How To Protect Your E-Business From Buyer Scams
How To Protect Your E-Business From Buyer Scams
Regardless of what kind of business you have, you are always going to be a target for dishonest people. This is especially true for those of us that own online businesses, especially those specializing in buying and selling merchandise online. Of course, no one wants to be the victim of a scam and lose money, so what can you do to protect your e-business from being scammed?
Before you can take the necessary steps to protect your online business from being scammed, you must first understand the different ways buyers can steal from you. As is common on the Internet, online scams are constantly changing and evolving. Some of the most common types of scams sellers experience are listed below. Take the time to read through them and fully understand how they work before you move on to the necessary precautions.
1. Charge Back: The way this scam works is when a consumer purchases one of your products online and pays by check, money order or credit card. The payment will be processed and all will go smoothly until the customer receives the ordered item. That is when the scammer will contact their bank or credit card holder and issue a "charge back." In most cases, a charge back will be granted when the buyer claims that he or she didn't receive the item ordered.
When this happens, the seller loses both the money made on the product and the product. However, there are ways to ensure that this doesn't happen to you.
2. PayPal Email Scam: One of the most common types of scams that many online sellers have fallen victim to is the old PayPal email scam. Basically, the way this works is the potential buyer will contact the seller through email in regards to a product listed on eBay or another popular auction site. In the email, the buyer will ask to purchase the item up for sale for an amount that is more than the seller's original asking price. Once the seller agrees to the buyer's offer, the scam begins.
As the seller, you will give the buyer your PayPal email address so that the buyer can deposit the money into your account. However, you will receive an email that's supposedly from PayPal stating that you must submit the item's tracking number before the transaction will be completed. In other words, you will need to send the item and get a tracking number to prove it's sent before you will receive your money. This is a scam because PayPal doesn't send out emails like this under any circumstances. The email came from the scammer and once they know the product has been shipped, that's the last you'll hear from them. You won't get any money at all.
3. The "Switch-a-Roo" Scam: This scam is one that has been around for a long time. You know the one, when someone would go in and purchase an item from a store and then a few days later bring the item back for a refund because something was wrong with it. Well, the item they brought back for the refund wasn't the one they just bought instead it was a broken item they had that needed to be2 replaced.
This scam is now being done online. How it works is a buyer purchases an item you have for sale and then contacts you, claiming that it wasn't in the condition stated. As the seller, you agree to refund their money when you receive the product back. However, the item they send back to you isn't the one you sold them, but one they previously had.
4. Phishing: Anyone who does business through eBay and PayPal is a target for phishing scams. These scams are done through emails that are supposedly sent from eBay or PayPal. The emails will claim that your account has been temporarily suspended, an item has been shipped, or the email will request that you verify information regarding products you have for sale.
Regardless of what the email says, each of these emails will ask you to login to your eBay or PayPal account by clicking on the link provided. The link provided will bring you to an authentic looking page, but will actually be a place where the scammer can get the details needed to hack into your accounts.
As you can see, there are several different types of buyer scams that can happen to unsuspecting online businesspeople. With scams like this, you may be wondering why in the world you should continue your online business. Well, the good news is that there are several things that you, as on online seller, can do to protect your e-business from falling victim to one of these scams.
1. Follow Your Instincts: Many online sellers make the mistake of ignoring their gut instinct that tells them something isn't right. If you feel that something "just isn't quite right" about a transaction, then it's time to start double checking everything.
If you receive suspicious emails from eBay or PayPal, you can make sure they are the "real deal" by consulting spoof@ebay.com and spoof@paypal.com. All you need to do is forward the emails in question to these addresses and you'll know if they're phishing scams or not.
Also, be on guard when a potential buyer starts asking out-of-the-ordinary questions about your return policy. This may be an indicator that the buyer has plans on trying the "switch-a-roo" scam on you. Trusting your instinct is really the only way to protect yourself from this scam.
2. Always Track Packages: To make sure that you don't fall victim to the charge back scams, always track the items you send to customers. PayPal won't help sellers if they can't prove that the item was received by the buyer. The only way to prove an item was received is by tracking the item. This will also protect you when dealing with banks or credit card companies trying to get money back for the customer. Always cover your bases and have proof of delivery for every item you ship!
3. Verify Purchases: If you are selling high-priced items and receive a very large order, don't be afraid to call the buyer and verify the information provided. Some online business owners have actually prevented purchases from being made with stolen credit cards this way! Therefore, if you have a feeling that something may be amiss, don't hesitate to call and verify all the information given before shipping the item.
4. Familiarize Yourself with Protection Policies: Always know what the protection policies are for sites you do business through. For example, if you sell on eBay and accept PayPal, then you need to be aware of the protection policies for both of these sites. You also need to understand what their procedures are in case you do fall victim to a scam, so you know how to proceed.
Best Tips For Home-Based Businesses WAHID'S ESTIMATION - THE EXPLICIT ASPECTS OF BUSINESS PLAN FOR A STARTUP BUSINESS Will Divorce Destroy your Business? Using Social Media Tools to Skyrocket Your Business Payday Loans - Easy Cash Top Ten Tips for Marketing a Business Offline Need The Simplest Yet Powerful Effortless Instant Cash Opportunity?NO HYPE Start Home Based Business - 3 Great Product Ideas For Success Kyozou Brings Online Businesses Ahead Start Home Based Business - 3 Steps To Success Start Home Based Business - 4 Important Steps To Getting Your Business Started Start Home Based Business - 3 Great Ways To Drive More Leads To Your Business Start Home Based Business - 3 Ways To Turn Cold Leads Into Paying Customers