There are so many
scams at online auctions. First is the escrow scam: the seller
requests that you use a certain escrow company to pay for your
item. But the escrow service is a fake in cahoots with the
seller -- you're out all your money.Second is
the phantom seller with the great (fake) bid history. When you
try to check up on this seller's history you will see nothing
but praise -- too bad all the praise has been posted by the
seller and his friends. Again, you're out all your money.
This next one is for sellers: the fake cashier's
check. This scam bears a strong resemblance to the Nigerian
letter scam. Here's how it happens: You get an order from
someone who wants to pay by cashier's check -- they are usually
outside of the United States. You deposit the check. The bank
tells you the check has cleared and you send the items. Several
days later, you'll find out the check really didn't clear
(oops!) and the bank holds you responsible for the balance. In
another twist, you'll get a cashier's check for more than the
amount you requested. The buyer will ask you to refund the
difference. You do -- then the cashier's check bounces and the
bank holds you responsible for the balance.