Auction Fraud Investigations

Auction Fraud: Defining the Problem

Online auctions have grown into a very lucrative business. Internet auction fraud is currently the number one fraud committed over the Internet.

Auction Fraud Involves:

• non-delivery;
• stolen goods;
• counterfeit merchandise;
• triangulation;
• black- grey market goods;
• multiple bidding;
• multiple accounts;
• identity theft;
• multiple locations; an
• multiple platforms
  

Platforms:

• eBay
• Facebook Market
• classifiedads.com
• Overstock.com
• Kijiji
• olx.com
• Ubid
• eBay Market Place
• yakaz.com
• Craigslist
• webstore.com
• sell.com
• Ibid
• eBid.com
• Oddle.com
  

Product Theft Cycle

Product of Interest

Investigations of organized retail crime rings and auction fraud have uncovered a wide variety of goods targeted to be stolen and resold on the black market. One researcher has noted that CRAVED items (Concealable, Removable, Available, Valuable, Enjoyable, and Disposable) are more often targeted because of the ease with which criminals can remove these items from stores and convert them into cash or other valuables.

Desirable Products

• Razor Blades
• Baby Formula
• Apple Products
• Face Creams
• Smoking Products
• Designer, Logo, and Leather Apparel and Shoes
• Vacum Cleaners
• Name Brand Power Tools
• Coffee
• Consumer Electronics
• Fragrances
• Batteries
• Music and Games
• Over the Counter Medications
• Printer Ink