Here are some tips to keep consumers safe from online auction fraud:

• Understand how an online auction works before you bid on merchandise. Find out the buyer’s and seller’s obligations, whether the auction site provides insurance, and how the site handles disputes.

• It can be hard to validate a seller’s claims about the value of an item, and descriptions or photographs on Web sites can be misleading. Know as much as you can about the item you wish to buy.

• Investigate the seller as much as possible. Be wary of sellers who provide only an e-mail address or post office box address. Check the seller’s feedback rating if available on the auction site. Call the seller to see if the phone number is working, or send an e-mail to see if the address is active. If the seller is a business, check it out with the Better Business Bureau, www.bbb.org

• Contact the seller before bidding to find out what type of payment is required, when you can expect delivery, what the return policy is, if the merchandise is covered by warranty, and if shipping and delivery are included in the price.

• Try to pay the seller directly with a credit card, so you can dispute the charges if the merchandise does not arrive or was misrepresented. If possible, avoid paying by check, money order, Western Union, MoneyGram or bank-to-bank wire transfer as funds sent through such transfers are virtually unrecoverable.

• Be wary of any credit card purchases where the address of the card holder does not match the shipping address. Always receive the card holder’s authorization before shipping any products.

• Beware of sellers who post the auction under one name, and ask for the funds to be transferred to someone else.

• Consider using an escrow service or alternate payment service if purchases on your credit card are not disputable or the goods are not covered by insurance. Make sure the escrow service is licensed and bonded.

• Don’t give out personal information scuh as your Social Security, driver’s license or bank account numbers.

• Do not send your credit card numbers electronically unless you know for sure that the Web site is secure and encrypted.

• Avoid buyers who ask for the purchase to be shipped using a certain method to avoid customs or taxes inside another country.

• Avoid sellers acting as authorized dealers or factory representatives in countries where there would be no such dealers.

• Beware of sellers who post the auction as if he or she resides in the United States, then responds with a congratulatory e-mail stating he or she is outside the United States for business reasons or a family emergency.

If you believe you have been a victim of online auction fraud, it is suggested you take the following steps: