds exist and are being held safely until the goods have been delivered. As a scam, however, a fake escrow site run by the ‘seller’ often asks for money to be paid into a specific service before the seller will bring the car for you to view. Costs of shipping the car from one country to another, or problems with timewasters are commonly used excuses.
The Right Place – Whether you’re buying from a trade seller or a private individual, make sure you’re comfortable with the location of the purchase. It seems obvious, but an anonymous car park or a pub is far from safe. The seller’s house or garage forecourt is a much more secure location to do business, as you have some means of contacting them if things go wrong.