Online Shopping Safety Tips

Understand how Internet auctions work.
Before you sign up to sell something, buy something first. The more you know about the process, the more likely you are to notice if a buyer isn't playing by the rules. Choose your auction site wisely.
All auction sites are not created equal. Before you decide where to sell your items, do a little research. Read and understand the site's privacy policy and check sites like Epinions or Consumer Reports for reviews.

Check out the buyer's reputation.
Many auction sites have a built-in system that allows you to rate other sellers according to your experience with them. It's wise to be wary of a buyer who has negative ratings as a seller. Before your auction closes, cancel bids from buyers who are known to submit bogus bids.
If you believe one of your buyers is bogus, you may be able to cancel their bid (depending on the auction service's policies), but only before the auction closes. Some auction sites even allow you to restrict an auction to pre-approved bidders or buyers only.

Consider using a third-party payment service.
Third-party payment services allow you to transfer money into an online account and make payments from that account without exposing your actual credit card or bank account information. These services are often preferred over using personal checks. Consider using an online escrow service for big ticket items.
An escrow service acts as a go-between, holding the buyer's money until the buyer receives and approves of the seller's item. The terms of escrow should be agreed upon by both sides; you may wish to make accepting those terms required to bid on your auction. See below for information about finding an escrow company you can trust.

Research any third-party payment or online escrow service a buyer wants to use before you agree.
The Federal Trade Commission (FTC) has received reports of fraudulent buyers who will insist that the seller use a third-party payment service or an escrow service, which turns out to be fraudulent. The seller ships the item to the escrow service, but never receives payment or the return of goods. For information on third-party payment services see Protect your privacy with online payment services.

Call the credit card company.
If you choose to accept credit cards, contact the company that issues the card to verify that the name on the card matches both the shipping information and the contact information you've received.

Use tracking services when shipping.
It is usually the buyer's responsibility to pay for shipping an auction item, but the seller typically chooses the shipping method. To help ensure that your item arrives in a timely manner, and to help prevent fraudulent buyers from claiming that they never received an item (when, in fact, they did), use a shipping service that includes tracking or consider paying or charging extra for tracking services.

Never respond to unsolicited requests to update your account information.
These are most likely a scam that could lead to identity theft. Most legitimate companies will never send you unsolicited e-mail or instant message requests for your passwords or other personal information. If you do receive such a request that you think may be legitimate, contact the company directly (not through the message you received) and ask for confirmation.