Internet Auction Fraud

A significant proportion of reported Internet fraud cases involve Internet Auction Fraud and the non-receipt of an item that has been paid for.

The victim bids for an item through an Internet auction site and is subsequently notified that he/she is the successful bidder. Payment is made to the seller but the merchandise is never sent to the victim. In many cases, the seller defrauds a number of bidders at the same time.

To prevent becoming a victim of Internet Auction Fraud:

• Fully understand how the auction process works before bidding. Become familiar with the obligations of both the buyer and seller.
• Determine what actions the auction site will take if someone is defrauded.
• Learn as much as possible about the seller, including the review of feedback posted about the seller on the auction website.
• Make use of the auction site's escrow service.
• Make payment in a format that is traceable (cheque, money order, wire transfer). Do not pay in cash.
• Take into account where the seller is requesting the payment to be sent. If a fraud occurs, it may be much more difficult to recover funds and/or have the seller prosecuted if he/she is located in a different country.
• Consider insuring the purchase and shipment and consider delivery methods such as C.O.D. (cash on delivery). 

Non delivery of website purchases:
In these types of frauds, a purchase is made through a website, typically set up to appear to be a legitimate business. The buyer forwards payment for the purchase to the vendor but the product is never received. The website may disappear after a number of victims have been defrauded.

To prevent this type of fraud, consider these additional measures in conjunction with the ones listed above:

• Ensure the purchase is being made from a reputable source.
• Check with the Better Business Bureau in the vendor's area.
• Research the company/vendor to verify their legitimacy. Obtain the phone number and call it to verify it is in service and correct. Attempt to obtain an actual physical address for the vendor and be wary of post office box addresses.
• Do not make purchases from vendors who will not provide this type of information.

What to Do if You are a Victim of Internet Auction/ Website Purchase Fraud:
Residents of the Region of Waterloo who have lost funds in one of these scams should contact the Waterloo Regional Police Service to file a report.  Please report by phone at (519) 653-7700 in Kitchener, Waterloo, Cambridge.  All other areas may call (519) 570-3000.

If you have sent money through a money wire service, you will need to contact the agency to report the fraudulent transaction. Reporting this to the company will allow police access to the information regarding the destination of the funds.

NOTE: Although funds are sent to a specific location, some money wire services allow the funds to be picked up at other locations world wide, not just where it was sent. 

You should also submit a report with the Canadian Anti-Fraud Centre, which is operated by the Competition Bureau, RCMP and OPP.  The Canadian Anti-Fraud Centre tracks trends in fraud nation wide and is the national call centre for mass marketing fraud and identity theft.

Helpful Links:
Canadian Anti Fraud Centre