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Tips on How to Avoid Fraud on Collectible
Coins
Many people enjoy shopping online where there
are great buys of coins that can be found. A person may prefer
do his shopping while he is at home because it is convenient and
time-saving instead of going out looking for stores that sell
collectible coins and other souvenirs.
A person can differentiate between a live auction and an
Internet because an online auction can take several days to
complete. They entertain bids for the highest price up until the
time the auction is about to close.. Many people that are
bidding online enjoy the experience and they may be familiar
with the strategies to use to win an online auction.
There are also online sites where a person can buy any item that
may capture his interest. This is where most coin collectors
purchase their desired coins. By searching and finding the item
that they want, they can actually negotiate and make the
payments through the Internet. This can be very risky as you are
dealer/seller that is unknown to the buyer, yet many people are
still making transactions and payments through this kind of
online auction.
Fraud is common even though many Internet sites that do business
online contend that the risk of fraud is not something to worry
about. They contend that only 0.0025 percent of true cases of
fraud occur with online transactions - that means only one out
of 40,000 listed Internet transactions would be fraudulent. On
the other hand, the FBI has their own investigations, which
prove that those figures are not true- they contend that the
risk of fraud is much higher according to their statistics.
A person should believe the FBI for his own protection. Even if
one can say that the majority of online coin selling
transactions are honest and credible, the process used to make
the transaction most probably is questionable and uncertain.
There are business transactions, which are intentionally
committing fraud with their clients and buyers. Aside from
flea-market dealers, mail-order sellers, in-person auctions and
some coin stores, the Internet has introduced the crime of fraud
to many people in the easiest way possible.
One protection that a coin buyer should know is how to get
“feedback”; that way, a person can see the ratings other bidders
give the seller and he may compare his transaction with the
transaction of the others. Since there is a great risk of fraud
where there is negative feedback, the person may withdraw his
participation from the auction if he deems that to be necessary.
A person may also acquire ideas by looking for those members who
have left “positive feedback” and compare it to the reaction of
the sellers. A person can make an assessment of what could be
possible useful information from those reactions. Be careful and
precise about any transaction that is offered by the seller.
There are instances where a person is deceived about the item he
purchased. The photo shown on the Internet displayed the coin
that a person wants to have but they delivered a totally
different item. These cases are fraud. A person must make sure
that the item he saw on the photo is the exact item that will be
delivered to him. Here are some tips that will help a person
prevent fraud during a coin search in the Internet.
1. A person should save the online photo of the coin he wants to
purchase. Many sellers remove the image and the title of the
item once a purchase has been made.
2. A person should get the description and the auction
information. It should either be e-mailed to the buyer or sent
in writing by mail.
3. If there are suspicions regarding an auction, a person should
ask for clarification from to the seller. This will avoid
misunderstandings and confusion on the part of the buyer.
4. A person has the right to refuse any transaction where he
thinks the price given on the coin is too high. One should be
aware of the standard price of the specific coin and compare it
to the price that was given during the online transaction.
5. A person can ensure that there will be no fraud by asking the
seller, before the auction closes, if there is any available
escrow assistance for the bidder.
These are only a few tips that will ensure a person of his
safety when making any transactions online. Fraud can happen to
anyone, especially those who are interested in purchasing
collectible coins online. It is always important to be informed
and knowledgeable about the possibilities of encountering fraud.