Scammers have been at it on Ebay for years to try and dupe sellers into shipping out merchandise that was purchased using a hacked account. This is a huge issue for both buyers and sellers on Ebay, and the issue isn’t going away. One of the most recent cases was by these fraudsters who tried to dupe a security expert on Ebay. In the auction, the buyer hacked into someone’s PayPal account to purchase the item, then cancelling the payment in hopes the seller would not receive the email before the seller found out. The buyer keeps their money, and gets the laptop. Luckily, PayPal responded fast and sent the email quickly to the seller.
This is an all too familiar incident for sellers. How many times have you had an item yanked down because of fraudulent bidding? It’s just plain annoying. So how can you reduce the number of items that are removed by Ebay for fraudulent bidding? Don’t make your listings attractive to these types of people. Not always, but a good majority of these buyers are located internationally. Set your payment settings to require a feedback above “0,” and don’t sell to countries that are constantly trying to scam you. Check out this forum thread on the Ebay Discussion board that lists some of the riskiest countries to ship to on Ebay, along with some dialogue from experienced international shippers.
It almost seems like it comes with the territory if you sell on Ebay to expect a certain number of bids and sales to be fraud, especially if you are selling in certain categories. Electronics and expensive clothing/accessories are highly susceptible to hackers. Apparently they have a thing for handbags and laptops.
Here are some related resources you may want to give a read through:
Photo by lovelypetal on flickr, licensed under Creative Commons 2.0