Massive TradeMe Scam nets hundreds of victims

9th August 2007

Massive TradeMe Scam nets hundreds of victims

Another large scale scam has hit New Zealand auction site TradeMe. In late July a new member operating as dvd_hook_ups listed hundreds of new DVDs for sale with one dollar reserves. He found ready buyers who all deposited money into his account, but no DVDs were forthcoming. The scammer pocketed more than $5,000 in a single week.

So far 95 victims have come forward but the final number is likely to be a lot higher than that” says Alf West, one of the principals of internet watchdog group ScamBusters. “Many people bought multiple lots and unsuccessful bidders were offered additional copies when the auctions ended. We’re aware of one victim who lost $350 and another spent $400 buying multiple boxed sets from this lowlife.”

“Ironically, recent changes by TradeMe to their DVD area have made this type of scam even easier,” West claims. “Previously you needed to photograph the package and write your own text. Now you merely enter any DVD title and TradeMe supplies the rest of the details as well as a handy photo.”

“We believe that the number of auctions new traders can operate should be restricted to six or less at any time,” says West. “While that wouldn’t prevent these types of scams happening, it would restrict the number of victims a scammer is able to hit in one strike.”

Formed in 2003, ScamBusters now has more than 3,000 registered members spread throughout New Zealand. The group operates online forums where their members report and discuss TradeMe scams in progress.

Details of the scam are available in the members section of the ScamBusters’ forum. www.scambusters.co.nz/forum

ENDS

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