When you think of auctions, you often assume that if you are in the right place at the right time, you can pick up amazing bargains, and by knowing your Victorians from your Georgians, you can instantly spot a good deal. However, an iafrica user recently discovered that his good deal nearly cost him a big chunk of his hard-earned cash.

Now the Internet has become an alternative market place with auction sites popping up everywhere. You can bid on anything from Band-Aids to computers. So you may be thinking that if you bid and win on an item, your treasure will be secured.

The iafrica user in question saw an offer for three top-of-the-range notebook computers without a reserve price and when the bidding closed (just before he went to the site), three people had won with bids of R4 200 each (about a quarter of the in-store price). The item had an email address to contact the seller. The listener decided to contact him to see if he had any more.

He replied (from the US) and told the listener that the notebook costs R6 000 and that the way the deal works is that he must pay the amount in US dollars into an account via a MoneyGram electronic money transfer. The seller would then supposedly send the notebook and even pay for shipping. At no stage had the seller given a name or address or assurances that he would actually send the computer. Efforts to get a name and address out of the seller bore no fruit. Fortunately the user decided that it was probably some kind of scam, and he was correct.

When I contacted the auction site for comment, they were rather reluctant to talk to me and simply emailed some rules to follow when trading on an electronic auction, so listen closely.

After you have successfully sold or won an item, you will be sent an email with the contact details of the other respective party. Give them a call or send them an email requesting details such as a physical address and landline telephone number. Verify the details if possible. Buyers should be extra cautious when finalising a transaction, as it is usually the buyers who will be requested to deposit or send money to the seller. Remember, if the deal looks too good to be true, it is highly likely that it is just that.

Do not deposit money into a bank account or send money to a postal box if you cannot verify the identity of the seller. Be very wary of users (especially those overseas) requesting that you use the following payment methods:

  • Western Union
  • Moneygram or Money Order
  • PayPal
  • E-Gold/E-gol/Osgol/Goldmoney
  • Payment via Wire

    While most auction sales end successfully, there are some scam artists out there waiting for their next victim. Be especially careful if the seller does not reside in South Africa. If you buy five computer games for R300, you are not going to get on a plane to track down you merchandise. Play it safe and only trade with the locals or big multinationals.

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