So, the things that consumer take note to prevent e-auction fraud would be as follow:

• User identity verification. A voluntary program, encourages users to supply auction's compamy with information for online verification. By offering their Social Security number, driver’s license number, and date of birth, users canqualify for the highest level of verification.


• Authentication service. Product authentication is a way of determining whether an item is genuine and described appropriately.Authentication is verydifficult to perform because it relies on the expertise of the authenticators.Because of their training and experience, experts can (for a fee) often detect counterfeits based on subtle details. However, two expert authenticators may have different opinions about the authenticity of the same item.


• Grading services. Grading is a way of determining the physical condition ofan item, such as “poor quality” or “mint condition.” The actual grading system depends on the type of item being graded. Different items have different gradingsystems—for example, trading cards are graded from A1 to F1, whereas coins are graded from poor to perfect uncirculated.


• Feedback Forum. The auction's company Feedback Forum allows registered buyers and sellers to build up their online trading reputations. It provides users with the ability to comment on their experiences with other individuals.


• Insurance policy. Auction's compamy offers insurance underwritten by Lloyd’s of London.Users are covered up to $200, with a $25 deductible. The program is provided at no cost to users.


• Escrow services. For items valued at more than $200 or when either a buyer or seller feels the need for additional security, auction's company recommends escrow services(for a fee). With an easy-to-access link to a third-party escrow service, bothpartners in a deal are protected. The buyer mails the payment to the escrow service,which verifies the payment and alerts the seller when everything checksout. At that point, the seller ships the goods to the buyer. After an agreed-uponinspection period, the buyer notifies the service, which then sends a check to theseller. (An example of a provider of online escrow services is tradenable.com.)


• Nonpayment punishment. Auction's company implemented a policy against those who do not honor their winning bids.To help protect sellers, a first-time nonpayment results in a friendly warning.A sterner warning is issued for a second-time offense, a 30-day suspension for a third offense, and indefinite suspension for a fourth offense.


• Appraisal services. Appraisers use a variety of methods to appraise items,including expert assessment of authenticity and condition and reviewing what comparable items have sold for in the marketplace in recent months. Anappraised value is usually accurate at the time of appraisal but may change overtime as an item becomes more or less popular in the marketplace.


• Verification. One way of confirming the identity and evaluating the conditionof an item is through verification.With verification, neutral third parties will evaluate and identify an item through a variety of means. For example, some collectors have their item “DNA tagged” for identification purposes. This provides a way of tracking an item if it changes ownership in the future.