We at MAW were interested to receive an email from one of our faithful followers regarding Madbid (www.madbid.com) the UK based penny auction house.

It appears that a few people had written some negative comments on the Madbid forum http://madbidforums.com/index.php?/topic/95-strange-winners-report/ regarding a few suspicious user names including some comments from a “AuctionWatch” which I will point out right now is not MAW.  Madbid went on to say that their data is monitored and they are compliant with Information Commisioners Office (ICO) (which I will assume is a UK regulatory office).

Our follower took it upon himself to write to the ICO and this was their response:

Sent: Mon, 19 July, 2010 9:33:22
Subject: Enquiry reponse from the Information Commissioner’s Office

19 July 2010
Case Reference Number ENQ0319992

Dear Mr Collier
Thank you for your email dated 26 June 2010, attached.
Your enquiry

I understand from your email that you have been informed that the Information Commissioner’s Office keeps a record of all bidders or indeed can monitor any bids on any auctions run by a particular website.  This is not the case.

We do not routinely hold information on behalf or public authorities or private companies.  Indeed we are unaware of any company called Madbid. I have set out below what this office does.

About the Information Commissioner’s Office

The Information Commissioner is a UK independent supervisory authority reporting directly to the UK Parliament. The Commissioner enforces and oversees the Data Protection Act 1998 and the Privacy and Electronic Communications Regulations 2003 within the UK and the Environmental Information Regulations and Freedom of Information Act 2000 within England , Wales and Northern Ireland .

You can find out about your rights as an individual under the legislation we oversee by visiting the section for individuals on our website at http://www.ico.gov.uk/for_the_public.aspx.

Reporting possible scams

If you are concerned that a UK organisation is operating an online scam, you may want to contact the Office of Fair Trading to report the scam and seek advice on your rights as a consumer.

The Office of Fair Trading can be contacted via their website www.oft.gov.uk.  There is a list of known scams on their website at http://www.oft.gov.uk/Consumer/Scams/default.htm.

Consumer Direct is a telephone and online consumer advice service, supported by the Office of Fair Trading -

Website: www.consumerdirect.gov.uk

Telephone: 08454 04 05 06.

I hope that this information is helpful.  If you have further questions on this issue, please either respond to this email (leaving the subject line unchanged) or contact our helpline on 0303 123 1113.

Yours sincerely

Case Officer

Information Commissioner’s Office

Hmmm. Do you smell the same rat as me here?  Its well and good quoting facts but when these quoted facts aren’t entirely truthful why quote them in the first place?  I must admit we are becoming more and more sceptical of one or two penny auction websites including Madbid.  We did read an article recently where Madbid claimed they had over 70,000 winners and that they have over 100 auctions per day.  Well what a pack of lies that it is.  The FACT is:  MadBid may now have 100 auctions per day (lets all monitor this claim from Madbid) now but certainly from their inception in 2008 this was not the case.  In fact during their first 12 months of operation they averaged 43 auctions per day FACT.  So lets assume that their second year they had 100 auctions per day (and I would stake my life savings on the fact that this is not the case and that they have now conveniently made a few cosmetic changes to their website to say they have over 100 auctions per day because quite a few people had questioned their claims on the number of winners they have advertised against the actual number of auctions) it still does not add up.  Take a look for yourself at their claim http://uk.madbid.com/about/
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Online buyers: Never pay with Western Union or Money Gram – That’s right — never! These methods have proven to be unsafe when paying someone you don’t know. ■ Never click on links sent in unsolicited emails; instead, type in a web address you know. Use firewalls,anti-spyware, and anti-virus software to protect your home computer; keep them up-to-date. Visit OnGuardOnline.gov for more information. 1. Spoof eBay Email Encounter 2. Unsafe Safety Board 3. Hijacked Account 4. Fake Escrow Account 5. Indonesian Credit Card Scam 6. The Western Union Wiggle 7. Win A Car Contest 8. UPS Exchange Collect Confusion 9. Counterfeit “Second Chance” Offer 10. Company Check Crumbles 11. Deceptive Double Whammy 12. ICQ, I Scam U 13. Buy-It-Now, But Off eBay 14. Spoofed eBay Pages 15. Drippy Drop Shipper 16. Dangerous Questions 17. Phony escrow.com 18. African Adventure 19. Weird Wedding 20. Uninsured “Insured Payments” 21. Reverse Western Union Wiggle 22. Fake Money Orders 23. Compromised Credit Card 24. FedEx® Follies

You can find just about anything on eBay these day’s a random browse brings CDs, clothing, cars, and skin to your computer screen. That’s right, I said skin. One man recently auctioned patches of his body to advertising companies, who tattooed their logos on to him. EBay isn’t the only site for surfers bit by the auction bug. There are literally hundreds of sites on the web where you can sell your useless crap and use the money to buy someone else’s useless crap. It’s a flea market if I ever saw one-just online. And hey, it’s not all junk. You can find some great deals on auctions sites.

One problem: People are getting scammed, which turns them off to these types of sites altogether. Of course, security is bound to be an issue whenever the Internet and money are involved, but with online auctions, individuals are in control, not corporations who are more trustworthy with business transactions. 99 times out of 100, the relationship between auctioneer and buyer will go smoothly, but just in case, here’s the top five ways users will scam you. Don’t become that minority who walks away from a deal having lost both money and item.

1. Phony Users. I don’t know what the reason is behind it, but some users will bid on items when they never have any intention of purchasing it. Your auction will be over, and the user will cancel his auction membership and disappear-and there’s not much you can do to stop him. Most auction sites charge a fee to sell items, so not only do you still have the unwanted item on your hands, but you also have lost money trying to sell it.

One way to prevent this from happening is to closely keep track of you auction. When the auction closes, take note of the second and third runners up. That way, if the winner bails on you, you can contact the others to see if they are still interested in purchasing the item from you. At some sites, you also have the option of only accepting bids from confirmed users-these are bidders who have either won and paid for items in the past or who have their own auctioneer’s account set up with the site. Check the guidelines, because every site is a little different on their definition of “confirmed buyer.”

2. Stolen Credit Cards. If you own a business and choose to accept credit cards, be careful about how you do this online. When a user pays with a stolen credit card, it may take a few days for the rightful owner to realize it’s one. Guess what? You won’t get the money for your item, which is already in the mail-as good as gone.

Credit card payments are tricky, and I don’t recommend using them unless you own a business with an online website that has credit card payments available. If not, call the credit card company. The name and address that the user provided for shipping should be the same name and address on the card. Companies are glad to check their records for you-it saves them time and money when their cards are stolen. If it doesn’t match up, decline the card and ask for payment in another way.

3. Shipping and Receiving Scoundrels. Whether you’re the buyer or seller, you should be cautious about the exchange of money and goods. Users can easily take your money or item and disappear without sending you what you’re due.

In most conditions, it is the buyer’s responsibility to send payment first. If you’re using a personal check to pay for an item, date the check two weeks from the day you send it. That way, if the seller never sends the item, you can cancel your check before its cashed. The best choice, especially for larger items, is to use an escrow service. These companies act as a go-between for buyers and sellers.

Check with the Better Business Bureau or Consumer Reports before selecting a service to make sure they aren’t scamming both buyer and seller by disappearing with the item and the money, both at once.

4. Check Bouncers. As with stolen credit cards, buyers can easily scam sellers by sending them checks that are no good. You receive the payment and mail the item, but when you go to cash the check, you find out that it is worthless. Don’t shoot yourself in the foot-use a third party service instead.

Third party payment services, the most popular of which is paypal, allow people to create free online accounts to transfer money. Using a bank account or credit card, you can send and receive money almost instantly, which prevents users from stealing your stuff. This is the best option for payment after an online auction.

5. Identity Thieves. As with any online service, you need to be very careful with your personal information to prevent identity theft. These crooks are getting very sneaky, often the e-mails or messages you receive from them look and sound very official. As people are getting more web-savvy, so are cyber criminals.

Use a well-known auction site that you trust. These sites should never ask for information like your social security number. Most of the time they won’t be the ones trying to scam you. Other users will use their company name to send e-mails demanding such information. If you get something in your inbox that looks fishy, forward it to the company or give them a call, and professionals there can tell you if it’s legit. These sites will also never ask for your user name and password in an e-mail, so beware of claims that this information is needed.

Use common sense. The information you share online should be limited and you should always take preventative measures to protect yourself. Sites are only as secure as their users, so if you get scammed, most times you only have yourself to blame. Before signing up with any auction site, check their policies. Knowledge is the key to keeping your online transactions protected so that you can buy and sell all the personal property, goods and services you want. Before long, that green and orange polka-dotted couch will be yours.

Penny auctions work as a traditional auction. The only difference is that you can only raise 1 penny at a time. Every auction has a countdown timer. When the bid is raised the timer is reset to a predetermined bid time. If no one raises the bid before the time is out the auction closes and the last bidder wins.

The Real Deal: Online Auction Scam

I had to opportunity to check out the REDC auction today with one of my clients. I have been curious about these auctions for quite a while, but honestly had a skeptical attitude after ready so many bad reviews. So what did I find out at the auction? Did my client win the bid? Check out the video to find out… Distributed by Tubemogul.

Here is a checklist that can save you a great deal of time and irritation. Following these few suggestion can help you avoid scams on eBay. First rule when purchasing anything on eBay is to only buy items that have a photo of the product displayed. This way you can be confident that the seller has the product, if there is no photo it is a sign that the sale is a fraud. You should also verify the photo with photos in a catalog since most scammers use imaged from other auction sites and catalogs available online. Photos that are taken professionally are clearer and have better lightning. The users selling history should be validated by you, generally on the feedback page, and is detailed in the following manner. Member since: Thursday, Jun 23, 2002 Location: United States.

Sellers who have been members for a long duration or new sellers but not active ones commit the most auction scams. If the merchant has only some feedbacks or latest feedback as a buyer and not as a seller this may perhaps be a hint of a scammer. It is not difficult to get feedback for buying items that are not expensive. Have a look at what the seller has been selling and buying on eBay.

The auction and feedback page are interlinked and can be seen at the right side of the page. Perform a search for the seller’s auctions and include the auctions that have been completed. If you wish to purchase a similar item that had been auctioned you can ask the previous buyer if he received the goods. The next step you must ensure is that the payment address and seller’s listed eBay address are similar. If not, it is strong sign that the seller is a scammer. If you wish to buy an expensive item from the seller you can call him, placing a bid on the item will reveal the seller’s contact details. If you are uncomfortable about buying an item from the seller you can contact the seller. This is an excellent way of avoiding scams on eBay.

You can always get advice regarding eBay buying and selling from well-informed sources. You should also get an outline of the worth of collectibles or antiques when buying it from eBay. This is because the collectibles are mass-produced and gives you the option of purchasing it from other reliable sellers. You must inform yourself of the items you wish to purchase on eBay by visiting antique displays and stores. This is because when you consider factors like costs of shipping, insecurity of the items condition then buying them locally falls cheaper than on eBay. This way you will not become a victim of eBay scams and make friends with people you share similar interests with.

You can also use popular search engines to get more information on the items you are interested in. At times you might stumble on the same item on an online store other than eBay at a cheaper price. Or it another possibility that may arise is that the item is common and you can purchase it a lesser risk from the online store. As a buyer you have the right to ask the seller questions of the item that you have bid for and even for more photos of the item so that you can be more certain of the transactions. This is another way of avoiding being scammed on the Internet. The way the seller takes payments can say a whole lot about him, if the preferred payment method is a wire transfer, or money order, Buyer Beware!

Another thing you can do is to check the different methods of payments accepted. It may be an eBay scam if the person selling you the goods takes payment only via wire transfers and money orders. Paying for the products using your credit card will provide you with extra protection. This is because a credit card transaction can be reversed if you contact the issuing bank. As there are exceptions to every rule there is also to the scam involved in wire transfers. Many ask for transfers to avoid the hassle of bounced checks, but if the seller insists on only a wire transfer and nothing else then you can be sure it is a scam.

You must also check the manner in which the ad is placed. This means reading into the ad to see if the seller seems keen to sell or also to understand how much he/she knows about the product they are selling. There are different aspects of the item that makes it valuable. If the color increases its value then always ask for a picture of the item and use a common household item that will provide you the contrast.

Find out about the sellers return policy. Most sellers sell with a no return policy, but some allow for returns provided the item was not described properly. A no return policy on an item does not mean that the product cannot be returned if it is misrepresented only that it becomes harder for you to make a claim with eBay.

Be Sure to Only bid on eBay items that you actually need. People have a tendency to bid for unnecessary items on eBay. People do this with the motive to resell at a higher price. You also tend to buy items out of ignorance, as you do not know enough about it before purchasing.

You must be aware of the sellers as his goal is to sell he will make use of colorful words to tempt the buyers. There are a few items that are rare to come by, but this forms a very small share and so you must be careful not to fall into the scarcity complex. Many time the item that you do not think exists anywhere else may be available at another store, or website.

As a buyer you must know how much you are willing to loose in an auction. It may be $10 or even $100. However it is up to you to determine this amount. This will depend on your personal attitude and goals and how much you think you can spend with little effect on you. Also know when you have to make a big deal about your losses. If it was a $50 auction you might as well let it go as it takes to much time and effort. What you can do is leave a harmful feedback and also file a complaint with eBay. A word of advice, do not provide the seller with a feedback until you have received your product and also satisfied with it. Not leaving a feedback will help you get a return if the item is different as compared to the description. If you are unsatisfied or the seller is not co-operative to rectify his mistakes always ensure that you leave a negative feedback. This is one of the ways you can warn off other bidders.

Using different eBay accounts to buy and sell will ensure that you do not get any negative feedback from retaliators. They are likely to do so when you leave negative feedback on their accounts. Another tip is to keep getting new accounts. There is no need to build a connection with one and continue with it for a long time. Once you get about 30 or 40 feedbacks start another account. Keep in mind that sellers can also use this tactic. If you are buying items on eBay from a company, be sure to use the scam tools available in the product-sourcing tool available at NAWCA.org. If the company has wronged a seller in the past, and the seller posted information online, their tool will find dirt on them.

When you have been scammed you must not threaten the seller. eBay has a policy against this and will suspend you with effect immediately. Many scammers make use of this policy to their benefit by provoking you to threaten. The minute you do they will send this mail to eBay upon which your membership will be cancelled. In this way even if you send a complaint it will not be accessed by eBay as they cannot view complaints of non-members.

One way of making sure that your mails are not threatening is to seek the help of a friend. This way you will know that your letter is polite and within the requirements of eBay. It could be that the seller has made a genuine mistake and not intentionally. This is why your first mail should always be polite.

When you are unhappy with your purchase there is no need to demand a lower price once you have the item. Always start by telling the seller that you would like to return the item. Asking for a lower price once the item is with you puts you in bad light trying to drive a hard deal and looking like the scammer instead.

Most of these issues are common on eBay. These are items that you will come across over and over again. So there is no need for you to rush to make a purchase instead you can take your time and wait for the right item and seller with the right price.

This is a great place from where you can get your hands on very interesting collectibles and at low rates. There are chances you get scammed but this will be out of your own greed and impatience. Always find out more about the item and ask questions before placing your bid. This way you can save yourself from a lot of grief from when you loose your money.

The Internet has provided the public with a useful and convenient tool that makes it easier to do all manner of things than it used to be. One of these things, oddly enough, is the sale of motor vehicles. It seems strange that cars would sell well on the Web, as one would think that buyers would want to “kick the tires” before making a purchase. The success of eBay Motors, AutoTrader and other online sites devoted to the sale of motor vehicles would suggest otherwise, as business at those sites is thriving.

Consumers who wish to purchase a vehicle online should be aware of a popular scam perpetrated by crooks who wish to steal your money – the wire transfer scam. The seller offers a vehicle for sale that he or she doesn’t really have; they often just post a stock photo or one they found somewhere. The sellers often indicate that they are located in Europe, and they insist on a wire transfer, such as Western Union, for payment. Once the buyer sends the money, the seller vanishes, never to be heard from again.

This scam has been going on for some time, and most of the online auto auction sites encourage their customers never to pay for a vehicle using a wire transfer, even if the seller promises to use escrow to ensure the safety of the transaction.

Here are a few tips for those people who are shopping for a vehicle online:

# Ask the seller if you can stop by and see the vehicle in person. Someone who doesn’t actually have the vehicle in his or her possession will almost certainly refuse. Even if you have no intention of paying a visit, just asking to see it could be useful.

# Watch out for auctions that feature stock photos or photos from brochures. Anyone with a real car to sell should be able to take a picture of it.

# Beware of any seller who will only accept a wire transfer for payment.

# Beware of a seller who says the vehicle is in another country but offers to pay the shipping to the United States. This is a common ruse used by scammers in other countries.

# Watch out for a vehicle that is offered for sale at a price that seems too inexpensive for the model. A $25,000 car offered for $10,000 should set off bells in your head.

# If on eBay, check the seller’s transaction history to see if they have a record of actually selling vehicles. Scammers sometimes hack into eBay user accounts and sell using the name of another, established user. If the seller is selling a Harley but has a history of only buying compact discs, watch out.

While buying a vehicle through online auction sites is a good way to purchase one, buyers should exercise the same cautions as when they buy anything else on the Internet. If you are buying an expensive item and you are not familiar with the seller, be careful.

Country manager of www.Swoopo.co.uk, Nigel Whiteoak on BBC Breakfast, Saturday 20th December 2008 Great interview, explaining that the skill involved in playing Swoopo defines the site as entertainment shopping.

This is a quick overview of how our auctions work at Swoopo. We show you how to purchase Bids, and then how to place a bid and what happens when you do. We also explain how you win.