Ebay Fraud - $1200 over an Online Game Account

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Warcraft

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I recently bid on a Ebay auction for an Online Game Account. The agreement through Ebay was $1200 for a "Ragnarok Online" (an online computer game) account.

He had, initially, excellent response to my questions about the account through emails and AOL Instant Messenger (All of which are saved dialogues). However, after I paid him the $1200 through Paypal (using Paypal funds), he cut off all contact to me.

The phone number I requested from ebay doesn't appear to be the correct number. (I called, it wasn't the seller's phone).

He's listed that he lives in Cupertino, California, and I also have his address. Coincidentally, I also live in Cupertino, California.

Unfortunatetly, Paypal's website states that "Services and intangible items are not covered" in its Buyer Protection.


Any advice?
 
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Ouch... that really hurts and I'm sorry to hear about what happened. :(

There are other fraud response measures taken that are listed here and I'll see what can be compiled. Here is one thread in particular:

http://www.thelaw.com/forums/showthread.php?t=2289

Today the Wall Street Journal had an article on the incredible rise in fraud, especially with regard to e-bay.


Are you sure you have the right name and address? If you are, there are many ways you can find out more information and hopefully freeze bank accounts. It might be worth it since you are both local. If you file a small claims case you would want to immediately get an information subpoena and restraining order issued -- the clerk of the court should be able to help you with that. You must do it immediately and send several to popular banks within the area and hopefully you can freeze one of his accounts up to that amount of money and obtain a judgment in small claims.

The police may not want to get involved and say it's a civil matter but you may want to report it to the authorities as a theft. I would still want it reported.

Did you pay cash or use your credit card at Paypal?

Originally posted by Warcraft
I recently bid on a Ebay auction for an Online Game Account. The agreement through Ebay was $1200 for a "Ragnarok Online" (an online computer game) account.

He had, initially, excellent response to my questions about the account through emails and AOL Instant Messenger (All of which are saved dialogues). However, after I paid him the $1200 through Paypal (using Paypal funds), he cut off all contact to me.

The phone number I requested from ebay doesn't appear to be the correct number. (I called, it wasn't the seller's phone).

He's listed that he lives in Cupertino, California, and I also have his address. Coincidentally, I also live in Cupertino, California.

Unfortunatetly, Paypal's website states that "Services and intangible items are not covered" in its Buyer Protection.


Any advice?
 
Thanks for the advice. Lots of things have gone on since your reply.

1. I have brought this matter up with the local police department, and they've actually been helping quite a bit. The first day a deputy came to take information, he charged the seller with a "Grand Theft" and took copies of the Ebay sales and email transactions between the seller and me. The police are still investigating. They have his real address and all that information. They say that his "court date" is actually pending.

2. The seller claims that he sent me the account and password. He also claims that he cannot access the account anymore, and the password has been changed. I actually think I may have evidence that he still owns the account and that he does know the password to it.

3. Paypal - I paid with paypal funds, so unfortunatetly, I can't do a chargeback. I've also filed a Paypal claim, but they're very unhelpful at dealing with intangible items. They closed the case, with a standard "we don't like to deal with intangible items" excuse.

4. The company actually does not allow sales of virtual property on Ebay. These transactions still happen on Ebay all the time, but the company official stance is to "close an offender's account." (The company has not closed this account yet since it hasn't been brought up to them)

I'm thinking about taking him to small claims court. With a very brief consultation to a lawyer, there are some steps that I need to take here. Planning to talk to the police, obtain information, and then take the steps to take him to small claims court.

I do fear that I might lose in the small claims court though - intangible items are hard proof. And I really have no idea what to expect in court. I am doing some research on the matter, but I know that dragging it out further is only bad for me. Basically, I'm unsure of what to do to "win" the case in small claims court. I don't think the seller can prove that he shipped the item, and he might also say that he can't get on his account. There is proof that I paid him through Paypal. Beats me on what to do.
 
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I definitely think you should go to small claims court. This basically is either a contract for a sale or a contract for a service (I am not familiar with what you actually tried to buy there), but the main point is that he took your money and did not deliver.

In small claims court the good thing is that you don't have to be a lawyer. The whole process is designed so that normal people can tell a judge what was going on.

What you should do is get one of the many books on this subject and prepare your case and then file suit.
 
What happened?

Hey Warcraft, how did you end up resolving this issue? I'm actually considering similar action against someone who scammed me online for about the same amount.
 
Similar issue

I just went through a similar issue.

I paid someone to help me develop a 'character' in an online game. He took the money and didn't do the work. I spent time and money to locate him and take him to small claims, where I won. I had to travel out of state and incur $600 of expenses that were added to my judgment. Keep records of every expense you did. You may even be able to claim time and effort expenses, although I didn't in my case.

The hard part is getting the money, since 'winning' in small claims doesn't mean you get paid. There's also no guarantee the person will ever have the money, especially given the age and assets of people that tend to be the ones that do these types of fraud. Time will tell!

The amount of my verdict is $1300. Onward ho to debtor examination and possibly future garnishment. I really doubt I will see a nickel of the money. People can claim 'bankruptcy" and get away with not paying anything I understand.
 
Additional reply

Since this type of service is becoming so prevalent, it would be nice to put pressure on services like Paypal and Ebay to honor the reversal of transactions for services and virtual property when dealing with dishonest people. A service is a service. These services are essentially havens for those that defaud others. It is a shame that banks and financial service companies hide behind their 'policies'. If they had reversed my transaction, the onus would have been on the person who defrauded me to take me to court to prove he did the work, which he couldn't have done. Rather, me, the honest person had to pursue this deadbeat.

For those that do a lot of online transacting - keep all your records. You never know when you need to create them for a court case. In my situation, I recreated the 59 communications, online pictures, instant messenger communications, etc. all to prove my case. They all weren't needed, but don't take chances!

g
 
How To Sue eBay and Paypal for Unfair Business Practices

Consumers who have experienced unfair business practices from eBay and Paypal, e.g., where the companies refuse to live up to their buyer protection programs, may have recourse in a court of law. Typically unsatisfied consumers have bought a product on eBay or pay for it using Paypal only to find that the article is not as represented, is a different color or size than pictured, or arrives in a broken and unusable condition. When the consumer complains to eBay and Paypal and asks for a refund, both of these eBay-owned companies disavow any responsibility owed to the consumer.

This article will present a guide for consumers to prosecute eBay and Paypal for deceptive business practices that harmed them and what they can expect from eBay and Paypal in terms of defenses. At the outset, note that eBay and Paypal have managed to insulate themselves from damages claims through creative wording of their user agreements, which all consumers must agree to accept as a condition for using either eBay or Paypal.

Paypal, Inc., is a subsidiary of eBay, Inc., and the two companies are intertwined for purchasers of goods sold on eBay.com to complete payments to sellers using Paypal.com. The Defendants Paypal, Inc. and eBay, Inc., may be served with process (summons and a complaint) using the long arm statute of the consumer's state. The long arm statute most likely provides for service of out-of-state corporations through the state's Secretary of State. eBay's may be served with process at the following address: eBay Inc.; Attn: Corporate Counsel; 2145 Hamilton Avenue; San Jose, CA 95125.

Upon receiving the consumer's lawsuit, the defendants eBay and Paypal will advise the consumer that his or her user agreements with these two firms require the consumer to file disputes against the firms either with a court in Santa Clara County, CA, or with the National Arbitration Forum. If the consumer does not voluntarily withdraw his suit, then eBay will threaten to seek its lawyer fees to have the case dismissed. At this point, most consumers then drop their suits.

However, the arbitration clauses in the user agreements exclude claims for equitable or declaratory relief. Accordingly, if the consumer files his suit from the outset seeking equitable or declaratory relief, then the eBay user agreement defense will NOT prevent the lawsuit from going forward. With the lawsuit proceeding forward, the consumer can send eBay or Paypal interrogatories to seek discovery. Interrogatories are written questions sent to a party to a lawsuit that must be answered in writing, usually within 30 days. With interrogatories, the consumer can get access to information about the seller, as well as the frequency with which consumers have complained about items being delivered that were materially different from the item pictures on eBay.

The consumer's local state court will have personal jurisdiction over the eBay and Paypal to hear claims for equitable and declaratory relief, because these firms have established substantial contacts the consumer's state. The following non-exhaustive list of activities and contacts by the eBay and Paypal in and with the consumer's state make it fair, equitable, and convenient for eBay and Paypal to defend these causes of action in the consumer's state:

(1) The controversy arose out of the consumer's purchase of some item on eBay.com, which was shipped to him or her at the consumer's address, and which arrived damaged and unusable. The funds used to pay for this transaction were drawn from a bank in the consumer's hometown, and payment for this transaction occurred in the consumer's hometown. The contract to purchase the item and pay for shipping was most likely formed in the consumer's hometown.

(2) For more than 10 years, eBay and Paypal have systematically and continuously advertised their services to the consumer and other Internet users in the consumer's state via advertising and electronic mail. Over the years, eBay and Paypal have collected fees on scores of millions of dollars in payments and seller fees from businesses and residents in the consumer's state.

For circumstances in which a seller refuses to take back damaged merchandise and issue a refund, the consumer can seek equitable relief to bar that seller from any and all further transactions on the eBay and Paypal platforms. The consumer can seek declaratory relief that eBay and Paypal's Buyer Protection Plan submission forms are riddled with computer errors and will not allow users to properly submit claims.

The consumer should also check whether, and seek declaratory relief that, eBay and Paypal's fraud violated the state Consumer Protection Act, which frequently gives the consumer a statutory right to prosecute eBay and Paypal independent of any breach of contract claim he or she may have related to the user agreement.

The consumer can also challenge in his local state court the validity of the arbitration clause as unconscionable. A claim that the arbitration provision is unconscionable is a matter to be decided by the courts and not the arbitrator, because it specifically challenges the validity of the agreement to arbitrate irrespective of the validity of the whole contract. If the state trial court determines that the arbitration clause is unconscionable, then the consumer will be entitled to pursue monetary damages against eBay and Paypal. However, it is unlikely that a state court will find the arbitration clauses unconscionable, due to the pro-business tilt of the U.S. court system.
 
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