Oracle Tips by Burleson

Web Stalkers
Chapter 7 - Internet Scams

Shilling Scams

There have been auctions where an auctioneer says that he reserves the right to bid up to his reserve price. However, he does it in such as way that the audience is unclear of the meaning.  Once immunized by the statement, what may happen is the auctioneer then bids himself.  Unscrupulous auctioneers can start bidding wars by bidding for an item themselves whenever they sense that a bidder simply must have the item, at any cost. This type of zealous bidder can often be spotted constantly holding up their bidder card.

Often shilling is done using a team of “shill bidders.” They will all have fake bidder cards and attempt to run up the prices and buy back any items that might sell at a low price. Obviously, bidders do not like auctions with a reserve, or minimum, price because they want to get the best deal. The shill bidders appeal to the greed of the actual bidder, often enticing them to pay a price far above the going rate.

On eBay shilling is against the rules but may not be a criminal act.  The most famous incident of eBay shilling was conducted by a California attorney who was part of a conspiracy to sell fake modern art.

Real World Case: The Crooked Lawyer

Attorney Kenneth Fetterman received a 46 month prison sentence after being a fugitive for almost two years from an eBay scam that netted him a fortune from trusting bidders.  Fetterman was the ringleader in a brilliant scam that preyed on the greed of art collectors.