Things to take note to prevent E-auction fraud when a consumer participating in an E-auction.

User identity verification
This can be done by requesting the user to supply information for on-line verification such as social security number, driving license number, date of birth. E-bay used eBay User program for such purposes.

Authenticate and grading service
Product authentication can be done to verify the product on sale is a genuine product and adhered to the specification. E-bay provides a links for its user to authentication web site for such service.

Feedback forum
Establish a feedback forum to allow registered buyers and sellers to build up their reputations and allows the buyers to provide their comments, such as E-bay feedback forum.

Insurance policy
Provide an insurance coverage to protect the seller and buyer interest, such as ebay offers insurance underwritten by Lyold’s of London and WebTradeInsure.com who provides supplementary insurance.

Escrow services
The buyer and user can obtain an escrow services from the providers such as tradenable.com to protect their interest against frauds such as customers inability to made payments, or sellers inability to ship the goods.

Nonpayment punishment
Imposed a punishment for the buyers who did not honor their winning bids by issuing sterner warning, suspending the users temporary or permanently.

Appraisal services
By providing the user an appraisal services in an on-line mode to appraise the value of the auction item.

Physical inspection
Provides the buyers an inspection services at regional basis by arranging the buyer and sellers to meets and inspect item.