Very often we users on this site are familiarized with buyer abuse and fraud, but there is an ever growing threat from seller fraud particularly on high priced items. eBay and PayPal often do well with siding for buyers, as we all know, but there is a new threat that neither are prepared for.
Our company is a bulk purchaser on eBay of used consumer electronics so we have experienced just about every type of seller fraud there is, and the latest is very difficult to overcome unless you are aware of the tools:
As most of us know, if a seller sends a purchased package with USPS tracking less than $750.00 and tracking shows a delivery in the buyer's zip code, eBay and PayPal both consider that a delivered package even if the buyer claims it was not received.
However, what if a fraudulent seller who is savvy to the rules, locates a random address in the buyer's registered address zip code, ie: a library, a hotel, a fire dept or any number of easily obtained addresses; then ships an empty package with tracking there.
Well I will tell you what happens, the buyer does not receive it, tries to open an eBay Item Not Received Case or PayPal Resolution's Case, and both of which will be found in the seller's favor and the buyer WILL LOSE THEIR MONEY. What's worse is a Credit Card Company will also likely deny the claim
The only way to combat this is difficult for a buyer. If you believe you are victim of this scam, visit your local PO through which the item passed, bring your tracking number, and ask for an actual scanned image of the parcel and shipping label. They will be able to provide it and it could show a different address than yours with the uploaded tracking number.
It is best if possible to have USPS email it to you so the email shows a USPS email address. You can then provide this information to PayPal or eBay, and the case or appeal will be granted to the buyer.
So what is PayPal and eBay doing about this? Not much yet, but the technology is there now from USPS and hopefully they will cooperate together to make this information more easily obtainable to combat seller fraud.