286:
31:
2020:
1027:(FTC) takes responsibility for protecting consumers from unfair, fraudulent, and deceptive business practices. The FTC provides several resources for guidance on internet auction fraud and actively investigates fraud involving online auctions. According to the Internet Crime Report, online auction fraud ranks among the top complaints received by the
1057:
violation. The current mainstream online platforms act more as "intermediaries" and collect deposits from sellers who sell large-value products. With this approach the money is transferred to the seller's account after the ownership of the item is confirmed and transferred, ensuring the security of the transaction.
966:
seller in collusion with one or more bidders in the auction. In 2011, a bidder on eBay became the first individual to be convicted of shill bidding on an auction. By taking part in the process, an individual is sometimes breaking the law, depending on the relevant jurisdiction, for example breaking the
941:
The increasing popularity of using online auctions has led to an increase in fraudulent activity. This is usually performed on an auction website by creating a very attractive auction lot, such as a low starting bid level. Once a buyer wins a lot and pays for it, the fraudulent seller will either not
1043:
Fraud victims have volunteered to set up online communities The original intention of these communities is to comfort people, share their experiences for education and provide reliable intermediary services for certain traders. Some victims have also resorted to controversial methods of retaliation.
991:
It is difficult to spot a dirty technique being used by an anonymous or pseudonymous person in online auctions, but it is certainly doable. It can be revealed by examining a seller’s auction history and looking for an account which has bid on every or almost every auction of that seller. If there is
845:. Auctioneers and sellers would post notices describing items for sale, minimum bids, and closing times. As the popularity of online auctions grew, websites dedicated to the practice began to appear in 1995 when two auction sites were founded. The first online auction site was Onsale.com, founded by
1052:
Online auction platforms have made significant efforts to prevent fraud and protect their users. Once fraudulent behavior is identified, the platform can freeze the account of the relevant seller. But this can only passively punish accounts of people who have committed fraudulent behavior. Based on
995:
A shield can be spotted similarly to a shill. By doing a search of a person's won auctions, it can be found out whether or not there is another account participating in the same auctions without ever winning anything. If there is, it is possible that the person is using a shield to help them become
1008:
to sell stolen goods to unsuspecting buyers. According to police statistics, there were over 8000 crimes involving stolen goods, fraud, or deception reported on eBay in 2009. It has become common practice for organized criminals to steal in-demand items, often in bulk, then sell them online. It is
965:
Shill bidding is the most prominent type of online auction fraud where sellers themselves submit bids to increase the price of an item they have put up for sale, without intending to win. Shill bidding is also one of the most difficult types of fraud to detect, since it is usually conducted by the
908:
are used primarily to place multiple sales offers before potential customers. Multiple sellers compete to obtain a buyer's business, and prices typically decrease over time as new offers are made by sellers. They do not follow the typical auction format in that the buyer can see all the offers and
1056:
One of the most effective measures is the use of secure payment systems. These platforms force sellers to get payment through trusted payment gateways, thus providing additional security by acting as a middleman between buyers and sellers and increasing the cost to the fraudster of committing a
982:
Shield bidding is a technique whereby a buyer uses another account (called a "shield") to discourage other competitors from bidding by artificially increasing the price and then at the last moment withdrawing their bid to allow the actual buyer to win the auction with a lower price. Most online
896:
are also known as open outcry or raise prices. In live settings, English auctions are announced by either an auctioneer or by the bidders, and winners pay what they finally bid to receive the object. English auctions are the most common third-party online auction format and are known for their
1044:
Their actions include publicly revealing the personal information of identified scammers or disrupting transactions by blindly bidding up prices and then refusing to pay. These methods may inadvertently cause harm to ordinary sellers who are mistakenly identified as fraudsters.
873:
Online auctions offer advantages to users that traditional auction formats do not offer such as the use of automated bids. Along with these benefits, online auctions have greatly increased the variety of goods and services that can be bought and sold in an auction format.
932:
Critics compare this type of auction to gambling, as users can spend a considerable amount of money without receiving anything in return. The auction owner makes money in two ways: the purchasing of bids, and the actual amount made from the final cost of the item.
815:(B2C). B2C is forecast to have over a 1% annual growth rate, achieving a nearly 22% share of total global retail sales by 2024. B2B ecommerce gross merchandise value showed a similarly steady rate through 2019, as to mirror its retail B2C counterpart.
1022:
Governments have identified and taken steps to ensure the safety of online auctions and protect the interests of their citizens, typically by setting up relevant departments to deal with it. In the United States, the
860:
using a different approach to online auctions by facilitating person-to-person transactions. This was a popular choice with consumers, leading eBay to become the largest e-commerce site in the early 2000s.
869:
A core benefit of an online auction is the removal of the physical limitations of a traditional auction that require attendees to be geographically located together, which greatly reduces audience reach.
1779:
1035:(ACCC) provides information and advice on online auction fraud through its Scamwatch website. The ACCC actively monitors fraud in the online auction market and takes steps to combat it.
942:
proceed with the delivery, or send a less valuable version of the purchased item (replicated, used, refurbished, etc.). Protection to prevent such acts has become available, for example
897:
simplicity. The format is popular due to its ease-of-use in an online environment (since computers are capable of tracking and awarding an auction to the highest bidder from many bids).
925:(also known as a penny auction) requires customers to pay for bids, which they can increment an auction price one unit of currency at a time. The most notable bidding fee auction was
983:
auction sites do not allow withdrawal of bids except in specified circumstances, making this technique impossible to carry out except on sites where such a rule is not implemented.
825:
Despite the benefits of online auctions, the anonymity of the internet, the large market, and the ease of access makes online auction fraud easier than in traditional auctions. The
1696:
745:
2002:
Huang, Z., Chen, H., & Hsu, C. (2019). How online shopping platforms can prevent fraud: Evidence from China. Journal of
Business Research, 103, 221-230.
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eCommerce sales for businesses have been steadily increasing for years, and with the migration of virtually all transactions to digital due to the
1032:
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1715:
1955:
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822:, which researchers suggest is popular because it is a convenient, efficient, and effective method for buying and selling goods.
1700:
967:
500:
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804:, worldwide sales through ecommerce channels such as websites and online marketplaces increased overall in 2020 and beyond.
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handles the transaction, it has the ability to hold funds until a complaint is resolved and the victim can be compensated.
252:
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thought to be a safer option than fencing stolen items due to the anonymity and worldwide market online auctions provide.
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and accessed by internet connected devices. Similar to in-person auctions, online auctions come in a variety of
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Bertsimas, Dimitris; Hawkins, Jeffrey; Perakis, Georgia (January 2009). "Optimal bidding in online auctions".
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someone who meets those characteristics, it is most likely a shill using that account to increase the price.
360:
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685:
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Chua, C.E.H.; Wareham, J. (October 2004). "Fighting
Internet auction fraud: an assessment and proposal".
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may choose which they would prefer. Reverse auctions are used predominantly in a business context for
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Jap, Sandy (3 July 2003). "An
Exploratory Study of the Introduction of Online Reverse Auctions".
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the characteristics of the internet, these people only need to register new accounts.
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Bapna, R.; Goes, P.; Gupta, A. (2001). "Insights and analyses of online auctions".
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The ebay
Phenomenon: Business Secrets Behind the World's Hottest Internet Company
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829:(FTC) categorizes online auction fraud reports with online shopping categories.
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1989:
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Auction fraud makes up a large percentage of complaints received by the
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in May 1995. Onsale's business model had the company act as the seller.
1246:
883:
838:
794:
293:
22:
1956:"Target, other stores battle theft rings fencing stolen goods on Web"
1812:"A Run-Time Algorithm for Detecting Shill Bidding in Online Auctions"
1503:
Ockenfels, Axel; Reiley, David; Sadrieh, Abdolkarim (December 2006).
1081:
228:
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50:
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1471:"Managing Online Auctions: Current Business and Research Issues"
2019:
1816:
Journal of
Theoretical and Applied Electronic Commerce Research
947:
926:
812:
1716:"E-Buyer Beware: Why Online Auction Fraud Should Be Regulated"
837:
Online auctions originated on web forums as early as 1979 on
45:
1810:
Majadi, Nazia; Gray, Trevathan; Jarrod, Heather (Sep 2018).
853:
819:
1794:"FBI targets online auction sites' criminal constituency"
954:
1462:
818:
The largest consumer-to-consumer online auction site is
1971:
1969:
1223:
1675:"Is Swoopo Nothing More Than a Well-Designed Gimmick?"
1502:
1697:"Red Tape - An iPad for $ 2.82, or illegal gambling?"
1966:
1919:"Stolen-Property Purchases Leave Ebay Buyers Burned"
1468:
1139:
807:There are two primary markets for online auctions:
1004:Online auction websites can be used by thieves or
1627:"The Big Money: The Pennies Add Up at Swoopo.com"
856:was founded by French-Iranian computer scientist
2032:
1809:
1595:
1469:Pinker, E. J.; Seidmann, A.; Vakrat, Y. (2003).
1176:"General Game Playing B-to-B Price Negotiations"
1173:
1033:Australian Competition & Consumer Commission
970:which carries out a fine of up to ÂŁ5,000 in the
1163:. Louisiana: Southeastern Louisiana University.
1689:
1399:
986:
864:
2004:https://doi.org/10.1016/j.jbusres.2019.04.023
1707:
841:and The Source, as well as through email and
746:
246:
1174:Friedrich, Michael; Ignatov, Dmitry (2019).
797:, with different bidding and selling rules.
1975:
1756:. OnlineAuctionReviews.org. Archived from
1548:
1125:: CS1 maint: location missing publisher (
753:
739:
253:
239:
1837:
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1562:
1512:
1413:
1373:"Auction of Collectibles on the Internet"
1334:
1332:
1330:
1245:
1226:Journal of Revenue and Pricing Management
1110:
1940:"Ebay: Brisk Bidding in stolen goods".
1805:
1803:
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1012:
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1713:
1677:. Technologizer.com. 17 September 2008
1650:
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1601:
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1113:E-Collaboration und E-Reverse Auctions
916:
1307:
1201:"eCommerce Sales & Size Forecast"
1800:
1303:
1301:
1158:
1862:"Man fined over fake eBay auctions"
1140:Engelbrecht-Wiggans, Peter (2006).
888:
13:
1780:"What is PayPal Buyer Protection?"
1732:10.1111/j.1744-1714.2002.tb00306.x
1653:"Penny Auctions: They're Gambling"
1496:
900:
14:
2062:
2012:
1880:"Warning over eBay bidding trick"
1604:"Profitable Until Deemed Illegal"
1602:Atwood, Jeff (11 December 2008).
1308:Banks, Michael (20 August 2006).
1298:
977:
968:European Union fair trading rules
2018:
1894:"The Hazards of Online Auctions"
1310:"The Very First Online Auctions"
960:
944:PayPal's buyer protection policy
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29:
1996:
1948:
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1911:
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1829:10.4067/S0718-18762018000300103
1796:. networkworld. 31 August 2007.
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1029:Internet Crime Complaint Center
1925:. 11 June 2002. Archived from
1699:. May 14, 2011. Archived from
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1115:. Saarbrücken. pp. 16–25.
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16:Auction held over the internet
1:
1720:American Business Law Journal
1625:Gimein, Mark (12 July 2009).
1490:10.1287/mnsc.49.11.1457.20584
1097:
1017:
1651:Atwood, Jeff (25 May 2009).
1038:
7:
1450:Corporate Finance Institute
1060:
1047:
987:Spotting Shills and Shields
865:Benefits of Online Auctions
10:
2067:
1898:Garage Technology Ventures
1882:. BBC News. 20 April 2010.
1573:10.1509/jmkg.67.3.96.18651
881:
832:
1402:Communications of the ACM
1341:"The eBay Business Model"
1183:CEUR Workshop Proceedings
1142:E-Sourcing in Procurement
1111:Kleusberg, Peter (2009).
1092:Private electronic market
721:Private electronic market
64:Retail goods and services
1286:Federal Trade Commission
1025:Federal Trade Commission
996:successful in auctions.
936:
877:
827:Federal Trade Commission
416:Generalized second-price
1339:Bunnell, David (2001).
1159:Wyld, David C. (2012).
411:Generalized first-price
1714:Albert, M. R. (2002).
1530:Cite journal requires
843:bulletin board systems
466:Simultaneous ascending
1923:San Jose Mercury News
1424:10.1145/384150.384160
1349:John Wiley & Sons
1077:Online travel auction
501:Vickrey–Clarke–Groves
206:Live support software
2027:at Wikimedia Commons
1551:Journal of Marketing
1161:REVERSE AUCTIONS 101
1013:Interests protection
1000:Sale of stolen goods
884:Auction § Types
813:business to consumer
809:business to business
381:Discriminatory price
2046:American inventions
1990:10.1109/MC.2004.165
1929:on 25 January 2013.
1760:on 26 February 2014
1631:The Washington Post
1238:10.1057/rpm.2008.49
923:bidding fee auction
917:Bidding fee auction
852:In September 1995,
691:Revenue equivalence
376:Deferred-acceptance
150:Trading communities
140:Comparison shopping
1478:Management Science
1378:The New York Times
1351:. pp. 71–81.
1282:public.tableau.com
1146:Management Science
1087:Unique bid auction
771:electronic auction
461:Sealed first-price
2051:French inventions
2023:Media related to
1960:The Seattle Times
1505:"Online Auctions"
1446:"English Auction"
802:COVID-19 pandemic
763:
762:
541:Cancellation hunt
491:Value of revenues
361:Click-box bidding
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1072:Auction software
906:Reverse auctions
894:English auctions
889:English auctions
755:
748:
741:
686:Price of anarchy
536:Calor licitantis
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187:Customer service
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1754:"Auction Scams"
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1655:. Coding Horror
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1609:
1607:
1606:. Coding Horror
1600:
1596:
1564:10.1.1.196.9582
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1314:Ecommerce bytes
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1278:"Fraud Reports"
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901:Reverse auction
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779:virtual auction
759:
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665:
570:
566:Tacit collusion
515:
431:Multi-attribute
259:
222:Purchase-to-pay
164:Mobile commerce
145:Social commerce
131:Online shopping
56:Streaming media
38:Digital content
17:
12:
11:
5:
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2041:Online auction
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2025:Online auction
2014:
2013:External links
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1868:. 5 July 2010.
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1726:(4): 575–644.
1706:
1703:on 2011-05-14.
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1148:. p. 581.
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789:held over the
767:online auction
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696:Winner's curse
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1839:10072/381662
1822:(3): 17–49.
1819:
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1758:the original
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1701:the original
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1484:(11): 1457.
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616:Domain names
471:Single-price
371:Common value
117:Ride-hailing
92:Distribution
76:
1764:12 December
1247:1721.1/4006
1031:(IC3). The
911:procurement
331:Anglo-Dutch
314:Bidding fee
196:Call centre
107:Marketplace
87:DVD-by-mail
72:Advertising
2035:Categories
1848:2097634393
1455:2022-11-08
1408:(11): 42.
1291:2023-01-30
1210:2023-01-30
1098:References
1018:Government
882:See also:
839:CompuServe
811:(B2B) and
586:Algorithms
486:Unique bid
441:No-reserve
229:Super-apps
23:E-commerce
1782:. PayPal.
1740:153954084
1681:3 January
1659:3 January
1610:3 January
1559:CiteSeerX
1410:CiteSeerX
1264:214492358
1121:cite book
1082:Tendering
1039:Customers
775:e-auction
651:Virginity
506:Walrasian
436:Multiunit
346:Brazilian
326:Amsterdam
201:Help desk
178:Ticketing
1978:Computer
1903:14 April
1866:BBC News
1844:ProQuest
1636:26 April
1589:16065348
1581:30040539
1319:14 April
1260:ProQuest
1189:: 89–99.
1061:See also
1048:Platform
791:internet
785:) is an
783:eAuction
726:Software
716:Ebidding
641:Spectrum
606:Children
576:Contexts
456:Scottish
426:Knapsack
421:Japanese
351:Calcutta
278:Auctions
270:a series
268:Part of
112:Pharmacy
77:Auctions
51:Software
1256:9033989
833:History
787:auction
621:Flowers
611:Players
601:Charity
561:Suicide
556:Sniping
551:Rigging
531:Shading
521:Bidding
496:Vickrey
451:Reverse
401:Forward
396:English
309:Chinese
304:All-pay
173:Payment
102:Grocery
82:Banking
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1006:fences
948:PayPal
927:Swoopo
769:(also
706:Online
671:Theory
646:Stamps
636:Slaves
511:Yankee
406:French
386:Double
356:Candle
319:Dollar
155:Wallet
122:Travel
1736:S2CID
1585:S2CID
1577:JSTOR
1474:(PDF)
1432:57631
1428:S2CID
1252:S2CID
1179:(PDF)
946:. As
937:Fraud
878:Types
795:types
781:, or
661:Wives
626:Loans
591:Autos
391:Dutch
294:Types
46:Ebook
1905:2019
1766:2012
1683:2013
1661:2013
1638:2010
1612:2013
1536:help
1387:2019
1353:ISBN
1321:2019
1187:2479
1127:link
854:eBay
820:eBay
656:Wine
631:Scam
546:Jump
446:Rank
1986:doi
1834:hdl
1824:doi
1728:doi
1569:doi
1509:doi
1486:doi
1420:doi
1242:hdl
1234:doi
955:FBI
765:An
596:Art
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