Smart SpendingSmart Spending

Scam targets eBay auction losers

A scam that aims at eBay users who have lost out on auction items has raised alarm.

By Mitch Lipka May 7, 2013 1:28PM

Image: Woman with computer © Don Mason/Blend Images/CorbisA new scam targeting eBay users who were losing bidders has victims and intended victims abuzz about whether the online auction giant has been hacked.


Suspicions have been fueled by the amount of information the scammer -- or scammers -- has about the failed bidders. eBay would not directly address the question of hacking, but the company acknowledged it is looking into reports of the latest version of what is known as a "Second Chance" scam.


"eBay is investigating this matter, working directly with users who have reported fraudulent second chance offers to us," the company said in a statement.


The scammer emails the losing bidder with a note like this:


"The seller (Username) is making this Second Chance Offer because the high bidder was either unable to complete the transaction or the seller has a duplicate item for sale. The selling of this item through Second Chance Offer is in compliance with eBay policy; you will be able to exchange Feedback with the seller and will be eligible for all eBay services associated with a transaction, such as fraud protection."


Targets appear to be those who have gone after relatively costly auction items, from collectibles to cars to artwork to jewelry. Some who have fallen prey report losing thousands of dollars. The email address jrengineer@gmail.com has been associated with numerous complaints. An email to that address asking for a comment was not returned.


The scam emails appear to be from eBay and seems to be from a legitimate seller. However, rather than providing for the normal payment methods -- namely PayPal -- the targets are asked to send their money directly to an overseas bank account.


"These scams occur through personal email, off the eBay site. Always start and end your transaction on eBay," eBay said in its statement, noting that a Second Chance offer can be legitimate. "Consumers should keep in mind that legitimate Second Chance Offers are facilitated through eBay and will appear in the 'Messages' section of 'My eBay.'


"If you're suspicious about an email that claims to be from eBay, sign in to 'My eBay' and click the 'Messages' tab. If you don't see the same message there, the email is fake."


An internet security expert said he doubts this round of scams is the result of eBay being hacked. The most likely scenario, according to McAfee Online Security Expert Robert Siciliano is that the scammer is also a seller and, therefore, can see bidders IDs and has matched those IDs to email addresses.


The key to avoiding the scam, which is a form of phishing, is to recognize it, he said. "It works so well because unless you really know what to look for in the code of an email, you aren't going to recognize a phish. The only way to thwart a scammy eBay phish is to discipline yourself to only correspond with eBayers via your eBay inbox."


It isn't often that those running these scams are caught, Siciliano said, and money that's lost usually can't be returned. "Catching the bad guys generally isn't cost effective for eBay or for law enforcement," he said.

 

"There's potentially thousands of scammers out there and unless it is determined that a significant amount of them are organized and working together then law enforcement won't chase them. Plus, how are the feds going to arrest a guy in a hut in Ghana? Its only when the law stumbles upon and existing ring and determines that eBay is part of their operation will they dig deeper."

eBay recommends users "forward suspicious emails to spoof@ebay.com." They also urged that "Consumers should never pay for purchases with instant cash transfer services. These payment methods are unsafe when paying someone you do not know."


Here is additional information about avoiding scams on eBay and a guide for how to know you're dealing with a legitimate second-chance offer.


More from MSN Money:

6Comments
May 7, 2013 8:08PM
avatar
Wow...most people who fall for this deserve to be scammed. Everyone who uses ebay know the main reason PayPal exists is because of ebay. In the "real" ad it shows what payments are accepted. If your "second chance offer" comes and they won't accept PayPal, only cash, there's probably something wrong.
Jun 18, 2013 4:29PM
avatar
This security expert is really stupid. Thinking that its the original seller that is scamming users, what total rubbish. A number of our sellers contacted us asking if we had sent out a second chance offer, one even paying, I helped him get the money back as he had paid into an Elance account. I think Ebay was hacked, or a member of staff in one of their outsource/overseas centres gave a scammer back end access or user details.
May 9, 2013 2:08AM
avatar
i buy items from ebay,mainly gold and silver coins.recently i was outbid on a 1906 1oz.gold coin.my bid of $1400.lost out.several days later,i got an official looking email from ebay stating the winning bidder had backed out.i was next highest bidder,so i could have the coin at my bid.that was the first red flag.too good of a deal.then seller was located in london so i needed to send money via western union.couldnt accept paypal.even gave a mans name and address to send money to.i had 2 days to comply.needless to say i didnt respond,not heard from "seller"or ebay since.so use common sense and dont count on ebay getting involved.they want buyer and seller to work out the details.checking back in files it was that enviormental name same as someone above mentioned.i reported it to ebay.hope they catch these thieves.
May 8, 2013 9:56AM
avatar
Anyone who shops online via EBay, Craigslist or specialty sites should be savvy enough to recognize that wire payment especially Western Union or MoneyGram equals scam, period. Recently Craigslist scammers have enlisted PayPal payment into their tool of tricks - they will often text via Pinger or some other service but are "unable" to meet in person for some cockamamie reason - poor English gives it away. EBay's fee structure is like an octopus reaching into every pocket you have, so there is no excuse for less than state of the art security. 
May 8, 2013 10:18AM
avatar
Sure, it would be great if everybody on eBay were savvy enough to figure out these scams.  Unfortunately, that's not the case.  The fact is that nobody deserves to be scammed.... well, except perhaps the scammers themselves. 

eBay's genuine second chance emails contain the line," Your registered name is included to show this message originated from eBay."  That line, intended to enhance security, seems to have helped lend legitimacy to these new scam emails that contain users' real names.


Report
Please help us to maintain a healthy and vibrant community by reporting any illegal or inappropriate behavior. If you believe a message violates theCode of Conductplease use this form to notify the moderators. They will investigate your report and take appropriate action. If necessary, they report all illegal activity to the proper authorities.
Categories
100 character limit
Are you sure you want to delete this comment?

DATA PROVIDERS

Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.

ABOUT SMART SPENDING

Smart Spending brings you the best money-saving tips from MSN Money and the rest of the Web. Join the conversation on Facebook and follow us on Twitter.

VIDEO ON MSN MONEY

TOOLS

More