In one of the first prosecutions of online auction fraud, a California man has pleaded guilty to defrauding buyers on the eBay Inc. site, according to Reuters.
The U.S. Attorney in Los Angeles said Robert Guest, 31, of Blue Jay, Calif., pleaded guilty to mail fraud involving a number of auctions he posted on eBay. According to his plea, Guest put up various consumer electronics items for sale on the site, but failed to deliver the items after collecting about $37,000 in payments.
Since these events occurred, eBay said it has added a number of security measures including an insurance option for buyers and an escrow service in which the payment is held by a third party until the item is delivered. The company is also in the process of adding a system that will make it easier for individuals to pay by credit card, or receive credit card payments.
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