Recently, electronic auctions (e-auctions) have been receiving more and more attention in the world of e-commerce. So, security and efficiency of e-auctions are becoming more and more important. E-auctions are used by councils to secure better contract terms and prices for the goods and services they buy. It’s allow the councils to set up a scheduled event where companies can offer a price in order to buy against each other to win the council’s business. E-auctions conducted online and have been in existence for several years on local area networks. Its started on the Internet in 1995.
However, e-auctions have several limitations such as limited aprticipation,lack of security, fraud or limited software solutions that can support the dynamis commerce. These may because of the buyers cannot see the items, so they may get a defective product.
Escrow services is one the methods which can pevent for e-auction frauds. By using online escrow service will gives us more protection because the online escrow service holds our payment until we confirm that what we were promised within an agreed upon inspection period. Then, it’s forward the payments to the seller. when we are giving money to the escrow service to hold in trust, we want to make sure it’s safe. Then, we need to look for information about whether the service is licensed and bonded and find out how we can confirm that with the appropriate agency. Therefore, escrow service is usually licensed in the state in which it is physically located. Be wary of escrow service sites that only provide an email address and offer no telephone number and address. When we does not have address, we have no way of checking with state authorities to determine if the service is licensed. Some online auction sites have links to escrow services that they recommend. They are private anti-fraud Web sites that list what they believe to be legitimate and fraudulent sites. Therefore, we can found the spelling and grammatical errors on fraudulent sites
We can successully prevented the e-auction frauds by using the escrow services or other ways such as feedback forum or verification systems.
