Tuesday, February 18, 2014

The classic scam directed at a newbie seller

Newbie sellers face a variety of scams, but none so likely as this one.

Seller lists first item, either fixed price or auction.  The item is medium value, such as down-generation smart phone or some higher end sneakers.

Sure enough, the item sells.

Newbie seller confuses the fact that the item has sold, believing that the item has been paid for.  Newbie seller ships the item, and the scam is complete.

The deeper analysis.

Most straight out scams on Ebay are perped by young people who crave stuff they cannot afford.  This scam is by far the easiest to try, because it requires nothing more than a free email address and an Ebay account, to give it a go.  A Paypal account is not required. The crook will take shots at many items, hoping one might fall.

The defense.

BIN/IPR.  Buy It Now, Immediate Payment Required.  This means that in order to play at all, buyer has to pay for the item.  Someone with no money just can't get across that barrier.

Note that BIN/IPR requires seller to cross two hurdles.
1. Seller's Paypal account must be a "business" account.  This is free, and doesn't seem to have any purpose, but it does allow IPR.
2. By default, IPR is not shown on the sell your item form. When setting up payments, there is a "show more options" link.  The IPR option can be selected from the choices presented.

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