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Commentary
THE EBAY SCAMS
As the currency market matures, a lot of collectors are looking for more sources of new material. Other than a dealer’s Internet website, there are auctions, currency shows, and of course there is the online auction houses of eBay, Amazon and Yahoo. Ebay is by far the most popular. There are no guarantees that one venue is better than the other. However at currency shows you can at least see the material and physically talk to a dealer before you make a purchase. On someone’s website you can have some comfort that they went to the expense of at least putting one together. Not a small feat in itself. However on ebay you need to be extra careful. Ebay is viewed by millions of people everyday and unfortunately, it is a breeding ground of a lot of fraud and deceit by professional crooks.
I am going to list a few pointers that you might consider BEFORE you make a purchase on ebay or for that matter anyone’s web site as well. I cannot guarantee that you won't get ripped off, but if you follow these simple rules you will have a better chance of getting a fair deal.
1. Written Return Policy: Never purchase any item that does not have a “Written Return Policy” in the advertisement. A 7-10 day return policy is common. If they do not have one, DO NOT purchase anything from them period. Run away fast. There is a reason they are selling it with no return. Never purchase from anyone who advertised an item “Sold as is where is with no return”. If you do, you may not like the item when you receive it and you are stuck with it forever. Ebay will do nothing for you if the ad says no returns. If they do not advertise a return policy, email them first and get it in writing their return policy. You may need the email if a dispute arises later on. Any reputable reseller should offer an unconditional 7-10 return policy. 2. EBay’s feedback system: Always check the reseller’s feedback. The ebay feedback point system does have its flaws, but it is better than nothing. Look at the item that they are selling. If you are buying a currency note from them and their past feedback shows that they are in the business of selling blue jeans or CD tapes, be wary. That normally throws up a red flag. SCAM # 1: A smart currency scammer will contact an ebay seller who has a large positive feedback number and offer them a deal to sell their notes for them. The scammer is hopping that new buyers will feel comfortable with the new seller because he or she has a good or high feedback score. In essence they are a front for the scammer. That is why you should always check and see if the seller has been in the business of selling currency notes in the past. SCAM # 2: Is for a reseller to go out and purchase 50 or 60 $1 to $3 items to get a big feedback score to use. Then they switch to selling expensive currency notes. PLEASE check all their prior purchases that you can before you invest a lot of money with them. If they haven’t sold anything on ebay in over 6-8 months and now they are selling high-grade rare currency. Be wary. Look at what other people are saying about them. Also if they have a lot of negative feedback, stay away. ONLY PURCHASE EXPENSIVE ITEMS FROM SOMEOME WHO HAS AT LEAST 25 CURRENT POSTIVE FEEDBACKS AND NO NEGATIVES IN THE SAME FIELD OF SALES. 3. Private auctions and feedbacks: I do not like private auctions or private feedback scores at all. They are trying to hide something from you. Never buy from anyone who has a private auction or feedback on ebay. That is a good way to get “shilled”. The seller will use the excuse that they want to protect their bidders identity or they don’t want their bidders getting unsolicited offers from others. Those are both lousy excuses. Ebay doesn’t allow you to solicit to their bidders. Any bidder who wants his ID protected should have someone else bid for him or create a second ID, or simply contact the seller directly. Most sellers who use private auctions do it to hide the ID of their friends or associate scammers, who bid for the item for them and run the price up and make it appear like there is someone who really wants it. Their friends, or associate scammers will generally stop just short of where the seller wants his targeted price to be or just one bid under his “reserve”. The next bidder wins! They are looking for SUCKERS or people new to ebay. Don’t get taken by this scam. There are a lot of them on ebay right now. 4. Second Chance offers: The original intent of second chance offers was actually a good one. However is has turned out to be one of the biggest scams ever on ebay. NEVER ACCEPT A SECOND CHANE OFFER, even if you know the person. Thousands of people have been ripped off and literally robbed of their hard earned cash. Scammers or hackers will go on ebay and pick an item and send it to all of the other under bidders using a replica copy of an ebay page. The offer will say the winning bidder did not want the item and if you want it to click on the link that they provide and you can purchase it, usually at a much lower and attractive price. A typical Second Chance Offer will read as follows:
The link that they provide to you will take you to their phony URL and then they will ask you to send them the money and you get the note. Never fall for this one. Besides, if you really had wanted it bad enough, you would have bid higher. All legit second chance offers will only appear on your actual ebay page, not in your MS outlook. 5. Certified Notes: I highly recommend that if you purchase a currency note on ebay and you are new to the hobby, get a certified note only. Why take a chance when you don't have to. Most reputable resellers would recommend either a PMG (A division of NGC) or a PCGS certified note. If you are new to the currency market or you are coming in from the coin side, you will recognize these two companies. They are the top two respected currency-grading services available. No exceptions on certified notes! Besides, certified notes carry a much higher premium upon resale. If you find a questionable raw note you’re interested in, ask them to get it certified for you. It generally cost around $15 to $30. Offer to pay the fee. If they refuse, walk away. If it is indeed as they advertise, why would they not want to get it certified? There are other currency grading services available. However they are all owned and operated by currency dealers who grade and sell their own notes.. Now how subjective can that be? 6. It’s a Good Deal: If the offer sound too good to be true, it usually is. Be wary and use your good instincts and common sense when purchasing currency notes on ebay. Most of the time a item will be priced way below market value with a “buy it now’ price offered and often will be a 1 day or 3 day auction. These are all red flags. Email the reseller and ask for a phone number to contact him directly. Ask about the item. If it is an expensive item tell them you want to pick it up in person. At that time they will come up with some excuse why you can't. Run away! It’s probably a scam. 7. Paying and Getting Paid: With today’s technology, no paper instrument is safe from counterfeiters. Literally hundreds of people are getting burned everyday by these types of fraudulent instruments. The safest way to assure payment is to hold any paper instrument 7-10 days to clear your bank. It doesn’t matter if it is a cashiers check or US postal money order. On larger orders ask for a wire transfer and wait for it to clear as well. If you’re buying a note use your credit card or payment through paypal. You’ll at least have options if a dispute arises. 8. My personal "Red Flag" do not buy list includes: There are certain ebay sellers I would not buy from: · Anyone who sells under a "private auction" or allows someone with a private feedback to bid on their items, · Anybody who sell less than a 5-day auction. · Anybody who, all of a sudden starts selling currency, when they once sold blue jeans or CD tapes, etc. · Anybody who has less than perfect ebay score with a lot of negatives or too many neutrals. Ebay is a very good venue to find product and has a very large audience. However there are a lot of scammers and rip-off artist lurking in the shadows waiting for their time to shine. If you plan on buying currency on ebay be warned that a good portion of the notes have been doctored one way or another. Ebay has changed dramatically over the last couple of years. Because of the rapidly rising prices of the currency market, a new generation "rip-off" resellers are out to make a quick buck. Don't be their next victim! Caveat Emptor! For more information you can contact Jhon E Cash at his website at jhonecash.com or call 214-769-9936.
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