Auction Fraud: How to Protect Yourself and Your Assets
Auction Fraud: How to Protect Yourself and Your Assets Minnesota auctions —whether online or in person—offer exciting opportunities to buy valuable items, real estate, collectibles, and more. However, as with any transaction involving money and goods, there is always a risk of fraud. From fake listings and shill bidding to non-delivery scams, auction fraud can cost unsuspecting buyers and sellers both time and money. Knowing how to identify red flags and protect yourself is essential for a safe and successful auction experience. Understanding Common Types of Auction Fraud Auction fraud can take many forms. One of the most common is shill bidding , where the seller (or an accomplice) secretly bids on their item to artificially raise the price. This can mislead genuine bidders into overpaying, thinking there’s more demand than there is. Another type is non-delivery fraud , where the winning bidder pays for an item that is never shipped, often because the item never existed in the first p...