What Can You Do When Defrauded on eBay?

zeno_lee asks: "About 55 eBay buyers were defrauded by a single high volume ebay seller. I discovered all the victims by backtracking each transaction this guy had for the past month and contacting each one individually. Everyone lost between $400 to $1700 each. I then started an email group to organize action against him and to get our money back. This guy was particularly successful because he had positive feedback ratings before he decided to jump ship. " Systems like eBay are, as most have seen, extremely popular, but the one big shortcoming is that the system only works when buyers can trust the sellers. It's actions like this that break the system and if dishonest sellers can get away with fraud, auction sites will suffer. What options are there when consumers have been frauded on auction websites?

"Most of us followed the proper procedures. You wait 30 days to file a fraud claim on ebay. Then you have the option of getting $175 at most from eBay's insurance. It softens the blow, but for many it's not anywhere close to what they lost. Contacting local authorities hasn't accomplished anything nor has filing with the FBI. Many people who paid via PayPal did get a refund, but others paid via checks.

eBay has been one of the bright spots of the internet. As a NYSE listed company, you'd expect more to be done about helping customers. I hope this question comes as a warning to be more cautious on eBay or not to bid for items on ebay over $400 without escrow protection. I've learned my lesson not to do business with anyone who doesn't use paypal or billpoint. But regardless of what we learned, most of us feel helpless because eBay has not done more to get our money back. Any suggestions?"

Comments

Escrow Transactions

[Anonymous Coward]

If its more than the insurance limit, escrow all transactions.

The problem with Reputation...

[Ted V]

The problem with reputation is that it's just so easy to buy! Lets say I go place 20 bids on random crap and my $1 bid wins. Hey, I just got 20 points of reputation for $20! Then I can sell the crap back for maybe $.50 and I have 20 more points worth of reptuation! For literally $10 (and some free time), you can get 40 reputation points from ebay. The whole reputation system is flawed because untrustworthy people are allowed to give out good feedback. Who says that just because someone was honest with a $1 transaction that you can claim they are a "Good trader, very prompt"? What do you know about whether that person is really honest? Yet people give all the feedback to others because they want good feedback in turn.

Listing how much money was spent as part of the feedback doesn't really help either. Just set up a ring of ebay accounts, bid on each other's stuff, and have it sell for higher values. Sure, ebay gets a small cut, but all you're really doing is buy reputation from ebay which you use to screw other people. Suppose I forge $5000 of transactions on ebay and they take 3%. I just bought an enormous amount of reputation (trustworthy for $5000 in transactions) for $167. It shouldn't be that hard for an unethical person to go make $500/scam off of 20+ people.

Lets face it... Reputation doesn't mean anything.

-Ted

Escrow, with a twist...

[chhamilton]

Perhaps eBay should take a step forward here and make escrow transactions standard. If eBay itself would act as the escrow agent, and build it into their infrastructure, everybody wins. Typically, escrow fees are pretty tiny, and in reality, they make sense for most transactions.

If eBay set up a decent, reliable, and affordably priced system and made it inherent in the auction process, the masses would follow.

Wanna buy a bridge?

[MadCow42]

I'll sell you and each of your friends a bridge that they can call their own for the meer sum of $25 each.

After I've defrauded you on this, you won't feel the need to pursue it personally, because after all it's only $25. This is great, because I can now go and defraud the next guy, and eventually become a millionaire.

The point is, "these losses weren't too important" just don't cut it. You have some sort of responsibility to ensure that these people don't f**k over other people too. If everyone just rolls over because it's too much hassle, they'll never stop because it's profitable.

Please, for OUR sake, do NOT forget about these types of things, and pursue them as hard as possible, no matter how trivial $25 or whatever seems to you.

Thanks,
MadCow.