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Thu Jan 5 2017 17:41:21

eBay Fails to Detect Repeat Scams but Promises to Protect Seller

By: Reader

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Dear Ina,
I own a medium-sized eBay store. In the last 24 hours we've had 3 orders placed for high-valued iPhone 7 and Macbooks where the eBay account was hacked into.

The scary part for me is that this has happened to our eBay store over 10 times in the last 2 weeks and I've caught it each time (eBay hasn't caught a single one!). 

This is how the scam works...someone has their eBay account hacked into and the item is purchased with the regular user's state and zip code. After the user places an order they will send a message saying that they got the zip code and state wrong, and that it should be Newport, Delaware. 

As you may know, Newport is home to many freight forwarders. So what the buyers are trying to do is get the items shipped to their Newport freight forwarder who then ships it out to whatever country they are in. 

The way I have found out the orders were fraud is by calling the phone number registered to the account. I've even tried calling eBay and their response was along the lines of, "if you ship the item to the address at checkout you'll be covered." Well, yeah, I'll be covered. But someone is paying for that loss and those eBay buyer protection losses ultimately cost eBay and/or PayPal a lot of money.

I had one buyer say after the order was placed that their account email address was changed and the IP address was registered in Russia. Another buyer said the hack came from Indonesia. 

I've been selling on eBay for 7+ years now and, yeah, a handful of times per year we get chargebacks for unauthorized purchases. But this has been happening at such an alarming rate, and it seems like eBay is doing nothing about it! 

Let me know if you heard anything from other sellers.

Thanks,
A.

Note from the editor: Sound familiar? Check out this blog post from a month ago. Sellers may not be as protected as eBay assures them they are!




Comments (12) | Permalink

Readers Comments

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

by: FeelingFroggy This user has validated their user name.

Thu Jan 5 18:14:01 2017

Its kind of hard to find a scammer if one doesn't look for it.

Ebay has no skin in the game of looking for these slugs. They do nothing that will effect the bottom line.

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

by: YourAuctionHero This user has validated their user name.

Fri Jan 6 00:07:55 2017

I've caught scammers trying to buy items and eBay says ship it to them and you are covered. I reported this to a VP of eBay and he was floored that it was happening and supposedly looking into it but I wouldn't hold my breath. I guess they figure insurance pays for it all. But that gives eBay and Sellers a black eye and the person that got their account hacked doesn't even know about it because eBay didn't contact them.

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

This user has validated their user name. by: Marie

Fri Jan 6 03:23:14 2017

This is why Ebay and PP have the rule that you must ship to the address on the payment.  If you don't, you will not be covered by Seller Protection.  It is a very important rule to follow as is illustrated from this letter.

I'm glad to hear this seller was on top of it.  While we don't like all these darn rules that Ebay and PP place on us.  Sometimes they make perfect sense and it is in our best interest to follow them.

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

by: madgeshatbox This user has validated their user name.
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Fri Jan 6 10:45:21 2017

This is also the first year that scammers are out in full force on  Etsy.  Several of my teammates received orders from scammers who wanted the seller's bank info so that they could transfer ''the money''.  One scammer kept contacting one of my teammates, had his account deleted by Etsy then resurfaced with a new account the next day.

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

by: DebraD This user has validated their user name.

Fri Jan 6 11:12:48 2017

Ebay and Paypal have certain policies in place for this very reason-scams. Don't ship to alternate addresses! period! When I get a message from a customer asking that I change an address the answer is always-NO! I politely reference Ebay/Paypal Buyer/seller protection policies. I give the customer the option of cancelling the transaction or having it shipped to the address listed on the PP transaction. I have never had a chargeback after following this practice. So, yes, there are scammers out there. Start protecting yourself by following the rules. Don't expect Ebay to be able to police every transaction. They can't! This is why the aforementioned policies  are in place.  

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

by: a_c_green This user has validated their user name.

Fri Jan 6 11:16:12 2017

This is not new, and the scammers have nothing to lose; thus it's reasonable to assume that they're going to be with us for some time.

The defense against this was already stated: you ship to the address provided with the PayPal payment. Period.

If the buyer requests that you send it elsewhere instead, you refuse. Again: period.

If they genuinely need it sent somewhere else, the procedure is to refund their payment, after which they can enter a new Ship-To: address and pay again. This particular scam is actually relatively easy to defend against. Anyone who's specializing in high-end, high-scam merchandise should assume that a certain percentage of their sales are going to go this way, regardless of whether the PayPal buyers are coming to them via eBay or some other storefront. The proper way to field a bogus redirect attempt is the same in any case: PayPal gives you a Ship-To: address along with your sale proceeds, and that's the only address in play.

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

by: Bird Mad This user has validated their user name.

Fri Jan 6 14:50:48 2017

There are also a bunch of mail/freight forwarding addresses in Doral FL. Watch for anything that has "Flight to" in the address or a strange series of numbers/letters in the second address line. If in doubt of an address, Google the address and even look at the street view.  

We can all block a seller but I wish I could block an entire street address. Even better would be if eBay would allow flagging an address and if more than 10 sellers have flagged the address, eBay would block all buyers using that address.

eBay seams to lack solid methods to act on reports by sellers.

Some buyer addresses also show unconfirmed which even with tracking, eBay may not cover. Thumbs up to "Shipping Easy" as they cross check addresses to see if they are confirmed by the USPS and will alert you.

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

by: rachel This user has validated their user name.

Fri Jan 6 22:32:29 2017

eBay does not lose money so they don't really worry about it. Remember it is your business when things go bad but it is eBay's business when things are great. It's a hands off and hands on when it's convenient.  

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

by: imbloated This user has validated their user name.

Sat Jan 7 00:21:45 2017

YourAuctionHero: I doubt the VP was actually floored. Remember that movie that moved you? Many, many people are excellent actors! How did you manage to reach a VP?!

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

This user has validated their user name. by: eXtinctBay

Sat Jan 7 13:43:21 2017

Scammers? In Russia?? Really???

Next thing you know, they will be accused of rigging the US Presidential election or something crazy like that......

PLEASE NOTE: Tongue is planted firmly in cheek when submitting this.

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

This user has validated their user name. by: Frankcoins

Sat Jan 7 18:06:11 2017

USPS First class packages and priority mail boxes are forwarded free when someone has filed a change of address notice with their post office.  So anyone who has legitimately moved will  get their item when shipped to the old confirmed address for up to one year after moving.    

eBay Fails to Detect Repeat Scams but Promises to   eBay Fails to Detect Repeat Scams but Promises to

by: Snapped This user has validated their user name.

Sun Jan 8 09:05:54 2017

Yes, there are plenty of steps that can be taken so that eBay will 'protect' the seller.

The point is, nothing specific need be done, in any circumstance, to protect the scammer buyer.  And nothing IS being done to prosecute and/or reduce or eliminate them, despite clear evidence warranting such actions.

Meanwhile, eBay continues to judge, convict, and sanction sellers based on mere heresay, and without due process or effective appeal, while remaining as a magnet for malfeasance inclined buyers, because they can metric every 'sale', no matter how fouly tainted or artificial, so to support their claims of continued relevance and 'growth'.

Nothing to see here folks.  'Monkey' business as usual.  



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