Taken from APBNews.com and other sites

  These are articals were people have been scammed out of thousands of $$$$$. Most of the scammers used Ebay to pull these scams. This page was setup so people would be aware of activities like this. It happens! Hell, it happened to me! I was ripped off 3 times from 3 different people and I am real cautious who I deal with.

  Enjoy the reading!

Dec. 27, 2000

LOS ANGELES (AP) -- Federal authorities arrested one man and were searching for another suspected of ripping off buyers on eBay, the largest Internet auction site.Assistant U.S. Attorney Dorothy L. Shubin said the two unrelated cases were among the first criminal prosecutions in the booming online auction business.

George Arthur Cruz of Artesia and Hen Ben Haim of Encino allegedly offered dozens of computers and other goods on eBay, then took the winning bidders' money and sent them nothing. They defrauded buyers out of more than $110,000, according to federal indictments made public Tuesday.

"It's an old-fashioned fraud using new technology: promising products and not delivering," said Shubin. "But using the Internet gives the defendants the ability to reach victims all across the country."

Face mail fraud charges

More than 240 alleged victims mailed checks or money orders to the Los Angeles area after submitting winning bids for items including computers, camera equipment, musical instruments and replicas of football helmets. U.S. postal inspectors intercepted checks and money orders totaling $34,000, Shubin said.

Cruz, 31, and Haim, 27, were indicted last week by a federal grand jury. Authorities arrested Cruz, also known as Richard Cortez, early Tuesday at his workplace in Norwalk. Cruz, who could not be reached for comment, posted $70,000 bail and is set to be arraigned next week on 13 felony counts of mail fraud and one felony count of money laundering. He faces up to 75 years in federal prison.

Authorities have been unable to locate Haim, also known as Shay Albaz. Haim was indicted on eight counts of mail fraud and faces up to 40 years in prison.

A list of aliases

According to the indictments, Haim and Cruz used aliases on eBay; Cruz registered under such names as John Reese, Oscar Gamboa, Jon Wolf, Dean Liu and Thomas K. Connors. In posting the auction listings, he "concealed the fact that he either did not possess the merchandise he was offering for sale, or that he did not intend to deliver the merchandise to the purchasers," the indictment said.

An eBay representative said fraud is rare on the Internet auction site. Among the safeguards eBay has set up, bidders can read evaluations of sellers by previous buyers, and an escrow account can be used to hold payments until the goods are delivered. The company also offers dispute resolution and up to $200 in free insurance.

Market research studies have estimated that online auction sales will total about $25 billion by 2005. EBay commands a large portion of the business, but hundreds of other Internet sites also offer online auctions.

Allegedly Put Nonexistent Items Up for Bid

March 17, 2000

By Todd Venezia

KEY LARGO, Fla. (APBnews.com) -- A Florida man scammed online buyers out of more than $50,000 by putting up nonexistent items for auction on eBay and Yahoo, authorities said.

Charles Sweet, 32, of Key Largo allegedly put up fictional baseball cards, knives and computer equipment for bid online. Investigators said he cashed checks sent by the high bidders, but never sent any merchandise.

The Monroe County Sheriff's Department says Sweet pulled his simple scheme on people from California, Georgia, Illinois, Nebraska and Pennsylvania.

Authorities said they unraveled the scam after a victim from Springfield, Ill., e-mailed the sheriff's office and said he had been cheated on an eBay transaction.

The victim said he sent a check for $1,235 to a post office box in Tavernier but never got the 12 boxes of Ultimate Victory Baseball Cards he thought he had purchased.

Box rented by girlfriend

The sheriff's department said the post office box had been rented by Treasure Clayton, a Key Largo woman, and that the paperwork listed a false address. But investigators found a domestic violence report that listed an address for Clayton and her boyfriend, Sweet.

"At that point, Detective [David] Carey began getting more e-mail complaints from victims across the country," the department said in a written statement. "Two more on Friday, 11 more on Monday -- they just kept pouring in."

Sweet was arrested Tuesday and charged with one count of grand theft. More charges could be forthcoming, police said. He is being held on $75,000 bond, with the stipulation that he must be able to prove he legally acquired any money he might put up to free himself.

Neither eBay nor Yahoo has returned telephone calls. Sheriff's officials said both online companies suspended Sweet, who traded under the names "Dove Key Traders" and "Key Comber Traders," as soon as customer complaints started mounting.

EBay Targets Bogus Bidders

Plans to Take Credit Card Numbers on Big-Ticket Items

March 16, 2000

By Carol Huang

NEW YORK (APBnews.com) -- Remember the $40,300 bid for Gov. Jesse Ventura's Porsche or the $10 million offer for a millennium Internet domain? How about the 13-year-old from New Jersey who bid $900,000 for an antique bed said to have belonged to Canada's first prime minister?

All were bogus offers on legitimate merchandise auctioned online by eBay. To stop these hoaxes, eBay plans to begin asking bidders to provide a credit card number when their offer tops $5,000 on any item up for sale.

The company said it will introduce the policy over the coming weeks to deter pranksters as well as careless bidders who make offers that they find themselves unable to fulfill.

"We think it will be another reminder, so someone will think twice before entering a bid above $5,000," eBay spokesman Kevin Pursglove said today. "Should they retract their bid or if it turns out to be a prank bid, we'll have another tool for identifying those individuals."

41 million auctions in three months

Since Pierre Omidyar started eBay in 1995 as a side business out of his house, the company, based in San Jose, Calif., has become the most successful Internet auction site. In the last three months of 1999, buyers paid $901 million in 41 million auctions.

While the vast majority of the auctions are legitimate transactions, the site has been stung by several high-profile hoaxes.

In January, eBay reported that the two highest bids for the Year2000.com Web address being offered for sale by Canadian Y2K specialist Peter de Jager were pranks, after offers reached a stunning $10 million.

The New Jersey teen, using his parents' credit card, also offered $1.2 million for a Florida medical office along with his bid for the antique bed. In a case in which the merchandise was also illegal -- if it existed -- there were $10 million bids on 500 pounds of marijuana labeled "Holland's Best" that was put up for sale in September.

Hoax sold eBay for $1.25

That same month, eBay itself was targeted in a hoax after someone put the site up for sale in one of its own auctions, soliciting a high bid of $1.25.

The new credit card policy on bids of $5,000 or more follow other rules that eBay has introduced over its five-year life to try to protect its users from fraudsters and pranksters and to ensure the integrity of its transactions.

Last week, the site introduced "ID Verify," a voluntary program for users who want those on the other end of a deal to know they are making a legitimate offer. Users fill out a form with information on themselves that is destroyed after verification by an independent company. Users get icons placed beside their screen names so that other users can see, Pursglove said.

The site has a "Community Watch" program that allows users to report suspicious postings. Users also can look up what other buyers have said about a particular seller before making an offer on merchandise.

Selling your virginity, soul or kidney

Last fall, eBay began requiring new users to give a credit card number before putting an item up for sale. Pursglove said there's been "noticeable drop-off" on fraudulent and prank sales on the site since that policy was introduced, but he declined to provide a specific figure.

The site has had a number of prank sales, including one man who offered his virginity up for sale, another who offered to sell his soul and someone else who offered a kidney.

"Under federal law you cannot sell a human organ or a body part," Pursglove said. "The listing of the item was a prank. We also came to the conclusion that the listing was a violation of federal law."

The site lists a number of other items that cannot be sold because of federal or state laws, including liquor, tobacco and tickets for sporting events. In the past, it has also banned old graveyard tombstones, stuffed birds and human sperm.

Dec. 3, 1999 By David Noack

Online Shoppers Worry About PrivacyNEW YORK (APBnews.com) -- Just as cybershoppers head to the nearest e-retailer for the latest book or CD-ROM, there are those who bid on collectibles and hard-to-find items online.

But is it safe to shop at a virtual auction? For the most part it is, experts say, but consumers need to be aware of the differences between dealing with an electronic store and what amounts to a private sale, much like a classified ad.

Consumers have two basic gripes when it comes to online auctions, say experts: Shoppers receive nothing after making a successful bid and paying for an item, or they get something other than what they wanted.

In either case, these kinds of concerns have raised the stakes for online auction houses to do a better job of policing themselves and toughening their terms of service agreements.

Know value or typical price

Items at Internet auctions tend to fall into three categories -- refurbished, closed-out or used. However, in some cases, don't expect to get an operating manual for the item, and make sure to know what sort of warranty is attached to the product bid on. Also, you may be able to find a better deal elsewhere.

Mark Williams, director of the Tennessee Division of Consumer Affairs, said online bidders also should check out the value or cost of an item, whether returns are allowed and what are the shipping costs and who pays, and they keep a record of all transactions and e-mails.

"Most problems are similar to those of general mail-order complaints. So far in 1999 we've received 107 complaints, and this includes online auctions," Williams said.

Avoid vague item descriptions

Oliver Muoto, vice president and co-founder of Epicentric Inc., which makes corporate Internet portal software, said that while online auctions are the riskiest kind of cybershopping, there are steps consumers can take to protect themselves.

He suggests avoiding "high-value" items that cost a lot of money or those with vague descriptions.

"Stick with the bigger, more reputable online auctions, such as Amazon.com, eBay, OnSale and Yahoo!. Their anti-fraud departments can help out in case of a dispute or fraud case," Muoto said.

Traci VanHorn, a spokeswoman for FairMarket Inc., a company which operates auctions at several sites, such as Excite, Outpost.com, and ZDNet, among others, said it's important for consumers to understand the policies of the auction sites.

"We have a fraud-prevention team that ensures products are authentic and not pirated, and that bids are real," said VanHorn.

Ebay cancels fishy accounts

On eBay, the largest of the online auction houses, members police themselves about both sellers and buyers. Members use a bulletin board to rate how the person they dealt with behaved. If there is enough negative feedback, eBay will cancel the account, company officials said. Each month, between 20 to 50 accounts are canceled.

Despite the safeguards and warnings, online auctions still top the list of consumer complaints.

The National Consumers League (NCL) said that of the top 10 Internet fraud complaints, online auctions are leading the list for the first six months of this year, after holding first place in 1998.

"The most common problems reported were products or services being misrepresented, products were never received, a charge that was never authorized or that was more than the agreed price," said Tara Finck, a spokeswoman for the NCL.

Beanie Baby bilking probed

The National Association of Consumer Agency Administrators and the Consumer Federation of America, in a recent consumer protection survey, cited some examples of online auction fraud.

In one case involving Beanie Babies, the San Francisco district attorney's consumer protection unit is investigating a company that allegedly defrauded 60 people around the country out of roughly $30,000 by not supplying the items that were bid upon.

And the Ventura County, Calif., District Attorney's Office brought a case against two companies that conduct sales and auctions for computer equipment and other merchandise over the Internet and operate as an Internet Service Provider.

Alto Corporation and Auction Sales Inc. allegedly failed to ship merchandise ordered over the Internet within 30 days as required by law, failed to provide refunds for defective merchandise and failed to file an auctioneer's bond with the secretary of state. And when the agreed-upon term for Internet service expired, the defendants also allegedly renewed customers' contracts by billing their credit cards without consent.

The case was settled with penalties and injunctive relief.

Consumer protection tips

While there are enough examples to go around dealing with online auction fraud and rip-offs, what do cybershoppers need to know in case they want to bid on a collectible baseball card or Pokemon item?

The Federal Trade Commission has the following safety tips for cyberbidders.

•Try to pay by credit card. If you don't get the merchandise, you can challenge the charges with your credit card issuer.

•Ask about using an escrow agent, or paying by c.o.d. Be aware that most escrow services charge a fee.

•Verify the seller's identity. If you can't, consider this a red flag and avoid doing business with the seller. Some sellers may use a forged e-mail header, making it impossible to contact them if you need to.

•Ask how you'll get follow-up service, if you need it. Many sellers don't have the expertise or facilities to provide service for the goods they sell. Is this important to you?

•Avoid impulse bids and purchases. Online auctions may be enticing, but are you really getting the best price?

•Ask about return policies. Returning merchandise to an online seller may be difficult. 8 eBay Sellers Admit to Phony Bids Sun Nov 7, 5:43 PM ET Business - AP By MICHAEL GORMLEY, Associated Press Writer ALBANY, N.Y. - Eight eBay sellers were ordered to pay nearly $90,000 in restitution and fines after admitting they bid up products online to inflate the prices. Related Quotes DJIA NASDAQ S&P 500 10391.31 2039.25 1164.89 +3.77 +0.31 -1.28 delayed 20 mins - disclaimer Quote Data provided by Reuters New York Attorney General Eliot Spitzer said more than 120 people will receive restitution in the settlement of the three cases, which wrapped up last week in state courts. Spokesman Darren Dopp said the cases stemmed from specific complaints, but the office has not conducted a broad investigation of the online auction industry and doesn't know how widespread the practice of phony bidding is. One buyer, Brad Clarke, 48, of Peachtree City, Ga., already has received a check for $3,089 after overpaying for a 1999 Jeep Cherokee sport utility vehicle he bought on eBay from a New York seller in 2002. "I'd always been suspicious because it seems like an easy thing to do, to just keep bidding up," Clarke said. "But I was still just completely shocked and very surprised." Three sellers were accused of making 610 bids on 106 of their car auctions under the user name "Mother's Custom Automotive NY Dealer." They are paying more than $28,000 in penalties and restitution, Spitzer said. Their lawyers declined to comment. In another case, the operator of an art auction house and two former employees were accused of bidding on more than 1,100 of each others' eBay items for more than five years to drive up the prices. Some paintings sold for thousands more than they were worth. Spitzer said one of the sellers pleaded guilty to a felony charge, the other two to misdemeanors. They were ordered to pay more than $50,000 in restitution and fines. The other two defendants were accused of making 170 phony bids on their sports memorabilia items. They agreed to pay $10,000 in penalties and restitution.

13 May 2005 STUDENT'S ADDICTION TO £200K EBAY SCAM Exclusive By Nick Henegan A TEENAGER yesterday told how he became addicted to selling fake goods on eBay, raking in more than &L&200,000. University student Matthew Phillips, 19, blew the lot on two flash BMW cars, foreign holidays and a luxury rented apartment before being caught by police after a tip-off. He said: "It was addictive. At one point I was getting &L&2,000 worth of cheques in the post every day. "I regret what's happened but I can't deny that it was fun at the time." Over three years, Phillips made copies of &L&600 Microsoft Office Pro and Windows XP computer software in his Cardiff bedroom at a cost of only &L&2 and sold them for &L&200. He even copied artwork to make his counterfeit discs look like the real thing. Yesterday he admitted obtaining money by deception and copyright infringement at Cardiff crown court. Karl Williams, defending, said: "This young man was hard up and struggling financially with university. The money was intended to pay his tuition fees." Phillips added: "I got greedy." Sentencing was adjourned.