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Wallingford, CT – November 24, 2009 – Connecticut Better Business Bureau is warning consumers not to let down their guard during the holiday shopping period, especially when bidding at online auction sites.

Some consumers turn to online auctions for a gift that is difficult to find at retail outlets or for a good price on a ‘must have’ gift.

According to Jupiter research, consumers will spend a stunning $38 billion in 2009 on items auctioned through eBay alone, the most popular auction site on the Internet.

In most cases, online auctions are trouble-free; however, as the popularity of online transactions grows, so do attempts to defraud consumers. In 2008, half of all online fraud complaints to the FBI involved auction fraud and non-delivery of goods.

Connecticut Better Business Bureau President, Paulette Scarpetti, says eagerness to buy should not blind buyers to the risks of online auction fraud.

“Con artists are well aware if an item is in hot demand, such as game consoles, toys, electronics and hard to find items. Consumers should not throw caution to the wind because of a sense of urgency to get a ‘good deal’ online.”

Connecticut Better Business Bureau offers the following advice to consumers who use online auction sites for holiday gift buying:

Research how the auction site protects bidders.

A responsible auction site will take steps to protect both buyers and sellers.

Find out what actions the auction site will take in your defense if you become a victim of an unscrupulous seller.

Compare the cost of the item elsewhere. Scammers will often price their items lower than the competition in order to lure in buyers. A lowball minimum bid for an item should be considered a red flag.

Research the seller. Online auction sites often provide the opportunity for buyers to rate sellers and provide feedback on their transaction. These reviews help determine the seller’s track record, but keep in mind that reviews are typically not authenticated and some sellers will pay for flattering reviews in order to mislead buyers.

Ask plenty of questions. When in doubt, don’t be afraid to ask the seller questions about the item, including how they came to own it, its condition and if you can return it if you’re not satisfied.

With shipping costs, is it still a good bargain?

Low prices on some items may be offset by high shipping and handling costs. Take this into account when comparing sellers’ prices.

Don’t be lured away from the auction site. In some cases, scammers will try to convince bidders to complete a transaction outside of the auction site, perhaps by telling losing bidders that the seller actually has more of the same item available. Leaving the Web site means you are no longer covered by the protections and guarantees provided by the auction business.

Use a secure form of payment. Use a credit card or secure payment service such as PayPal when purchasing items in an online auction. If the seller insists on using an escrow service, always research that business fully with BBB. Never wire cash payments — such as through MoneyGram or Western Union —to someone you don’t know.

For more guidance you can trust on shopping safely online, visit www.bbb.org