According to the Federal Trade Commission, Internet auction complaints consistently top the list of the thousands of complaints that are received every year. Frauds related to Internet auctions occur when a seller fails to send you the merchandise, sends merchandise different from what you ordered, falsifies information about the merchandise for sale, or takes an extremely long time to deliver the merchandise.

As an Internet auction user, you should also be careful of on-line escrow services, which when used correctly will hold your payment until you have received the merchandise and inspected it. Once you are satisfied, the escrow service will release your funds to the seller. However, in some instances, the seller could insist on using a particular escrow service that is in on the scam. This escrow service could then send payment to the seller immediately, leaving you without your funds or merchandise.

The Federal Trade Commission has put together a comprehensive on-line guide for buyers and sellers of Internet auctions. EBay, the world's largest internet auction site has a comprehensive Security and Resolution Center on their site to help you have a safe buying experience and to allow you to report problems such as spoofed emails or fraudulent transactions.