E-Auction

E-auctions are auctions conducted online.

An example of e-auction in Malaysia is http://www.lelong.com/.

Prevention

*User identity verification. eBay uses the services of Equifax to verify user identities for a $5 fee.

*Authentication service is a way of determining whether an item is genuine and described appropriately.

*Grading services is way of determining the physical condition of an item.

*Feedback forum provides users with the ability to comment on their experiences with other individuals

*Insurance policy uses are covered up to $ 200, with a $ 25 deductible.

*Nonpayment punishment eBay implemented a policy against those who do not honor their winning bids.

*Appraisal services use a variety of methods to appraise items.

*Physical inspection when the seller and buyer are in the same location, it is easy to arrange for such inspections.

*Verification One way of confirming the identity and evaluating the condition of an item is through verification.