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The buyers cannot do much as they paid by bank transfer and the seller is free to run the scam again on another account.” How to avoid it: Never send money on trust. “This scam is quite easy ...
Some merchants may provide a refund upon seeing the item delivered to the same ZIP code; however this is generally used by fake online stores when selling items. This scam exploits a flaw in the tracking system; online tracking will usually only show the ZIP code the package was delivered to, instead of the full address. [6]
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For example, Visa and MasterCard explicitly bar the seller from offering a money-back guarantee past 90 days from purchase. Issues relating to false guarantees have become so common in the United States that the Federal Trade Commission has specifically addressed the issue in the Code of Federal Regulations Handbook (§ 239.3) [ 2 ] .
An example would be the online marketplace, eBay. A seller known for selling high-quality goods can further enhance its reputation by utilizing eBay's reputation system. There is an incentive for the seller to do so, as buyers who derive utility from purchasing the product are naturally inclined to source their purchase from high-quality sellers.
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