Consumer Reports WebWatch Survey: More Than 25 Percent of New Yorkers Stung in Online...

Consumer Reports WebWatch Survey: More Than 25 Percent of New Yorkers Stung in
Online Auction Site Scams

YONKERS, N.Y., Oct. 1 /PRNewswire-USNewswire/ -- Online auction fraud ranks
first among the types of complaints New York state consumers make about the
Internet to state and federal officials. According to a recent statewide
survey by Consumer Reports WebWatch, the Internet integrity division of
Consumers Union, the non-profit publisher of Consumer Reports magazine, 27
percent of New York state residents who have ever used an online auction Web
site, such as eBay or Amazon, have experienced a scam or deceptive practice --
32 percent of eBay users were scammed.

The survey, which focuses on online fraud, was commissioned by Consumer
Reports WebWatch, which evaluates the credibility of Web sites and advocates
for consumer-focused Internet policy and governance. The full report is part
of Consumer Reports' free Online Security Guide at
http://www.consumerreports.org/security, which has launched to coincide with
National CyberSecurity Awareness Month.

Common Complaints of Online Auction Users

Eleven percent of users of online auction sites reported that they never
received the goods they bid on, making it the most common complaint.
Additionally, seven percent of survey respondents who received their goods
said that they were not in the condition that they expected. Other common
complaints included not being told a key detail about the item before it
arrived (7 percent) and being sent an item of lesser value than the one they
actually bid on and won (7 percent).

"Online auctions are great for bargains, quirky merchandise and collectibles,
but you need to know what you are doing," said Beau Brendler, director of
Consumer Reports WebWatch. "Con artists, rip-off specialists and sophisticated
criminals can catch you at every step of the process, from bidding to payment
to shipment."

"Using online auction sites is just one of the many ways that consumers can
get stung online," said Jeff Fox, Technology Editor, Consumer Reports. "Our
free Online Security Guide offers consumers tips, tricks, and advice for
protecting themselves from a variety of Internet threats -- there's even a new
animated video and an interactive quiz to teach consumers about e-mail scams."

Other survey highlights include:

Online Auction Sites New Yorkers Use the Most

-- Survey respondents who reported using an online auction site used the
following sites the most - eBay (52 percent), Amazon (45 percent) and
Overstock (21 percent).

Doing Research

-- Almost 40 percent of respondents said that because they have
experienced
some type of auction fraud, they would do more research on sellers
before bidding.
-- Despite the sometimes risky nature of online auctions, 57 percent
surveyed said they did not read any information about online auction
fraud before placing a bid.

Avoiding Online Auction Sites

-- Only 12 percent of respondents said they would stop bidding on auction
sites altogether as a result of their experience with online auction
fraud.
-- About 20 percent of respondents said they would no longer buy certain
types of products on auction sites. Among age groups 18-24 and 25-34,
the number was even higher -- 31 percent.

Solving Problems

-- When confronted with some kind of fraud, more than 50 percent in most
age groups said they tried to resolve the problem directly with the
seller.
-- About 40 percent said they filed a formal complaint with PayPal, the
online payment service owned by eBay.
-- More than 25 percent left negative feedback for the seller.
-- In general, few respondents chose to contact law enforcement, a
lawyer,
or the U.S. Federal Trade Commission.

For more information, please visit www.consumerreports.org or
www.consumerwebwatch.org. For additional information on Internet threats and
how consumers can protect themselves online visit
www.consumerreports.org/security which features a new musical video titled
"Gone Phishin" developed to educate consumers about the dangers of e-mail
phishing scams. The site also features an interactive tool "Phishing Trip"
that lets consumers test their ability to recognize e-mail scams.
Additionally, Consumer Reports WebWatch will be releasing more results from
its statewide survey on Oct. 15, covering phishing, spyware and other issues.

Poll Methodology

The survey was commissioned by Consumer WebWatch, designed by the Consumer
Reports National Research Center and conducted with a sample of 2,008
panelists representative of the geographic population distribution of New York
State. Eligible respondents had been using the Internet for more than a year
and owned a home computer for at least six months. The sample was
representative of New York State residents who had been online for at least a
year and is not nationally representative. The results may differ for a
sample of less experienced users.

OCTOBER 2008
The material above is intended for legitimate news entities only; it may not
be used for commercial or promotional purposes. Consumer Reports(R) is
published by Consumers Union, an expert, independent nonprofit organization
whose mission is to work for a fair, just, and safe marketplace for all
consumers and to empower consumers to protect themselves. To achieve this
mission, we test, inform, and protect. To maintain our independence and
impartiality, Consumers Union accepts no outside advertising, no free test
samples, and has no agenda other than the interests of consumers. Consumers
Union supports itself through the sale of our information products and
services, individual contributions, and a few noncommercial grants.

SOURCE Consumer Reports WebWatch

Melissa Valentino of Consumer Reports WebWatch, +1-914-378-2432,
mvalentino@consumer.org