Scams are an inevitable part of the internet. You are always going to come across things that sound good but aren’t, and programs/websites that are fraudulent. This is why it is critical to not sign up for any type of penny auction site, without doing your research. Things you should start researching before enrolling in an online auction site are, how long have they been in business, consumer reviews on the site, and how many people are currently using it. You should also look into how many auctions they have going on every day and how much their items are selling for. It can be easy to spot a scam sometimes, and in other instances, it can be very hard to spot them. A good rule of thumb is, if it seems too good to be true it usually is.
Scams are how dishonest people who are running companies on the internet can steal money from you, and cause you financial hardships. They can take your credit card information when you sign up, and although it might seem safe, they could easily steal your identity from this information. They can also promise you free bids, and not give them or make excuses when you ask questions. If you get any strange feelings from a website penny auction, you should step away and do more research before you go back and make any purchases. Also, do some research on the owner of the company. Make sure you are aware of how long the business has been around and how reliable and stable they are. If its a company that’s not known and hasn’t been around for long, you might want to rethink joining their site.
Another scam that could happen when entering a penny auction, is that the company could be bidding on their products to save money. If they do this, they keep all of the money that people bought the bids with, as well as keep the item and can resell it later. This is hard to spot and almost impossible to distinguish, and you will think you just have bad luck. Again, making sure you do your fair amount of research on a particular site is very important and can save you financially. Look out and be aware for the site offering outrageous prizes. If everything on the auction is a new car, vacation or large amounts of cash, its likely a scam and they will probably not deliver on your winnings.
Scamming you by overcharging for shipping and handling is something else to watch out for. If you have participated in a penny auction and won, you have to pay the price you won it for. But some penny auction scams online will charge you an arm and a leg for shipping and handling and pocket the profit. Checking the Alexa ranking (online website traffic rank)to see how a particular site ranks can be very important to determining whether or not that particular site is a scam. If they have barely any traffic, you know that it is not a popular or well-known site and it might not be safe for you to join or be a part of.