Is It Possible to Commit Bidding Fraud on eBay?

Suppose you're bidding on an eBay product and the seller isn't happy with the price he's getting. So he gets a buddy to bid on his product to inflate the price and then start a bidding war. There'd be a risk in that his buddy might get stuck with the winning bid, but a clever con-man might be effective at this game 90% of the time so that this type of fraud would be cost-effective.

Does anyone know if such fraud occurs and what safeguards eBay may or may not have to impede such activity?

Ed Strnad believes such fraud is impeded. He writes:

This practice is called "shilling"...it used to be more of a problem but ebay has instituted some safeguards. Basically they have software that tracks for patterns of shilling---ie, if the same bidder is bidding on the same buddy's stuff and never seems to win. Also, you can report it to ebay's "safeharbor" if you have eveidence of fraud.

But Jesse knows it USED to happen:

I know for sure that it USED to happen; my friends used to sell stuff and have mutual friends bid on it -- not something I'm too proud to say about my friends.

Comments

[Ed S.]

I don't think that with 3 million books to track Amazon also knows what blogs have book reviews. Unless they have a way of flagging you. Try posting it under another account, like I do. ("Parker Cross")

[jeffrey McMahon]

I could do that, but then those scores wouldn't count for the 500 Top Viewer status my original account enjoys. Of course, I'm petty myself in that regard.

[Jesse Menn]

I know for sure that it USED to happen; my friends used to sell stuff and have mutual friends bid on it -- not something I'm too proud to say about my friends. Jeff, shoot me an email, I have a bunch of questions to ask you but lost BOTH your email (hard drive crashed) and phone number (new cell phone).

[jeffrey McMahon]

Jesse, e-mail me at herculodge@verizon.net and I'll give you all my contact info.

Good to hear from you.

Jeff