Combatting Allegations of Philadelphia Online Auction Fraud

Combatting Allegations of Philadelphia Online Auction Fraud

Online auction fraud is a big problem these days, especially in major cities like Philadelphia. Scammers are getting more and more sophisticated in their methods, and innocent folks are getting ripped off left and right. As a lawyer in Philly, you’re probably seeing more and more clients coming to you saying they got scammed on eBay, Craigslist, Facebook Marketplace, or some other online platform. It sucks, but there are definitely ways to fight back against these jerks and maybe even get your client’s money back.

How The Scams Typically Work

Most online auction fraud works something like this: the scammer posts an item for sale – let’s say a used iPhone – at a price that’s just a little too good to be true. An unsuspecting buyer jumps on what they think is a great deal. They send the payment, but the item never arrives. The scammer disappears with the money. These crooks use fake accounts and untraceable payment methods like gift cards or crypto to cover their tracks.

Some other common schemes are:

• Selling an item they don’t actually have and just taking the money.
• Lying about the condition of the item, sending something broken or totally different.
• “Escrow service” scams where they trick the buyer into sending money to a fake third party.

And on and on. Point is, online shopping fraud is rampant these days, and Philly is a hotbed for it.

Investigating Online Auction Fraud Cases

So what can you do as a lawyer when a client comes to you claiming they got ripped off in an online auction scam? First step is investigating what exactly went down. Get as many details as possible:

• What item was purchased? For how much?
• Where did they buy it from – which site or platform?
• How did they pay – credit card, wire transfer, gift cards, etc?
• What was the seller’s username? Have they used that name before?
• Did they get any photos, emails, or other communications from the seller?
• What delivery method was promised – postal mail, in-person?
• At what point did they realize something was wrong?
• What have they done so far to get their money back or contact the seller?

Documentation is key here. Get copies of receipts, screenshots, emails, photos, and anything else that supports their story. The more evidence you can gather, the better.

Strategies For Going After the Scammer

Okay, so you’ve done your digging and confirmed that unfortunately your client did get ripped off. What now? Here are some options to potentially get their money back and stop the scammer from striking again:

File a complaint with the platform. Sites like eBay, Craigslist, etc have fraud reporting procedures in place. File a detailed complaint explaining exactly what happened. Provide all the documentation you gathered. The platform might be able to take down the scammer’s account, issue a refund, or help pursue them. No guarantees, but it’s worth a shot.

Report them to the FTC. The Federal Trade Commission handles complaints about online scams. Even if the FTC can’t get your client’s money back, reporting the fraud helps them track down scammers and build cases against them. The more reports they get about a particular scheme, the better.

Notify the police. File a police report about the scam with the Philly PD or Pennsylvania State Police. This helps establish an official record of the crime. The cops likely won’t be able to do much directly, but it aids in the paper trail.

Look into suing. You may be able to file a civil lawsuit against the scammer for things like fraud or breach of contract. Of course, that depends on being able to determine their real identity. Subpoenaing records from the platform they used can help uncover that. If you manage to get a judgment against them, that’s leverage to potentially get your client’s money back.

Go after their payment accounts. If you can figure out what payment methods or accounts the scammer is using, you can try contacting those companies about freezing funds or reversing fraudulent transactions. This only works in certain situations, but can be surprisingly effective in some cases.

Building a Strong Fraud Case

As you can see, there are several avenues for going after online retail scams. The key is thoroughly documenting your client’s case and gathering as much evidence as possible. Here are some other tips:

• Get statements from any witnesses like friends or family who can corroborate your client’s story.
• Research whether the scammer has pulled this same stunt before under other usernames – victims comparing notes can help identify patterns.
• If purchases were made with a credit card, take advantage of fraud protections – some card companies will do a “chargeback” and refund the money.
• Consult experts like retired cops or financial crime investigators who can lend their expertise to tracing the scammer.
• Contact the domain name registrar or web host for any websites the scammer used and see if they can provide info or take the site down.
• Consider hiring a private investigator to track down the scammer’s real-world identity, location, or assets.

Helping Victims Avoid Scams in the First Place

They say “an ounce of prevention is worth a pound of cure.” While going after scammers is important, it’s also key to educate online shoppers on how to avoid getting ripped off in the first place. As a lawyer, you can help clients steer clear of fraud by offering tips like:

• Stick to well-known platforms like eBay rather than sites no one has heard of.
• Research seller ratings and reviews before buying expensive items.
• Avoid offers that seem “too good to be true” – they probably are.
• Never buy something via bank wire transfer, gift cards, cryptocurrency, or other irreversible payment methods.
• Don’t communicate or share personal info outside the platform’s messaging system.
• Only buy from local sellers you can meet in-person, or reputable major retailers.
• Use credit cards for purchases whenever possible to take advantage of fraud protections.
• Make sure sites use secure checkout and look for the